How much is the contract worth? How much value does your business gain from that contract? Most importantly, are those two numbers the same or similar?
A contract doesn’t just outline the negotiated details between you and a vendor; the contract details and fulfillment of the agreement determine the success and survival of your business relationship with a vendor.
It’s important then to be able to analyze the value of the contract to determine the health and continuation of the relationship. Do you have a system for evaluating a contract’s value, particularly one that’s up for renewal?