From ever-changing federal, state, environmental regulations and missed obligations, to fine-print blind-spots – contracts are ridden with a long, complex list of risks and threats. These risks can convert to huge losses both reputational and financial for companies, when not mitigated in time. And when companies have contracts that run in tens of thousands, monitoring each of them and ensuring all compliances and regulations are met is a mammoth and often a seemingly impossible task.
Sales operations teams are primarily responsible for managing sell-side contracts, often all through manual processes. This leaves them with little time to do the other important sales tasks. IACCM benchmarking data reveals that medium-to-complex sell-side contracts typically take up more than 76% of contracting resources. Moreover, for half of these, the bid to execution cycle can extend to more than 21 weeks. These statistics make a strong case for why an advanced contract management solution is the need of the hour. With an automated, integrated CLM solution, sales teams will not only be able to close sell-side contracts faster but will be able to ensure better contract compliance, accuracy and consistency.
Infographic – Artificial Intelligence Powered Contract Management: Transcending the Time and Cost Barriers
Contracts, today, are not static, unyielding documents to be archived, rather live, strategic tools that drive operational value from the written word to the enterprise. An International Association for Contract and Commercial Management (IACCM) study reveals that poor contract management can result in revenue losses to the tune of 9.2 percent every year.
As global enterprises manage hundreds of contracts on an annual basis, manual management processes prove insufficient. Businesses are now migrating from rudimentary contract management systems and databases to full-fledged contract lifecycle management (CLM) solutions so they can track operational and strategic KPIs.
Contract lifecycle management (CLM) is essential for growth in today’s competitive business environment. Going by IACCM (International Association for Contract and Commercial Management) estimates, 9.2% of an organization’s revenue is potentially lost due to inadequate CLM. Commercial and contractual issues are cited by IACCM as the primary cause in over 70% of troubled buy- and sell-side relationships.
Ultria recently published a detailed survey report on ‘How mature is your Organization’s Contract Management?’ to understand the maturity of organizations in adopting next-gen contract management solutions.