Ariba has developed a straight-forward assessment tool in collaboration with the International Association of Contract and Commercial Management (IACCM) to help companies better understand their level of contracting maturity. Benchmarked against proven best practices, you may begin to see a pattern emerge as you are taking the assessment. Often, effective contract management processes are underestimated and overlooked in lieu of higher business priorities. Using Aberdeen Group estimates, the impact of effective contract management automation brings up to a 30% reduction in legal administrative contracting costs, 55% additional contracted spend under compliance, 25% increase in timely contract renewals, 50% reduction in contracting cycle times, and a 1% increase in overall revenues if deployed properly for sell-side contracting. And most if not all departments will have increased visibility into contracting processes. Going a step further, once major operational and hard dollar negotiated compliance savings are realized, an effective automated contract management solution allows for buyers and sellers to collaborate on contracts together much easier. Through enhanced collaboration, integration, and tight compliance controls, trading partners are able to improve the contract structuring to be more simplified, to include the necessary risk management controls, and to focus the contract on the relationship for better business over the long haul.
After you take the assessment, you’ll receive a Contract Maturity Score (on a scale of 0 to 105) and see how your processes compare to best-in-class. Here are the categories:
- Novice- While most of your contracting is still manual, significant improvement can be easily accomplished. A simple first step is to include a central repository that can get you in the game and provide you with tremendous benefits in terms of risk reduction and contract visibility.
- Qualifier- You recognize the importance of best-in-class contract management and have started the race. Most organizations are still at this level. Stepping up your game will help reduce cycle times, decrease costs, and increase revenue.
- Bronze Medal Team- Your program is paying off but the competition isn't far behind. Find out how to out-pace your industry and create a competitive advantage through better contract management.
- Silver Medal Team- Great job! You have most of the right processes and tools in place. Your challenge is to get the entire organization on board and integrate your systems.
- Gold Medal Team- Wow, you take contract management seriously and so does your organization. You should speak at our next webinar!
Also, time is of the essence! Our next IACCM Future of Contracting webinar is Tuesday, December 4th at 1pm (EST), titled: The Path to Best-in-Class Contract Management: Your Future Awaits! Register HERE
IACCM's Tim Cummins and our very own Dan Ashton from Ariba, will be hosting the webinar and discussing steps organizations can take to improve their contracting maturity.