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| Wednesday, May 04, 2005 |
| Contract management software - why? |
What is main goal or what are the benefit's of implementing contract management software in the company :
Contracts are the foundation of nearly all business relationships
- Estimates indicate that 80% of business-to-business transactions are governed by contractual agreements
- The typical Fortune 1000 company maintains between 20,000 and 40,000 active contracts
- Companies are losing billions of dollars each year due to contract leakage, unredeemed rebates, inefficient processes and suboptimal contract terms
Contracts are the foundation of nearly all business relationships
- Estimates indicate that 80% of business-to-business transactions are governed by contractual agreements
- The typical Fortune 1000 company maintains between 20,000 and 40,000 active contracts
- Companies are losing billions of dollars each year due to contract leakage, unredeemed rebates, inefficient processes and suboptimal contract terms
Contracts are the foundation of nearly all business relationships
- Estimates indicate that 80% of business-to-business transactions are governed by contractual agreements
- The typical Fortune 1000 company maintains between 20,000 and 40,000 active contracts
- Companies are losing billions of dollars each year due to contract leakage, unredeemed rebates, inefficient processes and suboptimal contract terms
More than 80% of companies report that even locating a contract is difficult
- Many customer and supplier contracts are stored in filing cabinets or on the hard drives of individual (and often inaccessible) PCs across the enterprise
- Manual processes and fragmented business systems result in:
- Increased costs
- Poor collaboration
- Poor compliance
- Overcharging by suppliers
Companies should automate and standardize processes across the contract lifecycle
- Automating contract management processes will:
- Reduce negotiation cycle time
- Lower administration costs
- Improve compliance and analysis
- Standardizing contract procedures companywide will:
- Reduce contract risk
- Foster greater collaboration
- Enforce adherence to contract terms
Companies should enhance contract monitoring and analysis capabilities
- Increasing the frequency of compliance reviews will:
- Reduce maverick buying and evergreen renewals
- Minimize policy and regulatory non-compliance
- Improve performance risks and opportunities for savings
- Incorporating advanced analytics in contract performance analysis will:
- Optimize contracts and help identify new cost savings opportunities
- Drive compliance and assist with new regulatory reporting requirements
An effective Contract Lifecycle Management solution, like UpsideContract, can:
- Dramatically reduce material and service costs
- Cut process cycles in half
- Reduce contract administration costs
- Improve contract compliance
- Diminish operational and regulatory risk
- Increase revenues and profits
Igor Gramc @
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