Your contract management process may be ready for a change.
In today’s world, many organizations are challenged in managing the various contracts and associated documents inherent to their business. Not only are contract documents managed by disparate areas and departments within the institution, they are typically located in file cabinets, boxes or dusty shelves once they have been signed off and executed.
Since contracts are often negotiated, distributed and held by the originating areas, many organizations struggle in leveraging existing contracts. Typically, organizations have multiple contracts with outside suppliers in the same category, resulting in dilution of spend, higher costs, redundant processes and inability to properly manage renewal schedules as contracts expire. Many organizations resort to using spreadsheets or local database tools to attempt to manage contract effective dates but can easily lose track of renewal dates as contracts expire. This can result in lost opportunity in saving and services. Additionally, this could cause the organization to become non-compliant with legislation and regulations for managing diversity, small business and other various contracting requirements.
With a contract management solution, institutions can optimize their contract management process through proper approval routing, signature controls and tracking. A single repository can be created to house all contracts digitally, allowing for an easy way to search for existing contracts, as well as track any changes that may occur through the contract’s lifespan. A contract management solution can easily pay for itself by notifying contract managers of approaching renewal and termination dates. With this feature, contracts and supporting documentation are reviewed and evaluated long before they expire,n minimizing the risk of leaving dollars on the table. A contract management solution can also drive savings by automating processes and reducing man hours needed to complete necessary tasks.
If you are currently managing contracts on a spreadsheet or local database, it might be time to consider a solution to improve transparency and streamline the administration of the hundreds of contracts currently floating around your organization. In addition to the money and time savings, a contract management solution will increase productivity and reduce frustrations at all levels.
Looking for a Contract Management solution? Check out ESM Solutions’ offerings in a free demo.