More reasons to implement Contract Management Software
Recent studies about contract management solutions estimates that 80% of business-to-business transactions are governed by contractual agreements. However, according to research, the majority of enterprises are dissatisfied with their current contract management software. These findings are not surprising. At most companies, contracts have increase both in number and complexity, involving thousands of products and intricate terms and legal clauses that govern a myriad of factors, including price, service level, requirements, warranties, payments, incentives and penalties.Companies are annually losing billions of dollars because of contract leakage, unredeemed rebates, inefficient processes and suboptimal contract terms. Researchers suggests that the quickest and most effective method for achieving contract optimization is through the use of a contract management solution that can automate the contract management life cycle, provide an active repository for all contracts, integrate with other business systems, and deliver tools for monitoring and analysis of contract management performance.
Unfortunately, researchers suggests that most companies are ill equipped to effectively create, execute, or manage contracts in an optimal manner. In fact, contract management remains a largely fragmented activity at most companies. We can identify four barriers that trip up enterprise on the path to effective contract management:
1. Lack of formalized contract management procedures,
2. Inefficient, labor-intensive processes,
3. Limited visibility into corporate contracts,
4. Ineffective monitoring and management of contract compliance
posted by Igor Gramc @ 4:48 AM
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