Flow for creating supplier contracts for services and maintenance

An important industrial group needed to manage in an efficient, secure and controlled manner: a) creating and exchanging contracts with its suppliers of services, b) call out reports regarding the activities actually carried out under the contracts entered into.

Specifically, they wanted to:

  • streamline the exchange of documentation between the Procurement Office and the Legal Office in the phase of creating contracts
  • have greater control over sending the definitive contracts to suppliers and archiving the signed copies
  • efficiently manage call out reports regarding activities carried out
  • easily calculate a balance of the activities carried out in a specific period by a specific supplier, also making the subsequent invoicing more simple

The Globe document management software, already widely used in other contexts within the company, was the ideal solution to meet the specific needs that arose in managing contracts with suppliers of external services. Two flows that are related to each other were implemented:

  • A first flow is linked to the creation of supplier contracts and continuous exchange of documents between the Procurement Office and the Legal Office, necessary to arrive at the definitive version of the contract.
  • The second flow regards the activities actually carried out under the contract, linked to call out reports and their invoicing.
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By managing the process of creating contracts through Globe, the Procurement Office and the Legal Office can keep each phase under constant control, easily exchanging the documentation necessary, without the risk of losses or delays.

Each user is involved at the time their intervention is necessary and the configured workflow ensures control over the progress of the planned activities, at all times.

Moreover, all the contractual documentation can be immediately located and consulted, broken down by views useful to the user (for example, by document type or progress).

The digital management of call out reports completes the flow: firstly, it is simpler to keep under control which activities were actually carried out among those set out in the contract; then, you always have a complete overview of the reports relating to each supplier, with the option to group them by period, search for them and calculate their total balance, reducing the risk of errors and streamlining the processes.

The solution, in detail…

Flow 1: creating contracts

The Procurement Office creates a new purchase contract by filling out a specific form in Globe, starting with a purchase order previously entered in the administrative software: entering some basic data of the contract (for ex. contract no.) Globe automatically enters other data from the administrative software. After selecting the owners and supervisors of the activities, a new draft contract is generated, starting from a pre-set, editable Word template. Entering the basic data also activates the management workflow for all the activities envisaged for supplier contracts.

At this point, the Procurement Office – through a specific action in Globe – can define the elements that should comprise the contract. These details will be needed by the Legal Office to draw up the definitive version of the document. Once the user has filled out the fields required in the form, a pre-filled out Word/Excel template will open containing all the information entered, while certain fields of the document must be filled out manually by the user.

Any other specific “regulatory documents” can also be entered, which are automatically linked to the main document. Once data entry is completed, the user selects the action “Contract elements completed” and sets a date by which the contract must be ready. This automatically triggers a workflow, which assigns the documentation prepared to the Legal Office.

At this point, a task is assigned to the Legal Office, which must verify the elements needed to draw up the contract. If there is information missing, the document with the contract specifications returns to the Procurement Office and the previous workflow is repeated.

If, instead, the Legal Office has all the information it needs, it draws up the contract, starting with the draft generated initially by the Procurement Office, and supplements it using the elements defined in the previous phase. The Legal Office thus moves forward with the workflow, assigning the updated draft to the Procurement Office to carry out checks. Users of the Procurement Office involved in the flow receive a notification e-mail containing the details of the contract being prepared to check.

Through the action “check draft contract”, the Procurement Office can attach new documents and declare that the draft has been checked, moving the workflow forward and assigning a new task to the Legal Office to check the draft.

The contract returns to the Legal Office again, which checks any corrections made by the Procurement Office. If there are no further corrections to be made, the Legal Office confirms the definitive document. Globe thus generates the definitive PDF version of the document, also automatically affixing a barcode to it, which can be used to acquire the signed copy and automatically associate it with the original document.

At this point, the document returns under the responsibility of the Procurement Office, which sends the definitive contract to the supplier from Globe, through a pre-set, editable standard e-mail. The options also include sending via link, which lets you track when the supplier actually opens the document. When the supplier signs the contract and returns the original, the Procurement Office confirms that it has received the signed contract. Otherwise, it indicates whether the supplier has requested changes or rejected the contract. The signed contract is sent to the Legal Office, which scans it and archives it in Globe. The software associates it automatically as a signed copy of the original digital contract.

Flow 2: reports of call outs carried out by suppliers envisaged by contract

Once the signed contract has been received, through specific actions in Globe the Procurement Office adds:

  • Details on the department/plant on which the activities will be carried out
  • Details on the activities that will be carried out, as set out in the contract

For each activity, a supervisor must be selected (i.e. the person who has a direct relationship with the supplier and calculates the total balance of the activities, but does not know the rates) and an owner (who checks that the supervisor’s activities are correct) must be selected.

The supervisor enters the reports regarding the activities actually carried out, selecting from those previously entered by the Procurement Office. Globe provides the option to also attach the scan of the original report from the supplier.

Once the details have been entered, Globe will create an automatically generated PDF containing the information inserted via the form. At this point, a workflow is triggered for the supervisor to sign the report and the signed copy is attached to the original.

At regular intervals, the supervisor calculates the total balance of all the activities carried out in a specific period, through a specific action in Globe which automatically acquires the data of the reports entered and generates a summary document.

Thus, an automatic workflow is triggered for approval and signing by the supervisor of the automatically generated total balance. In this part of the flow, a document must be entered that certifies the regular performance of the works. At this point, another balance statement is generated, also containing the prices, destined for the owner. The balance statement, signed by the owner for approval, is sent to the Procurement Office, which forwards it to the supplier for acceptance.

One Suite, four platforms, unlimited solutions

Discover the platform we used to digitise the flows of creation and management of contracts with suppliers of an industrial group.

One Suite, four platforms, unlimited solutions

Discover the platform we used to digitise the flows of creation and management of contracts with suppliers of an industrial group.

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