The International Association for Contract and Trade Management has found that poor contract management can affect the bottom line by up to 9% of annual revenues. Manual processes, insufficient visibility, lack of verification of figures and inconsistent documentation introduce the risk of ‘revenue leakage’, price disputes, problematic relationships with suppliers and missed opportunities.
Here are five steps to solve these problems:
- Establish a centralized space for all information and documents.
- Create contract control systems: a high-performance ECM system will allow you to organize, find, complete and annotate them.
- Automate and eliminate bottlenecks. In this way you gain transparency, traceability and an increased processing speed.
- Digitize the process. It is impossible to compare and manage documents received by mail, fax, mail in different formats. Digitize everything to have a homogeneous standard.
- Proactively track expirations and renewals. Build a structured tracking system so that you are always one step ahead of contracts.
Through these 5 simple steps you can fix the existing problems in the contract management process.