Clever Contract Lifecycle Management
The key word in the term contract lifecycle management is “lifecycle”. The procurement process – when done strategically – starts with the planning of all your yearly procurement needs. Followed by drafting tender documents and negotiating with the desired suppliers, the process seemingly culminates in signing the contract. However, this is but the start of the workings of a contract: It works towards your needs for the entirety of its duration and you need to make sure it does!
Methodical contract management is of paramount importance in protecting and developing any business. Clever contract lifecycle management means you´re making sure you´re getting exactly what you negotiated for. You´ll know both parties rights and duties, contract terms and conditions. And you´ll get more out of your contracts.
We urge our clients to take their time in not just finding the right partners and suppliers but also in preparing in advance for the management of all their contracts. Time spent now is a problem avoided in the future.
Implementing a digital contract lifecycle management can lead to significant improvements in cost savings and efficiency. You´ll be able to:
- minimize risks
- improve financial optimization
- increase operational effectiveness
According to Forrester´s research contract optimization offers recurring benefits: “[…] businesses that move on to contract drafting, integration into transaction systems, and contract optimization are recurring and therefore will keep growing over time.”
Reduced Risks and Improved Compliance
Having in place a systematic contract lifecycle management reduces the risks involved with contracts by helping you to stay on top of important dates. When does the contract end? Is there a penalty owed if conditions are not met upon the agreed timeframe?
Consider also the importance of being able to prove your compliance via a digital contract management. Traceability is much easier with a clear digital archive of all your actions.
CONTRACT LIFECYCLE MANAGEMENT DELIVERS CONTRACTING INTELLIGENCE AND EFFECTIVENESS
Improved Financial Decision Making
Having a clearly identified and defined contract lifecycle management will help you make more financially savvy decisions. You´ll never be stuck with an automatically renewed contract, for example, and you´ll be buying from your chosen suppliers just when you need to at a pre-determined prices. No surprises, no costly deviations.
It has also been said that linking your sourcing and contracting processes will more likely result in increased savings. High performing procurement teams have been known to hit an annual savings rate 37% higher than the average.
Boosting the Effectiveness of Your Operations
Always rely on comparable data when making business decisions, we say. Digitally stored documents and the data drawn from them will make you more efficient over time and will help you make forecasts and plans well ahead.
Another benefit of using a digital contracting platform is the amount of structured data it amasses. Structured data has the advantage of being easily entered, stored, queried and analyzed.
The Cloudia Solution
Our centralized and automated Cloudia Contract gives you control over all your contracts and contracting process. Increase your profitability by taking maximum advantage of your contracts!