Give your organization a clear, consistent process for optimizing contract management.
According to the IACCM (International Association of Contract & Commercial Management), two-thirds of participants at their conference a few years ago admitted that their companies lack a clear, consistent workflow for contracting. Some had no formal definition, while others had wide variations between countries or operating units. Since contracts are the most fundamental part of doing business, not having your workflow in high gear means your organization is going to sputter and stall.
Among the pitfalls that can arise when contracting workflow isn’t well-defined or managed are that organizations lose revenue and valuable cycle time. A lack of clarity about the scope and goals of a contract can lead to wasted time, increased risk and, ultimately, legal disputes. Combine this with the competitive exposure of protracted negotiations and the poor handling of post-award contract lifecycle management, and your contract value could lose an average 9.2%.
Achieving contract value through improved workflow.
On the other hand, those with effective contract workflow management (i.e., technology) are achieving superior business results through improved contract value. Today, with contracts increasingly complex and specialized, relying on manual processes, spreadsheets, word docs and limited software programs mean the risk of potential damage from lack of oversight and errors is higher than ever.
As more businesses recognize that an effective workflow is absolutely critical to avoid value loss (and increased risk), they are looking to implement an efficient solution to successfully manage the contracting process.
Cloud-based contract lifecycle management can streamline and automate the process — from sourcing to procurement and supplier management. Features such as process automation, a central repository, integrated Master Data and metadata, configurable clause libraries and templates, secure e-signatures, and a built-in approval flow take the contract through clearly defined stages as it is negotiated, executed, and managed.
Mitigate risk, accelerate opportunity.
Effective contract workflow requires setting up clear, consistent steps across departments that don’t allow a contract to go forward unless the right people have seen and approved it at the right time. When stakeholders aren’t fully engaged in the process, their interests may be misaligned. Therefore, stakeholder engagement is critical for ensuring that the contract meets the needs of all parties — whether it’s senior management, suppliers, partners, business lines, etc.
Of course, the key to contract management solutions that automate business processes is completely integrated data. A single source of consistent, valid data across the organization means the right information is feeding the contract documents in the first place. Supplier agreements, sourcing needs, sales contracts and other documents with real-time access to data allow an organization to seize revenue and value-generating opportunities with minimal delays (and errors).
It’s what also keeps the workflow flowing smoothly; when everyone has confidence that the right information is feeding the contract and related documents, then delays are minimized from stage to stage.
If you’re ready to experience the possibilities for fast, seamless value-generating workflow in your contract process, schedule a no-obligation personalized demonstration of modular, integrated contract management on the Corcentric Platform.