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Key Strategies to Drive Greater Value from Your Contract Management Process

SpendEdge, a leading provider of category market intelligence solutions, has announced the completion of their latest presentation on key strategies to drive greater value from your contract management process. The article offers detailed insights into the challenges faced by companies in improving the contract management process. The article also highlights how implementing contract management best practices can help you to standardize processes, enhance spend visibility, and reduce maverick spending.

Is Your Business Facing Contract Management Red Flags?

In a rapidly evolving business environment, contract management is crucial for companies to control procurement costs, forecast expected revenues, and manage suppliers and risks. However, contract lifecycle management is not an easy process due to the involvement of different third-party contracts such as purchase, sales, and outsourcing agreements.

This article will help you understand how the inability to manage contracts that lack visibility can impact the contract lifecycle management. Also, it highlights how delay in the approval process and stringent compliance requirements can become a major challenge for businesses in improving the process.

Best Practices to Improve Your Contract Management Process

Improving the contract management process is often the responsibility of procurement organizations. But it is one of the most non-uniformly applied mandates in the realm of purchasing. Organizations who are good with contract authoring, negotiation, and administering individual contracts often fail in tracking and managing compliance to terms of the contract.

To help you get all these problems right, we have outlined few best practices. This article will help you realize how following a high-level of process compliance and integrating dedicated legal resources into the workflow can fix the loopholes in the contract management process. Also, it will provide key insights regarding the role of contract intake case tracker and workflow tool in creating a time-lagged record.

Ten Effective Ways to Get More Out of Contract Management

An efficient contract management process is crucial for companies to standardize processes, improve spend visibility and reduce maverick spending. However, you must agree that not many companies pay enough attention to numerous factors involved in different stages of contract management process.

To help you reap the above-mentioned benefits, you need to allocate budget, time, and resources for this area of the business. The article will help you gain some effective tips to improve the complete process. This will ensure that you have legal recourse if your supplier doesn’t deliver what you expected. The article also highlights how building flexible contracts, maintaining a good relationship with suppliers, and using KPIs can help you improve the process.

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Contract Management

A Comprehensive Guide to Contract Management – Challenges, Benefits, Stages and Best Practices

In procurement, contract management consistently rates as one of the top three issues for procurement managers. It offers great potential for procurement teams to make a difference for their organization. Having the ability to improve the contract management process will result in numerous business benefits – especially for organizations with direct supply lines dependent on longer-term service based contracts. It may even be the new frontier for procurement – the new place to generate real value for companies.

Challenges in Contract Management

Challenge 1: Legal Review

Legal review often takes a lot of time and this is the reason why companies try to circumvent legal review in the contract management process. It becomes a challenge for companies to review a 20-page contract when it’s only a few paragraphs that need legal advice. If not explained properly, it would take for legal review and business partners may ignore it altogether.

Challenge 2: Negotiation Terms

Negotiations can be a challenge in the contract management process. Any miscommunication in the negotiation process can lead to delayed revenues, longer lead times, and a reduction in profit margins for both parties. In addition, extending negotiations can also result in missed opportunities for companies. Therefore, it becomes critical for both parties to track each other’s involvement in the contract management process to avoid unnecessary delays.

Challenge 3: Poor Governance

Poor governance is one of the common challenges faced by companies during contract management. Lack of resources within organizations to maintain and monitor terms and requirements of a contract increases possibilities of risks. Also, it inhibits the implementation of new technologies, and delays renewals for contracts.

Challenge 4: Boilerplate Language

Boilerplate language refers to the standardized language used in the contracts. Although it speeds up the contract management process, it needs reviewal on a regular basis to meet compliance requirements. These provisions are extremely important and help determine how disputes would be resolved in case of any conflicts. This compels companies to leverage contract management services and amend the boilerplate language.


A Comprehensive Guide to Contract Management – Challenges, Benefits, Stages and Best Practices

Why Contract Lifecycle Management is a Blessing in Disguise for Businesses?

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.

Increased revenue

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 fabricating a financially viable contract?

Request a free proposal and know how our experts can help your organization by improving contract lifecycle management.

Compliance 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.

Risk management

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.

Enhancing contract lifecycle management help companies to achieve better savings and limit organizational liabilities. Request a free demo and know how our experts can assist you by getting the best possible terms during every purchase.


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Is Your Organization Facing These Contract Management Red Flags?

What is contract management process?

Contract management process is formulated to control, coordinate and streamline all stages in the contract lifecycle. It helps companies to enhance the performance of contracts, especially in procurement and sales. The contract lifecycle management tools also enable companies to forecast expected revenues, control procurement costs, and manage suppliers and risks.

However, contract lifecycle management (CLM) is not an easy process. There are various third-party contracts such as purchase agreements, outsourcing agreements, sales agreements, lease agreements, and licensing agreements that need to be managed. The absence of a well-defined contract lifecycle management process can have a substantial impact on the organization in the long-run.

Most companies now swear by contract lifecycle management services to avoid missing out on lucrative revenue opportunities. To avail the best contract lifecycle management services, get in touch with our experts. 

Common contract lifecycle management challenges

Inability to track contracts

It is difficult for companies to manage contracts that lack visibility.  Many companies tend to avoid contract lifecycle management process as it is time-consuming and costly. However, businesses must ensure that they have complete visibility of their legacy contracts before making enterprise-wide decisions. With relevant information, businesses can easily make amendments in contracts that will aid in contract management. Companies can even outsource contract management which helps them in contract execution and provide  detailed insights to make prudent decisions.

Delay in the approval process

Contract lifecycle management requires businesses to map out the process for different kinds of contract and identify the functional areas of the organization that need to be reviewed. This involves various departments of organizations such as operations, sales, legal, and finance. To have an efficient process, it is vital to examine the order of their approval as well. Also, it is crucial for functional areas to understand their tasks and responsibilities when a contract is assigned to them. These tasks are pertaining to editing, approving, rejecting, canceling, identifying next reviewers, and sending for signatures.

Is your organization facing contract management challenges?

Request a free proposal and know how our experts can help enhance your contract lifecycle management.

Regulatory compliance issues

Many industries are bound to adhere to stringent compliance requirements. This becomes a major challenge for businesses in the contract management process. Moreover, it increases approval cycle times substantially and contracts expenditure for firms. Also, it creates the need for firms to automate contract lifecycle management system, conduct internal compliance audits on an annual basis, and standardize the contract management process.

SpendEdge’s advantage

At SpendEdge, we improve contact visibility and support procurement managers right from the agreement in principle to contract execution and ensure that your organization doesn’t hit to the bottom line due to lost time and revenues. Our procurement experts also provide tailor-made contract lifecycle management solutions that can address the specific needs of your business. We also make sure that our legal documentation best supports the respective needs of companies.

In case, your contract lifecycle management solutions are proving to be ineffective in managing effective contracts to ensure compliance and minimizing risks, let our procurement experts help you. Request a free demo and start your free trial now.

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Procurement Intelligence Solutions for a Retail Company – A SpendEdge Success Story

Procurement Intelligence Solution Transforms Finance Operations and Enhances Supply Management

About the Client 

The client is an American multinational retail-clothing firm. With over 500+ stores, the company employs around 57,000 people globally.

The Business Challenge 

With changing consumer behavior and technological innovations, retailers across the globe are uncovering new ways to sustain from the disruption. Moreover, retail brands are coping with a long-term uptrend in commodity and other raw materials input prices, and rapidly shifting global supply chain. These mounting global supply chain complexity with retail markets is forcing retail companies to be more agile and react faster than other players in the market. This is where procurement intelligence comes into play. In today’s competitive market scenario, procurement intelligence is the key to establishing long-term strategic sourcing and supply management plans.


The Ultimate Guide to Achieve Effective Contract Management

Although the contract management process can be a time-consuming task, if properly managed, can be one of the most lucrative areas for businesses to build relationships and generate more revenue.

Contracts are essentially the foundation of all business relationships. However, the growing number of contracts consequently increases their complexity and amendments. So, it becomes challenging to manage the key information in the contracts. Contract management is the process that enables both parties to a contract to meet their obligation and deliver the objective required from the contracts.

A contract lifecycle management platform simplifies contract management processes by providing the ability to manage and avoid compliance issues and other risks through templates and approval workflows, deliver more revenue and faster with e-signatures, streamline negotiations with online redlining, and easily manage documents after they are signed. This eventually helps organizations grab opportunities that may otherwise have been missed.

Four Best Practices to Follow in Your Contract Management Process

Procurement organizations are often responsible for the contract management process, but this seems to be one of the most non-uniformly applied mandates in the realm of purchasing. Procurement organizations who have the responsibility to build a contract management process tend to do a pretty good job with contract authoring, negotiation, and administering individual contracts to incorporate changes but are less effective in tracking and managing compliance to terms of the contract and administering an overall contracts’ database. Furthermore, even for processes where procurement organizations can bring a high degree of value, there is a chance of variability in outcomes, cycle times, and end-user satisfaction. The conventional source of this problem is a lack of process control for contract management system and administration. The end result of these problems includes inconsistent service levels to internal clients and lack of credibility for procurement data. Procurement leaders looking to get all these problems right can leverage a number of best practices in their contract management system. Here are a few to get started:

Best Practices in Contract Management System

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Follow a simple and high-level process

For each contract management process, utilize a simple and high-level process. It will help you to avoid over-engineering and shelter a large set of situations in a manner that will reduce exceptions and not be over-burdensome. You need to work towards a high-level of process compliance in order to drive organizational control and discipline.

Implement a contract intake case tracker

For a better contract management system, it is important to implement a contract intake case tracker and workflow tool. Ideally, this process should be based on a web form, which can be recorded by procurement based on a phone call or an in-person request or completed directly by the requester. This will help in creating a time-tagged record to which relevant notes and documentation can be attached.

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Incorporate legal resources in the workflow

Integrating dedicated legal resources into the workflow can help you measure activities, volumes, and cycle times. This will help you in fixing the loopholes in the contract management process.

Have a dedicated contract management team

You must invest in a single dedicated team or resource to input all contracts into the contract database and manage the database. This is one of the best practices to control and enforce consistent standards of data.

SpendEdge’s contract management services help you drive greater value from your contracts by managing them more effectively. From contract negotiation and contract authoring to contract compliance and renewal or disposition, we can help you throughout the contract lifecycle. To learn more:

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