The disparate and reactive nature of contract management today means the following tidbits of information may be insights into issues occurring right now in your organization. Perhaps it is time to do something about it.
Without monitoring financial status against contract progress and milestones, your Suppliers may be over charging, underperforming, and being paid incorrect sums of money.
Ineffective customer contract management leads to an inability to properly renew and service customer contracts, lower revenues and poor relationships.
A systems approach to contract management means having your corporate knowledge in a central repository, accessible to those who need it. Don?t rely on people?s memory.
The time and effort you spend on negotiating favorable terms and conditions in contracts is wasted if you are not proactively managing compliance to those terms and conditions. You are just wasting money.
Visibility into risk exposure and financial commitments is impossible without a central repository of contract information. Running multiple decentralized contracts ?registers? does not allow for efficient sharing of information, corporate policy compliance, and consistency. Managers have to tap multiple sources and systems to achieve whole organization reporting.
An inability to track and measure what you currently do means that you will be unable to show continuous improvement, because you have nothing ?concrete? to build on and no way to judge supplier effectiveness.
With inefficient and cumbersome processes there will be less time available to communicate directly during negotiations and contract delivery, and more time wasted trawling through spreadsheets.
10% of contracts are lost, never to be found. If you add the time spent looking to the time it takes you to find an agreement that you actually have, there are a lot of wasted hours that could be saved with a contract management system.
If you are not following automated processes for contract development and delivery then poorly negotiated contracts and non-compliance to committed terms and conditions can lead to costly litigation.
Good contract management software systems remind you as commercially critical renewal dates and trigger points approach, allowing you to terminate contracts that have passed their usefulness and renegotiate agreements that are still required. Failure to be timely in this approach can lead to errors and a lot of wasted money.
Because data double handling is statistically proven to create errors, you need an end-to-end contract management system that keeps all your data together and automates the whole contract lifecycle across each disparate area of your business.
Paper-based filing systems can see us wasting hours and hours just looking for contracts and other file notes and correspondence. This wasted time reduces productivity and costs us money.
As contractual disputes arise, only the strong, or those who have detailed chronologies and records of correspondence and performance, will survive the next round.
Organizations that fail to proactively manage the delivery of contracts in order to realize their inherent value, are failing to recognize that expenditure has a direct and serious impact on profit.
If a contract is worth executing it is worth executing quickly. The longer we spend in the pre-contract phase, the longer we are missing out on the post execution benefits of the deal.
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