The benefits of contract management
Greater visibility of supplier performance
Using a contract management solution gives you greater insight into contract performance, compliance, costs and savings. The system will generate automated reports which your team can use to manage your suppliers. You can measure your suppliers' performance against KPIs and efficiently track the costs associated with each contract. For contract renewals, you can then use these insights to decide whether to continue with the same supplier. Alternatively, you can terminate the relationship and procure another supplier.
Better collaboration and communication
Contract management encourages collaboration and communication, both internally and externally. Internally, you will have business units which might not deal with each other regularly, such as finance and business development. Through the procurement cycle, they will have to collaborate on contract management. Externally, your contract management system will act as a communication portal where all communication is stored, creating an audit trail. You can set up automatic reminders to prompt regular reviews with suppliers to measure contract performance .
Meets compliance and security requirements
Contract management makes it easier to meet your compliance requirements . All aspects of contract management, from documents to details of meetings and communications, to relevant transactional data, are stored centrally. This gives you a complete audit trail of the contract history. Automatic reports can be generated whenever you need them.
We store your documents in a secure environment, only accessible when you grant permission. You can also enhance security by restricting access to sensitive or confidential contracts and implementing different sign off levels for each contract.
Risk mitigation and management
You need visibility of your contracts and how they are performing to manage risks such as increased costs, loss of revenue and non-performance. A contract management system allows you to incorporate standard clauses into your contracts, ensuring you include appropriate warranties and risk protection clauses. You can also manage risk by scheduling regular review reminders for contracts and associated risks. Automating workflow approval will make sure people with the requisite authority level are approving the contracts.
Enhances operational efficiency
Automating your contract management cycle will improve your overall operational efficiency. The system carries out routine tasks such as diary input, reducing errors and improving accuracy. Automatic reminders will ensure you never miss a renewal date. You’ll save time on report generation and reviewing documents to locate information. Also, standard templates can be set up for common contracts, saving your legal team resources for final review rather than contract creation.
