Procurement Contract Lifecycle Management Assessing the Value of Contract Automation January 2012
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Procurement Contract Lifecycle Management Assessing the Value of Contract Automation As the bridge between strategic sourcing and procurement, contract lifecycle management is a primary means for organizations to improve process standardization, contract compliance, and transparency in procurement. This whitepaper research report examines the crucial set of processes and technologies that encompass contract management, by exploring the pressures, actions, capabilities and enablers of over 130 organizations surveyed. We’ve learned that Best-in-Class organizations leverage contract lifecycle management solutions to: • Identify opportunities for savings and prevent inefficiencies • Reduce approval times • Realize more negotiated savings • Understand existing contractual obligations • Bring more spend volume under management with spend analysis Over the past few years, contract management processes within global enterprises have become more important and more complex. Many drivers have contributed to this change, such as increased business-to-business transactions and the need to lower supplier risk due to potential corporate litigation and penalties for breaching industry regulations. In response, some organizations have automated contract management processes for both internal and external contract collaboration. Yet despite the emergence of technical capabilities in contract management (ranging from clause libraries to use of electronic signatures), many organizations still ignore the potential benefits of this technology or fail to embrace contract automation and continue to manage contracts with a mix of paperintensive and manual processes. By resisting automation, organizations limit their visibility into enterprise contracts, while exposing themselves to risks in the form of missed cost savings, poor compliance, and regulatory backlash. Contract lifecycle management technology provides an opportunity for procurement organizations to take contract maintenance out of the hands of legal counsel, while allowing them to focus on increasing efficiency and driving cost savings.
© 2014 Selectica, Inc. | www.selectica.com
“The current contract lifecycle management process is extremely individualized and immature. Any improvement in visibility, access, performance monitoring, etc. would be a substantial help to mitigate risk to the organization.” ~ Manager, IS Vendor Management Office, Pallet and Pooling Services Provider
Aberdeen research has shown that effective centralized contract management, combined with CLM solutions, helps organizations manage supplier expectations, control risk, and improve profitability. Ongoing centralization leads to consistency and allows companies to create common policies and procedures, as well as to improve auditing contract systems and processes. Selectica Contract Management solutions help companies maximize saving opportunities, reduce expenses and costs associated with contractual documents, systems and processes. To read the white paper in its entirety, download it here. For more information about Selectica Contract Management, visit Selectica.com, call us at: 1.877.712.9560, or send us an email at: sales@selectica.com
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© 2014 Selectica, Inc. | www.selectica.com