You are here: News & opinion
A guide to Contract Management: Embedding an automated solution13/10/2015
Blog, Practice Guide
Successful contract management can deliver significant value to your organisation. Having the right tools and processes in place can have a dramatic impact on your ability to manage contracts efficiently and effectively.
Research has shown that up to 75% of the savings created from new contracts can be lost within the first 18 months without strong management arrangements in place.
As well as protecting organisations against potential unforeseen cost increases and reduced financial benefits, sound contract management delivers:
- Better supplier relationships – helping organisations get the most from the knowledge and expertise of their supply chain
- Better understanding of services – helping organisations prepare for future sourcing exercises and supporting service re-design
- Better internal compliance – enabling procurement functions to work more successfully with the wider organisation
As many organisations are seeing an increased diversification in their supplier chain, or a consolidation of spend into high-value, business critical contracts, managing contracts effectively has never been more important.
In the attached download, we look at the critical success factors that are common in organisations that are leaders in contract management, and how technology can help procurement functions overcome the challenges faced when creating and maintaining effective contract management processes.