Contract management – opportunity and risk for your company
Contract management is a critical business process that entails a multitude of different challenges. Various departments with differing tasks must be organized along the entire contract life cycle. What all departments have in common is that transparency is the mission-critical factor.
Various departments must be involved in the contract process before it actually commences. This entails a few essential tasks:
- Compiling information
- Drawing up contracts and other applicable documents
- Adjusting the specific subject of the agreement
- Coordinating internally and negotiating with external contract partners
The approval and signing processes initiate the active contract period.
Without digital contract management, Excel lists are often the method of choice to keep track of the tasks and deadlines of a contract.
This leads to several risks:
- Contracts are limited to a specific department or redundantly organized
- Time-consuming research
- Use of outdated information
- Inadequate database for performing company-wide analyses
- Missed deadlines
- Less opportunity to cut costs