The traditional view of contract management is the administration of contracts via static administration systems. However, in a dynamic world, the demands on contract management are increasing. Contracts need to be renegotiated as products and customer requirements change.
In addition, data has to be re-entered into contracts on a daily basis. This results in errors that can quickly cost a lot of money.
Contract management is the process of administrative support for contract creation, negotiation, administration and signing. The task of contract management is to optimize each of these process steps so that they can run without friction losses. A number of administrative measures are used in this process.
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In addition to the storage and access management of contracts, modern contract management must be able to keep the data of concluded contracts available. Inefficient contract management can cost companies up to 9.2% of annual revenue.
Other contract management tasks to increase the organization's profitability include:
Contract management software supports contract management in fulfilling its tasks. The core tasks of contract management software are the creation, negotiation and management of contracts.
Innovative contract management software offers the possibility to create contracts via an approved template. This allows companies to save up to 70% of costs during the creation process.
Contracts are usually negotiated via email and MS Word. This is a lengthy process. Contract management software can help shorten this process. It can also eliminate the possibility of accidentally sending internal comments to the other party.
In order to make a reliable statement about the state of your company, a look at your contract portfolio is indispensable. Contract management software helps to determine which risks are currently lying dormant in your books, without painful Excel analysis or data gathering.
Data subjects have the right to know what data is stored about them. Contract management software provides information at a glance about what data is available and in what context it was collected.
The accounting department is responsible for invoicing. This requires deadlines and invoice dates from the contract. If these are missing, invoices can only be issued slowly and your money will arrive later.
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Controlling usually takes over the risk monitoring of contracts and is responsible for planning and evaluating data across the entire company. An important data supplier for controlling is contract management. An insufficient data situation is often the starting point for far-reaching wrong decisions.
Contract management with Excel proven, but not always easy
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