No matter what the specialty of any business is, if they are not well prepared to handle the flow of contracts, the organizational goals will never be achieved on time. Not only this, a poor contract lifecycle management process will impact supplier relationships negatively and result in a financial crisis for the company.
This makes it imperative for companies to manage thousands of complex contracts and take proactive decisions. To do so, they require a potent contract lifecycle management process to resolve their cross-functional problems without slowing down their whole sales cycle. Also, they need a process to determine how contracts move through the contract lifecycle management system during implementation.
At SpendEdge, we understand the impact that an effective contract lifecycle management can have on the internal processes of the company. Therefore, our team of experts has highlighted five key benefits of contract lifecycle management that companies tend to overlook.
Are cross-functional problems hindering your business growth? Get in touch with our experts and leverage the benefits of contract management solutions.
Benefits of contract lifecycle management
Standardization of process
Contract lifecycle management is an arduous task. It involves following various steps such as:
- Generating quotes using contract relationship management system
- Binding of a contract using e- sign
- Making sales and supplying products
- Storing contract in a database
- Tracking the contract
Contract lifecycle management allows companies to streamline contracts on the basis of their operations and track them efficiently. Also, with the help of contract lifecycle management, companies can manage all the above-mentioned steps of contracts easily without missing the deadline.
Reduction of manual work
An effective contract lifecycle management system possesses the capabilities to manage contracts from both the front and back end. This considerably reduces the time required for various departments to work on the contract. Also, it ensures that the organization does not skip any step in the contract’s lifecycle and run through the entire sales process without needing to focus on manual tasks.
Streamlining processes in contract administration helps different departments in the organization to work in unison and make contracts more profitable. In the absence of a contract lifecycle management process, negotiators may try to fix higher prices for goods and services. However, with the standardization of process, multiple minds can come together to devise a financially viable contract.
Interested in developing a financially viable contract? Request a free proposal and know how our experts can help your organization by improving contract lifecycle management.
Companies can never ensure if the terms of a contract are met or not until they know the terms precisely. With contract lifecycle management, organizations can critically scrutinize the number of active contracts, set reminders for deadlines, and have a clear overview of each individual contract. This will help them to address salient terms and conditions and monitor compliance in a difficult situation.
Companies having effective contract lifecycle management can easily identify the risks associated with the contract lifecycle. These risks can be in form of penalties, missed deadlines, lost revenues or maverick pricing. Contract management solutions help companies to identify and prevent all such risks.
What is the importance of contract management?
They are many opportunities to save money, improve delivery and obtain products in the sourcing process that can lead to significant cost savings for companies. Enhancing contract lifecycle management will help companies to gauge those opportunities and limit organizational liabilities. Also increasing compliance with legal requirements will enable companies to determine the obscure terms that they may need at any given point of time.