Contracts should be considered assets, and as such they can optimize an organization’s process to maximize the value they represent. The bottom line is this: There are few things all businesses – irrespective of size, industry and region – have in common, and one of those things is that they all operate based on a foundation of contracts. This is the precise reason experts such as Quantum regularly recommend businesses put in place a contracts management system.
Contracts management can be best described as the process of managing contract creation, execution and analysis to maximize financial and operational performance at a company, all while reducing monetary risk. However, this management implementation sometimes proves to be quite the time-consuming element of business, and this facilitates the need for an automated and effective contracts management system.
A solid contracts management system is realized in the form of powerful contracts management software, which provides the necessary insight into contract data, facilitates collaboration between parties and saves time and cost with negligible risks.
Quantum Fun Fact: A report once stated that ineffective contracts management could cost businesses $100 billion per year in missed savings opportunities.
An advanced management software implementation is essential to achieve success with everything from global expansion efforts to product launches, hiring and other events.
The following represent the top reasons a management software system is important.
- Contract Expiration – An advanced management software system factors in expiration dates so it can render a decision alert to the user.
- Document Digitalization – With many organizations still using paper for documentation, inducting an advanced management software is a “lean” method to embrace technology and improve the environment; this document “digitalization” facilitates accessible and central examination at any given time, not only for desktop applications but for on-the-go products like mobile devices.
- Contract Authoring – With an advanced management solution in place, authoring contracts becomes easy and helps avoid repetition.
- Automatic Booking – An advanced contracts management software system boasts the ability of automated invoice processing, and with it, a purchase invoice can be easily matched to contractual agreements.
- Performance Evaluation – An advanced contracts management system helps with the insight required to evaluate supplier performance, with such information assisting with the decision to continue with a particular supplier – or not.
As we begin a new year, it is smart for organizations to improve their contracts management system early on, because later, it will be too late to understand the nuances of an advanced system when the world would be extracting maximum value already.
For more information, contact Quantum today.