Risk Of Not Using Software For Contract Management Sourcing
CONTRACT MANAGEMENT SOURCING
The complexity of todays global supply chains and rapidly evolving technology makes contract management and sourcing an increasingly complicated endeavor. Too often, reliance on manual processes and inadequate systems put organizations at risk of misstepping in their sourcing endeavors, leaving them vulnerable to countless issues in the areas of cost containment, compliance, productivity, and enterprise risk management. As Finance Executives seek to manage their sources and procurement with best-in-class solutions, it pays to look closely into software for contract management and sourcing.
Manual contract management processes lack the ability to greatly reduce sourcing and procurement efforts. manual approach is labor-intensive, with staff expending significant time and effort to ensure accurate contract execution and managing. In addition, having to manually generate contracts, source suppliers, purchase services, or approve contracts may invite numerous human-sourced errors due to factors such as data entry mistakes, typographical errors, and the inability to quickly locate (or worse, track) the primary documents. By not using software for contract management sourcing, organizations face heightened risk of increased costs in time, effort and money as well as in potential noncompliance with both internal policies and external regulations due to errors or omissions in the tedious process of document creation and management.
In addition to the risks associated with manual contract management processes, failure to have access to reliable intelligence can also impair sourcing and procurement decisions. Without advanced tools, software, and analytics available to better understand their organizations’ contracts and supplier information, companies may find themselves unable to efficiently search and monitor relevant supply chain information, as well as track, generate, and/or store contracts. Furthermore, having access to only limited or outdated data can lead to unexpected costs and lower-than-optimal savings due to organizations’ being unaware of certain market or pricing trends.
Source-to-pay software solutions can help organizations to not only minimize manual processes but also to identify the best options for contract sourcing. This type of technology combines the latest sourcing capabilities and best-in-class analytics with modern platform for supplier risk management, contract management and automation of low-value processes. Companies are able to get the most value from source-to-pay solutions by running efficient sourcing events, analyzing supplier spend, and monitoring supplier performance more effectively and with greater accuracy. Risk is minimized as contracts and data are managed and stored securely in the same environment.
Source-to-pay offerings can help Finance Executives to keep their organizational costs in check and regulatory compliance top of mind. Acting as an all-in-one, comprehensive platform, the solution processes supplier selection quick, ensuring that the process can keep up with market changes and that contract terms are properly analyzed and negotiated, with any risks clearly determined. This will result in cost containment, enhanced compliance, and improved productivity all key elements of optimizing the entire procurement process. Companies that employ source-to-pay software for their contract management and sourcing are able to not only reduce the likelihood of costly errors or discrepancies but also maximize savings by properly recognizing and exploiting market dynamics.
By taking the time to assess and patiently evaluate the different software solutions available, organizations can equip themselves with the intelligence necessary to facilitate effective decisions during the contracting and sourcing process, making sure that their organizations stay on track to reach their goals. For those keen to ensure their contract management and sourcing systems and processes stay optimized and their risk minimized, source-to-pay software is must for any modern organization.
