Oracle Procurement Contracts is the enterprise application that creates and enforces better purchase agreements. This is a key component of Oracle Advanced Procurement, the integrated suite that significantly reduces all procurement management costs. Despite the importance of contracts that govern supplier relationships and the huge sums involved, the contract management process is prone to errors and lacks meaningful controls. Unfortunately, contract negotiations without proper supervision can be long and unpredictable, and the resulting contracts can put a company at risk. And even the best contracts can`t make the expected savings because a company isn`t able to enforce the law. Oracle Procurement Contracts allows you to take control of your contract lifecycle, from creation and negotiation to implementation, application, evaluation, and closing. Company stakeholders, procurement experts, and lawyers can quickly create contracts that meet company standards. In addition, your company can measure compliance to ensure that negotiated savings impact results. Contract library: This is where the contract is stored as clauses and templates. These clauses and templates are created, managed, and approved in the library. These can be used for procurement, procurement documents or independent contracts (not related to procurement and procurement documents).
Oracle offers an advanced search feature that allows you to search for contacts based on various criteria such as « contract type », « start date », « vendor », « status », « business unit », etc. If you leave the Business Unit field blank, the system performs an enterprise-wide search. In addition, the keyword search function is also available for contract search. This is a method used by customers who do not have many changes in their contractual jargon and who only intend to use the Contract Workbench as a real repository of their signed contracts. The advantage is that maintenance is low in advance. However, the comparison of past and current versions of the same contract is not really obvious, as they are in the appendix. This blog aims to illustrate simple examples of how supply contracts can be used and are highly relevant to all businesses. Some of the most common vulnerabilities associated with offline contracts are: Contract Workbench: This is the repository where stand-alone contracts can be created, managed, and signed between your organization and the vendor. Oracle offers the option to download the contract in MS Word, then make changes with changes (red line), then download it again accepting all the changes. This will maintain an audit trail of the changes that have been made with the appropriate feedback. This feature is only available in oracle cloud and integrates with the procurement module to ensure a seamless process flow from quote creation to contract.
Supply contracts are very flexible and have low presets. With proper training and guidance on system implementation, this module can help mitigate vulnerabilities associated with contract management in your organization. (b) These clauses and templates, when created/amended, shall be transmitted for approval. Oracle has provided a highly configurable approval hierarchy for clause and template approvals. For example, clauses can be routed to different people within the organization for approval depending on the type of clause. (a) The contract library can be used to create and maintain clauses that can be applied to a model contract that can be applied to a procurement or supply document such as a standard order, a framework purchase agreement, an RFI, a tender, etc. e) Oracle offers the ability to automatically apply contract templates to procurement/provisioning documents. Buyers may or may not change the clauses in the actual documents, depending on the configuration. If you, as an organization, want to allow buyers to update/remove clauses from actual purchase documents, Oracle allows you to review policy discrepancies. The buyer can also see if there are newer versions of the clauses that are applied to the purchase and provisioning document Oracle offers the functionality of using the notification sender to generate expiration notifications. For example, the contract can be set to send a reminder notification to the contract administrator X days before the end of the contract to renew/update the contract.
d) Clauses/templates can be « Global » or « Local », meaning they can be created in one business unit/business unit and adopted in others. In this case, the clause/model created in the source business unit/business unit becomes the overall clause. Local versions that are adopted in other field units/business units become « local » clauses. This is extremely useful to minimize the effort required to create and maintain clauses. New versions can only be created once in the « Global » business unit/business unit and adopted in local business units. h) Oracle also has the ability to import the clauses from Word/PDF, which can help minimize setup time There are 2 ways that customers can use Contract Workbench to convert repository contracts such as privacy, framework service agreements, etc. to create and maintain. Learn about key considerations, cloud integration with legacy applications, and the challenges of today`s cloud deployments. c) Oracle maintains version control, which allows users of the contract library to check the differences between previous and current versions In this method, depending on the type of contract, contract templates can be defined with clauses containing the contract wording. For example, a contract type such as a Service Master Agreement or Non-Disclosure can be defined, and a contract template can be assigned to that type of contract so that Oracle applies the template and creates the contract for you for each new contract that needs to be defined between your organization and the vendor. The advantage of this is that you get all the benefits for the contract library highlighted in the section above. This is a preferred method if you want to take full advantage of supply contracts.
f) Contractual services can be assigned to buyers/suppliers in a model contract and due dates can be assigned. Due dates can be set or encrypted, by e.B X days after the completion of an order. These services are visible in the iSupplier and the provider receives notifications when they are late. g) Contract Expert is another tool provided by Oracle that automatically applies clauses to purchase/procurement documents based on responses to a preconfigured questionnaire. This is useful for organizations where contractual clauses for procurement documents are complex in nature and cannot be summarized in a single template per document type. .