SayPro Job Description & Tasks:
Reviewing Supplier Contracts and Agreements: Risk Assessment: Identify potential risks in supplier agreements, such as unfavorable payment terms, delivery schedules, or performance metrics. Take proactive steps to mitigate these risks
Position Title: Supplier Contract Risk Manager (SCRM)
Department: Supply Chain Management (SCM)
Reports To: SCM Director / Risk Management Manager
Location: SayPro Headquarters (or remote, as applicable)
Job Type: Full-Time
Salary: Competitive, based on experience
Role Overview:
The Supplier Contract Risk Manager at SayPro is responsible for assessing and managing potential risks within supplier contracts and agreements. This role focuses on identifying potential liabilities, unfavorable terms, and operational risks that could impact the company’s operations, financial health, or supplier relationships. The role requires a proactive approach to mitigating these risks through contract revisions, negotiating favorable terms, and ensuring that SayPro’s interests are fully protected throughout the contract lifecycle. The position also involves working closely with cross-functional teams such as procurement, legal, finance, and marketing to ensure all risks are identified and managed effectively.
Key Responsibilities:
1. Identifying and Assessing Risks in Supplier Contracts:
- Risk Identification: Conduct thorough reviews of supplier contracts to identify potential risks related to payment terms, delivery schedules, performance metrics, intellectual property, legal compliance, financial stability of suppliers, and other contractual obligations.
- Financial Risk: Identify risks in the payment terms, such as unfavorable or delayed payment schedules, penalties, or pricing fluctuations. Analyze the financial implications of these terms and propose modifications to reduce risk.
- Operational Risk: Review clauses related to supplier performance, delivery schedules, and product quality to ensure that they do not create risks for SayPro’s supply chain operations. Identify any unrealistic performance expectations or delivery timelines that could jeopardize business continuity.
- Legal and Regulatory Risks: Assess potential legal risks, including non-compliance with industry standards, laws, or environmental regulations. Collaborate with the legal department to ensure that all legal obligations are met and that terms are compliant with regulations.
- Supply Chain Disruptions: Identify any risks related to supplier capacity, resource availability, or geopolitical factors that could disrupt supply chains or delay deliveries. Assess the financial health of suppliers and their ability to meet long-term commitments.
2. Mitigating and Managing Risks in Supplier Contracts:
- Proactive Risk Mitigation: Take proactive steps to address potential risks identified in supplier agreements. This may include recommending changes to terms or conditions, such as adjusting payment schedules, performance metrics, or delivery expectations, to mitigate financial or operational risks.
- Negotiation of Favorable Terms: Work closely with the procurement and legal teams to negotiate more favorable contract terms that reduce risks. This includes negotiating more flexible payment terms, clearer delivery schedules, better quality control clauses, and stronger performance guarantees from suppliers.
- Buffer Provisions: Advocate for the inclusion of buffer provisions, such as contingency plans or penalties for non-performance, to protect SayPro in case of supplier defaults or delays.
- Escalation Clauses: Recommend the inclusion of escalation clauses or options for contract termination in the event that certain risk thresholds are crossed (e.g., delivery delays, failure to meet agreed-upon quality levels).
3. SayPro Tenders, Bidding, Quotations, and Proposals:
- Risk Assessment in Tendering Process: Oversee the tendering and bidding process to ensure that potential risks are identified early in the proposal stage. Assess and review supplier bids for terms that may carry significant risks, such as overly aggressive pricing, unrealistic delivery times, or weak performance metrics.
- Bidder Risk Profiles: Conduct risk assessments on prospective suppliers during the bidding phase to evaluate their financial stability, operational capacity, and history of performance. Ensure that potential risks associated with new or less-established suppliers are adequately addressed.
- Supplier Selection Criteria: Collaborate with procurement and marketing teams to integrate risk factors into the supplier selection process. Establish clear risk management criteria that prioritize suppliers with proven stability, performance reliability, and legal compliance.
4. Risk Management in SayPro Marketing Royalty SCM:
- Royalty Payment and Compliance Risk: In collaboration with the Marketing Royalty SCM team, assess risks associated with royalty agreements and payments, ensuring that the terms are fair and compliant with intellectual property laws. Identify any risks related to late payments, audit discrepancies, or miscalculations of royalties.
- Intellectual Property (IP) Risk: Review supplier agreements for clauses that involve intellectual property, ensuring that SayPro’s IP rights are adequately protected. Mitigate risks related to IP misuse or infringement by enforcing strong confidentiality and licensing terms in contracts.
- Risk of Overpayment: Identify and prevent the risk of overpayment for royalty fees or licensing agreements by ensuring the payment structure aligns with the actual usage or sales volume. Implement safeguards to monitor and correct any discrepancies in payment calculations.
5. Monitoring and Reporting Risk Exposure:
- Risk Monitoring: Continuously monitor supplier performance, delivery schedules, and compliance with contractual terms. Track any risks that materialize during the course of a contract and work with cross-functional teams to develop strategies to mitigate the impact.
- Key Risk Indicators: Establish and track Key Risk Indicators (KRIs) related to supplier performance, financial health, compliance, and delivery timelines. Use these indicators to predict potential disruptions and take preemptive actions to mitigate risks.
- Risk Reporting: Provide regular risk reports to senior management, outlining potential risks identified in active contracts, mitigation strategies in place, and any unresolved issues that require immediate attention. Update the management team on the status of risk mitigation efforts.
6. Contract Renewal, Amendments, and Risk Review:
- Contract Renewal Reviews: Before contract renewals or extensions, conduct a comprehensive risk assessment of existing supplier contracts to ensure that any risks previously identified have been addressed. This includes reviewing performance, compliance, and any changes in the supplier’s financial or operational stability.
- Amendment Risk Assessment: When contract amendments are proposed, assess the potential risks introduced by the changes. Ensure that any amendments or revisions align with SayPro’s risk tolerance and business goals.
7. Cross-Functional Collaboration and Training:
- Collaboration with Legal, Procurement, and Finance Teams: Work closely with the legal, procurement, finance, and marketing teams to ensure that risk management strategies are incorporated into supplier contracts. Collaborate to address issues that arise during contract negotiation, performance monitoring, and dispute resolution.
- Training & Awareness: Provide training to procurement and other teams involved in contract management on how to identify, assess, and mitigate risks during contract negotiations and supplier selection.
Skills and Qualifications:
- Education:
- Bachelor’s degree in Business Administration, Supply Chain Management, Risk Management, Finance, or related field.
- A certification in Risk Management (such as CRM or FRM) or Contract Management (such as CPSM) is highly desirable.
- Experience:
- At least 5-7 years of experience in risk management, contract management, procurement, or supply chain management, with a focus on supplier contracts.
- Experience in identifying and mitigating contractual risks, particularly related to supplier agreements, performance, delivery, and payments.
- Key Competencies:
- Risk Assessment Expertise: Ability to identify potential risks across various dimensions, including financial, operational, and legal.
- Negotiation Skills: Skilled in negotiating contract terms that minimize risk exposure and protect the company’s interests.
- Analytical Skills: Strong ability to analyze complex contracts, financial data, and supplier performance reports to identify risk factors.
- Attention to Detail: Exceptional attention to detail, particularly when reviewing complex contract terms and conditions.
- Communication Skills: Strong verbal and written communication skills for articulating risk assessments and recommendations to senior management and other stakeholders.
- Contract Management Software: Proficiency in contract management software and tools for tracking contracts, risk factors, and mitigation strategies.
- Personal Attributes:
- Strong problem-solving skills and a proactive approach to risk management.
- Ability to work effectively under pressure and manage multiple contracts and risk factors simultaneously.
- Collaborative team player with a focus on working cross-functionally to achieve risk mitigation goals.
Work Environment:
- SayPro offers a dynamic and fast-paced work environment where proactive risk management is essential to the company’s success.
- The role requires constant communication with multiple departments, including procurement, finance, legal, and marketing, to ensure a unified approach to risk mitigation.
- The position may offer both office-based and remote work options, depending on SayPro’s current work policies.
The Supplier Contract Risk Manager role at SayPro is essential in identifying and mitigating risks related to supplier contracts. By proactively assessing risks, negotiating favorable terms, and ensuring robust contract management, this position plays a critical role in protecting SayPro from financial, operational, and legal disruptions while ensuring that supplier relationships are managed effectively and in the company’s best interest.
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