Procurement is the initial phase where needs are identified, suppliers are sourced, and contracts are negotiated to obtain goods or services. Contract management comes into play later in the procurement process, focusing on making sure that the signed contracts are fulfilled as intended.

While procurement focuses on building relationships with suppliers and establishing contract terms, contract management monitors supplier performance, compliance, and key performance indicators (KPIs) to ensure that all contractual obligations are fulfilled, delivering the expected value throughout the contract’s lifespan.

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