Why do I need to create supplier contracts in SCOT?
After monitoring, evaluating and calculating your suppliers' performance in SCOT, you will want to share the results with them. This takes the form of Performance Reports which can be sent out as bulk email right from SCOT. In order to be able to use the bulk email function, you need to have a dedicated contract for each supplier created in SCOT.
If you have penalties set up for your suppliers, you will also want to calculate penalties and share them with suppliers. You need to have penalty fees and calculation levels set up in SCOT to calculate penalties for each supplier. Then, you can send out Penalty Reports to your suppliers directly from SCOT. In order to be able to calculate penalties and use the bulk email function, you need to have a dedicated contract for each supplier created in SCOT.
What type of contract to choose?
If you work only with performance reports, Performance Only contract type is the right one for you.
If you also have penalties in place, Active contract type needs to be used.
What's the difference between Master and Child Contracts?
Master contract is a general frame defining the main conditions which are applicable to a selected group of suppliers. Or even to all suppliers in a country. So you can have one or several Master Contracts for your country, depending on the business needs.
Child contract is specific to each supplier, so you need to define one contract for each supplier company. Child contract contains relevant information at supplier level, such as contact email addresses, calculation reference and penalty rates. Each child contract must be linked to a Master Contract.
