If individual departments are allowed to drive their own contracting processes there are a number of complications that result: –
- The Legal Department has to deal with tens or hundreds of different contract creation, approval, storage, renewal and commitment management processes.
- Legal has to review every term and clause in every contract, because there is no system to enforce standard terms where appropriate and no contract lifecycle management.
- There is little or no understanding of enterprise risk, lost revenue or cost savings opportunities from not having enforced contract standards.
- There is no central contract repository across organizations – legal and business professionals waste a lot of time searching for the most up-to-date copies of contracts.
- There is little or no visibility into cross functional overlap around products, customers, and business partners, for example buying and selling to the same company as both a customer and supplier.
Contracts may contain risk elements such as significant contract value, contingencies, and long-term commitments. It is an absolute requirement to be able to track and report on these risks. Key contractual commitments must be pro-actively monitored with alerts and notifications being sent to the respective individuals within an enterprise.
Our suite of software solutions provide answers to all these issues and more.