Most clients we have surveyed have rated their contract management function poorly. Some of the pain points are:
- Agility – Lack of agility in how they contract and manage contracts
- Non-responsive – Contract management process that is not responsive to changing business context
- Repository – Inability to keep track of supplier contracts
- Never-ending bottlenecks
- Can’t track supplier performance – Companies can’t see when suppliers are out of compliance, and suppliers are not scored effectively.
- Surprise milestones – Companies miss important deadlines because of lack of attention to supplier requirements.
Most of the above come about due to poor contract management as most companies invest energy and effort in getting contracts signed and thereafter put them on the shelf instead of managing them. This can lead to a loss of revenue of about 9% if not rectified.
Skilled and experienced contract management team
Contracts are core to managing, and contract management must be undertaken in a consistent, logical and fair manner. When it comes to contract management, business needs an expert that understand client’s environment, requirements and possess the necessary skills to not only assist a client to identified weaknesses but assist in addressing such gaps and thereby improve the business. When organizations lose sight of the economic connection in contract management, they jeopardize the benefits that can be achieved.
What we do for our clients:
- The overall security of key business information.
- Increased cost savings by ensuring greater efficiency in the management of the contracts and suppliers.
- The ability to measure overall benefits to costs and problems associated with each contract.
- Ease of operation and monitoring of each contract with an increase in visibility and control.
- The production of regular and appropriate management information to meet the needs of your business.
- Better contractual terms derived from the ability to choose suppliers and negotiate with them from a position of strength.
- The ability to encourage suppliers to increase their performance derived from a better supplier’s activity information.
- Effective Service Level Agreements as you have better monitoring and more information from which to work.
- More productivity from procurement staff as the contract management services will remove much of the basic monitoring activities.
- Risks and liabilities are minimized due to better information and system alerts and flags.
- An overall reduction in spending, coupled with an increase in profitability.
We help organizations to develop the contract management policy and procedures, contract templates and implement a software tool that assists with the automation of the contract management process and thereby assist in having contract managers who add value rather than focusing on administrative activities while overseeing the risks holistically and efficiently