Agreements

Agreements provide a mechanism to define and manage internal and external agreements, also called deliverables, for the contract. You use the Supplier Contract Management system to update, monitor, and validate agreements. You can assign agreements through Strategic Sourcing bid factors and Purchasing contract agreements. Agreements make it possible for you to ensure that a supplier is in compliance. The system enables you to:

• Attach clauses from the clause library to an agreement.

  Clauses can define the details about the subject of the agreement, for example, how a custom product is inspected upon delivery. You can use the agreement in both requests for quotes and Purchasing contracts.

• Set up internal and external owners.

• Define notifications.

• Track contract compliance by requiring owner verifications of steps. You can set up deliverable steps for internal and external updates (supplier portal) as required.

• Document deliverables by attaching documents, comments, and responses that support compliance.

• Use procurement history to establish metric measurements that provide you a means to analyze a supplier's quality, quantity, and delivery performance against the terms of an agreement specific to each contract.

You can assign agreements to a contract header, category, or line items in the contract. The system also provides you a means to update, monitor, and review agreements, their verification steps, statuses, and workflow notifications. After creating an agreement, you use the feature to manually manage the agreement.