Contracts – managing the global explosion
Today, contracts are the foundation of our business lives. And rightly so. Contracts enable all of us – in our professional and in our personal lives – to agree, control, comply and manage our partner, supplier and client relationships.
The onset of globalisation has taken away many obstacles to business expansion. For many companies, globalisation has been responsible for an explosion in the number of contracts they hold, with a corresponding increase in the need for – and the time spent on – contract management. With an increase in the number of contracts comes increased opportunity for mis- management.
What is contract management?
If you think about it, the reason behind any contract is to safeguard the interests of every party – to protect an agreement made, with penalties if that agreement is breached. So, it is imperative you properly manage your contracts to protect yourself, your business and your relationships. This is easier said than done – most contracts are complex with a multitude of clauses, terms and schedules. Contracts have a complex lifecycle, from negotiation and inception to renewal or expiry. Inefficient contract processes can result in 5% to 40% losses on the value of a given deal. A rather sobering thought.
Navigate the world of contract management with the latest technology
In the digital age, manual management just does not cut it. The onset of technology – whether you love it or hate it – has implications for every aspect of our lives. If your company is groaning under the weight of a multitude of complex contracts, consider how technology might help you navigate the world of contract management. Contract management software can take care of most aspects of contract management, ensuring you do not let any contract clause, term or schedule slip through the cracks. Who does not want an easier life?
The challenges of the contract management lifecycle
There are widely agreed to be eight stages of the contract management lifecycle inclusive of:
• negotiations• approvals
• obligations• compliance• renewals