If you don’t know your contracts, you don’t know your business.
If the contract is not in your contract management system, it doesn’t exist.
What contracts do you have, who are they between, and how do they expire? Who in responsible for each contract?
Why it is essential to develop contract management?
Contracts are a critical asset of your company and can easily exceed thousands in large organizations. Nearly all financial transactions and significant part of the other functions are based on contractual agreements, including their liabilities and obligations. An organization can easily improve its processes, cut costs, and quickly follow-up on the contract life cycle. Business functions today demand effective contract management.
A contract management system and effective contract processes save employees’ working time and resources and help them share contract information effectively throughout the organization – regardless of their office location or paper document archives’ location.
Contract administration benefits daily from simplifying access to contract data and documents. Effective contract management and the use of contract management systems help with forecasting future procurement needs and scheduling new rounds of requests for proposals from suppliers. Personnel changes will also impact contract management and contract responsibilities. When planning and implementing company transactions, comprehensive contract data, in electronic format, will help with these projects and provide a template for data room material.