Contract Life Cycle Management May Well Be The Solution You Are Looking For To Save Your Sanity
Can’t find that million dollar supplier contract that you think has lapsed? Are you starting to experience cold sweats at the thought of having to ask your supplier for a copy? Its enough to drive anyone insane! Perhaps you recognize that you aren’t the only one facing this situation. Contract Life Cycle Management may well be the solution you are looking for to save your sanity.
Jests aside, how an organization is managing contracts and storing them is no small matter. Our client experience has shown there may be wildly differing approaches to storing and managing contracts. Some divisions may keep perfect track of theirs. Whilst at others contracts languish in various filing cabinets, only to be retrieved when a contract goes horribly wrong. Or the supplier reminds you that it is about to expire.
Not sure if contract life Cycle management is of concern to your organization? Consider the whether the statements below apply to your situation:
- No one in your organization knows the company’s contracted financial commitments. Therefore no one is able to provide you a report about the total amount the company has agreed to pay its suppliers in the year ahead.
- No one has any idea when contracts are up for renewal, or whether they have lapsed or ceased.
- You are unable to create a meaningful procurement plan because no one knows when a contract requirement will arise.
- You can’t see at a glance how a contract is performing.
- You don’t know whether your suppliers are complying with the terms you agreed with them.
- You have no idea if the organization is complying with the agreements it invested so much time in to negotiate.
- There is no way to cross reference invoices paid with the agreed contract costs.
- You don’t know what the disaster recovery plans are for your key contracts, or supply lines.
- No-one can find “that” contract. And you have to organize a paper search party anytime a supplier issue arises.
Still not sure whether it really matters that you don’t have a contracts registry, or some processes for managing your contracts?
Consider the potential efficiency benefits you are missing out on:
- You could achieve 12% -20% on savings opportunities
- Around 22% on cost avoidance
- Potential efficiency savings of around 21% of your contract spend per year!
All that could add up to millions of dollars – real money saved!. By managing your contracts, sharing your contract data with those who can benefit from it, there are some really amazing benefits to be had. It simply makes business sense to take control of your contracts.
If you are not controlling and managing your contracts.. who is? your supplier? Can you rely on them to protect your best interests?
Acalia & Company has developed a simple process that will help you to rapidly review the state of contract management in your organization. As well as identify contracts and get a handle on managing them. We have our own proprietary intellectual property that we can use, or adapt to fit your requirements.
There is no need to re-invent the wheel. Contract life-cycle management is a mature approach proven to reduce risk, deliver efficiency and performance improvement. Many have benefited from implementing this process. We can share their lessons learned with you. So that you can benefit quickly from managing your contracts better.
Are you looking for an out-of-the box system to help manage your contracts? Contact us for a neat and tidy (and budget friendly) cloud-based, or on-premise solution that saves you money, and can be up and running within a matter of weeks (days, even).
Where necessary we can even trace and resolve over-payments, or renegotiate existing agreements to get you a better deal.
If you are considering addressing contract risk or any aspect of contract management in your organisation, contact us. We’d be happy to give you more insight into the CLM and what has worked for our other clients who have implemented this approach.