Risk Of Not Using Contract Management Software
CONTRACT MANAGEMENT LIFECYCLE SOFTWARE
As finance executive seeking to optimize the source-to-pay process, there exists the potential risk of not utilizing contract management lifecycle software. Neglecting to deploy software and instead relying on manual processes greatly inhibits the potential of true end-to-end visibility and comprehensive control over the entire contract management process.
When manual processes and, consequently, manual changing of data, are employed, there exists higher probability of errors occurring due to lack of control and oversight. The misapplication of numbers, whether it be intentional, imprudent, or just through human error, can lead to discrepancies in payments, contracts, and processes. These discrepancies can impact the overall success of the source-to-pay processes, introducing the risk that all subsequent payments and contracts can be invalidated from an oversight, compliance, or contractual perspective.
Furthermore, manual processes can also present an opportunity for fraud to occur. An individual or group with malicious intent can unwittingly introduce inaccurate data, creating “closed loop” of data that could ultimately become shielded from view and undetected.
The best way to guard against such risks is by deploying comprehensive and centralized contract management lifecycle software. The centralized digital repository enables the ability to have segmented access to different areas of the system, affording greater control over not only compliance and contractual agreements, but also the verification processes in place. The implementation of automated processes, along with the insight provided by audit trails and heightened vendor management, ensures that all transactions emanating from the system are accurate and error-free.
From an efficiency and cost perspective, the cost of errors, related to manual processes, can often outweigh the cost of employing software. Automation of processes can reduce labor costs, while an enforced network of checks and balances ensures that data is accurate and well-managed. Above all, decision making originates from real-time visibility and insights, with the C-suite able to make informed and strategic decisions with the knowledge that all necessary information is on-hand.
Therefore, not utilizing software for contract management lifecycle processes does inherently leave the C-suite vulnerable to the risk of errors, inaccuracies, and fraudulent activities. Therefore, the most prudent course of action is to invest in software that can automate, streamline, and secure the source-to-pay process.
