Contracts are the only binding document that defines business relationship and transactions among parties. Yet substantial “hidden” savings are left on the table by not managing contracts better.
Adopting cloud-based contract management solution helps achieve financial optimization by improving overall efficiency of contract creation, authoring, and negotiation process. CLM systems can alert users to impending contract obligations and keep a track of rebates and realize contracted savings.
Standardizing contract language through templates reduces the necessity and dependence on expensive manual review. This avoids costly legal fees arising from non-compliance. Add to this increasing regulation and the need to manage and mitigate risk (e.g. unwanted contract renewals).
Over the years, businesses have become more complex and business models include complex relationships across multiple stakeholders providing complex goods and services. This has directly led to increasing commitment for active management to realize revenue, deliver to agreed terms and realize complex pricing terms.
We can see why CLM has gained strategic importance within organizations.