Fines and penalties, missed deadlines, losses due to overlooked obligations, invalid contracts – these are some of the challenges that an organisation can avoid with better contract management.
Research by the International Association for Contract & Commercial Management (IACCM) notes that poor contract management is costing companies an average of nine percent of their annual revenues. For some companies this can mean the difference between failure and prosperity.
To successfully manage contracts and minimise risk, organisations depend on easy access to information and important work tasks. Many are leveraging content services platforms to transform contract management efforts, equipping their company to better handle contract requests and related activities, and experience faster, more consistent processes.
One challenge these organisations still face is information siloes and disconnected data, which leads to mismanaged negotiations, reviews and approvals.
Storing contract information in a central repository, like one provided by a content services platform, improves the transparency, security and searchability of the entire contract management process.
It also equips personnel with a 360-degree view of all contract-related information and activities, including executed contracts, revisions, supporting data and documents, correspondence, expiration/ renewal dates and personnel ownership details. This eliminates the need to jump between multiple applications to locate different types of information, thereby increasing employee productivity. The best solutions also feature flexible security options to customise who can access contract information and the ability to create unique contract identifiers to support easy search and retrieval.
A case management-based solution manages the complete contract lifecycle, automating predictable steps such as standardised requests, approval processes, notifications and task assignments, thereby empowering staff to complete knowledge-driven work.
Standardisation within the contract request process ensures the right data is collected at the start, depending on the requested contract type. A library of contract templates ensures that employees create contracts consistently and accurately track and manage negotiations. Throughout the process, the content services platform tracks required documents missing from the system.
By automatically routing contracts to the right individuals, the content services platform enables faster, more efficient reviews and approvals.
Personnel access contracts and complete reviews with ease – whether in the office, via mobile devices or directly from line-of-business applications. Electronic signatures and cloud-based signature solutions improve the efficiency and security of contract execution.
A content services platform also equips personnel to effectively manage post-contract obligations, facilitating timely delivery of information, flagging specific terms on execution and notifying the right people to ensure provisions are met. It improves the handling of expirations and renewals, providing insight into contracts near expiration and sending reminders as due dates approach. This keeps the process moving while minimising the risk of noncompliance penalties and missed opportunities for renegotiation.
With an advanced content services platform, manager and legal departments have full visibility into the contract process, from a history of interactions and modifications, to a clear view of current wok and upcoming obligations. This allows supervisors to quickly identify and eliminate bottlenecks, balance workloads and prioritise the order of contract processing – supporting continuous improvement.
In summary, a content services platform accelerates cycle times, improves responsiveness and creates value across the organisation through better contract processes. It helps minimise risk and supports compliance by tracking all activities, monitoring performance and ensuring information security.