August 18, 2022 at 3:03 pm #292532SIG AdministratorKeymaster
When there’s compliance or regulatory change(s), such as GDPR or similar, that impact agreement terms across your supply base, how do you typically operationalize this required update?
1. Specifically, do you carve out a separate workstream, or initiative, to update vendor agreements or include that as part of renewal process?
2. Do you use any tools or outsourcing partner to facilitate this?September 20, 2022 at 8:00 pm #295527[email protected]Guest
- Specifically, do you carve out a separate workstream, or initiative, to update vendor agreements or include that as part of renewal process?
It would depend upon the when the reg is effective. If effective within 90 days, we share the reg with our vendors and notify them that we need to amend the contract per the reg. Most of them know about the reg anyway because it effects their industry.
If we have time to wait for the contract to renew, then we include the change within the renewal period and amend the contract as necessary.
- Do you use any tools or outsourcing partner to facilitate this?
We are able to use Venminder. We can pull the contracts by “tags” aka industries, service types, etc.
I can explain more in detail. Let me know if you would like to discuss.September 22, 2022 at 7:31 pm #295528AnonymousGuest
We usually renew vendor agreements when an RFP occurs or in advance of expiration date.
Our legal department helps to facilitate this process.
We utilize SpringCM for this.September 22, 2022 at 7:34 pm #295529AnonymousGuest
It depends upon the magnitude and urgency of the change. Typically falls into 1 of 2 buckets
1- The change significant and needs to be addressed right away. We will issue amendments to all contracts as soon as possible.
2- The change isn’t as urgent. We incorporate a process to address the needed changes the next time we have to touch the contract in some fashion
Hope this helpsSeptember 22, 2022 at 7:37 pm #295530AnonymousGuest
1) We have traditionally used separate workstreams and initiatives to make this happen. We don’t have the staff on our typical teams to handle that kind of volume.
2) We have used a combination of traditional IT consulting firms and legal outsourcing to handle staffing needs coupled with our existing contact management tools.September 22, 2022 at 7:41 pm #295531AnonymousGuest
We have this under a separate workstream
We do this with our own people and toolsSeptember 22, 2022 at 7:46 pm #295532AnonymousGuest
Most our supply base is in the US.
For generic federal requirements we flow them out to all US suppliers via our annual Representations and Certifications. All active US suppliers are required to complete these. We have a person in legal and one on my Procurement team that monitor and update our annual Reps & Certs. Most changes are effective in the future so it is very rare that we would have to go back verse just waiting till the next time the supplier recertifies.
We also maintain contract templates and terms and conditions supplements. Again, we have a person in legal and on my Procurement team that monitor and update these documents as requirements change. These documents are revision/date controlled so all new purchases are awarded based on the latest requirements. If we have an existing Master Service Agreement we would either issue an amendment to add the new requirement or in many cases just flow the new requirement in a task order issued under the MSA.September 23, 2022 at 2:11 pm #295533AnonymousGuest
1.Depends if the change affects any requirements (I am assuming this is a highly regulated environment such as a bank) – typically changes required are advertised well in advance.
2. It would be insane to go through thousands of contracts to evaluate whether they need to be amended or not
3. Outsourcing this activity would, in my opinion, be a mistake as the requirements probably affect either governance, performance, risk, or reporting issues, or all the above
4. In my case, we would start with evaluating how the change affects the standard contract clauses we have, and perhaps, it might be as simple to issue a contract variance document
5. I am assuming that some suppliers would see this as an opportunity to invoke change procedures, citing higher payload, and try to increase supplier revenue streams, so be careful
6. Beyond that, there are elements of a robust change management plan that might facilitate this activity and provide clear RACI guidelines to both the organization and its various structures, as well as vendors.
Thanks to this generous Member, current SIG Members have access to a premier Change Management Framework resource by clicking here.September 23, 2022 at 3:37 pm #295534AnonymousGuest
In Martin Brower we use our own resources to review and change the contracts. It is a joint task of our Purchasing and Compliance team.October 6, 2022 at 2:29 pm #295558[email protected]Guest
Thank you, Karen!!!
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