Storing contracts and tracking contract renewal dates in the traditional way creates significant risks to your business. And yet, according to Aberdeen Research Company, 85% of companies are still using outdated processes to manage and track their contracts.
Put an end to ineffective contract management.
Automation software like Contract Concierge helps reduce or eliminate the five common risks associated with traditional processes.
1. Unrestricted access & lack of security
Access to confidential documentation such as contracts should be limited to specific personnel. Unfortunately, unauthorised access happens too often, leaving businesses in legal and financial risk. Mishandling of information or data theft can damage a company’s reputation and lead to significant legal costs that can further jeopardise the business.
Automation ensures only authorised users gain access to specific contracts and documentation. Contract Concierge offers granular permission that controls authorised access by individuals or teams across the organisation.
All contracts and supporting documents are stored securely in on place so that only authorised users can instantly access the data they need anytime, anywhere. This solves the problem of storing contract information in an individual’s email inbox, a filing cabinet or even on a shared drive, which leaves the business vulnerable to lost or hard to find contracts, wasting time and potentially costing the company money.
2. Unplanned terminations and renewals
Knowing exactly when contracts are up for review, renewal or termination is difficult. Trying to control and track contract dates with the creation of personal calendar entries is highly risky and ineffective in a corporate environment. Adding the dates to a spreadsheet is fraught with human error and is unlikely to deliver the outcomes required. That is why many contracts go unnoticed into the next year, resulting in increased costs and liabilities that are virtually invisible to organisations.
Contract Concierge makes sure you effectively monitor all the contracts and never miss an important date. Our system automatically sends notifications for trigger dates and alerts users to take action on all key contract milestones such as contract renewals, terminations and other important dates.
3. Version control and contract variations
Version control is a common problem throughout the lifecycle of contract management. An automated system like Contract Concierge ensures users always have access to the correct version. Since all documents are stored in on place, you will never have to guess if the version you are editing or reviewing is the correct one.
Older versions are archived, providing you with a complete audit trail of amendments and price reviews.
- Supplier review meeting notes and actions
- Price and service addition and deletions
- Key stake holders contact details
- Supporting information i.e. RFx documentation
- Task and actions associated with the contract are captured within the system’s workflow and task management functionality
- Contract extensions
4. Missed terms including rebate tracking
Each year, UK businesses lose millions of pounds of rebate income due to their inability to accurately track and manage the commercial terms of suppliers. Additionally, relying on manual processes to monitor supplier KPIs and minimise or neutralise potential price increases is often ineffective, resulting in non-compliance, poor performance and higher prices.
An automated system like Contract Concierge makes it easy to manage terms and ensure you are always receiving the best pricing and service from suppliers. For instance, target driven awards will auto alert users to assess contracts at the right time to ensure you are poised to receive the maximum rebate benefits. Our rebate scheduler will also notify the finance department when to claim rebates including marketing, listing fees, expenditure incentives, etc.
Automating contract management also ensures you effectively manage both pricing and service. Account meetings with suppliers are important to measure performance, but sometimes these are forgotten or missed. Contract Concierge provides action tracking and diary management so that meetings are scheduled at the right time and performance is always meeting expectations.
In addition, our software automatically schedules price change dates and price review dates. This management feature provides you adequate time to review price changes and meet with suppliers to negotiate better deals.
5. Certificates
Organisations have a duty to make sure the suppliers they do business with are compliant in meeting quality, legal and regulatory requirements (ie. liability, fair trade, insurance, living wage, etc.) with valid, up-to-date certificates. Keeping track of all the certificates for each supplier during the term of the contract can often be overlooked.
Our contract management software includes certificate management, whereby the system automatically tags expiry dates, stores a copy of the certificate and auto notifies the user(s) prior to an expiry. This feature helps ensure the supplier provides updated certification as needed. Our system will also track any/all changes to the contract including new units or services, price changes, contract meetings, etc., so that nothing ever gets missed and everyone is always on the same page.
As you can see, automating contract management significantly reduces or even eliminates a lot of the risks associated with manual processes. Contract Concierge offers built-in automation functionality that makes tracking and managing contracts easy and risk-proof.
If you’d like to see our software in action, schedule an online demo or contact us.