Which problems are addressed?
In today’s enterprise, the sheer volume of contracts and the current state of each contract at any given time can have negative ripple effects on all parties when not properly managed. Traditionally staff was assigned to review contractual terms periodically and audit adherence in the organization. The expense to perform this flawlessly can be astronomical.
There are many problems that emerge when contracts go unmanaged: Avoidable costs, delayed revenue, compliance risks, and unmet obligations can all stem from poor management of contracts. These issues can manifest themselves at any stage of that life cycle:
- Lengthy negotiation and approval cycles leading to missed deadlines
- Document edits lost through multiple reviews
- Manual processes for filing and placement
- Contributions of multiple people create challenges when merging their work
- Revenue leakage from under-billed services or incorrect pricing
- Searching costs
- Noncompliance with contract obligations
- Lack of information contributing to costly, unwanted renewals
- No performance measurement
- Post termination obligations
- Informing the organization of the severed relationship