revenue.jpg

Yesterday, we introduced the importance of contract management. Today, let's talk about specific benefits.

 

How can automated contract management benefit your business?

Sure, faster negotiation and lower risk sound good, but is sales contract automation really worth the effort and cost? As Dwyer and Carol Martz from the legal department of the Cleveland Clinic made clear in a presentation at Ariba LIVE 2014, the answer is a definite yes. Benefits of automating include:


  • Up to 10% higher revenue. While contract compliance issues typically cause sales leakage of 2-3%, automated CLM drives compliance up, protecting that revenue for your business. It can also increase revenues 5-7% through 50% faster negotiation cycle times, 15% higher renewal rates, and improved collaboration during and after contract execution.[ii]
  • Greater visibility. A paper-based process makes it difficult to access the information in contracts, limiting you "not just in terms of visibility or data, but true sales intelligence,: Dwyer says. With comprehensive data analytics and reporting from automated CLM, you can mine valuable contract information and use it strategically.
  • A faster, more efficient CLM cycle. Automated CLM gives you enterprise-wide management capabilities so you can centralize and standardize all sales contract functions, get approvals faster, and use limited legal resources more accurately.
  • Better customer relationship management (CRM). Automated CLM supports direct collaboration with customers and tells you exactly where you are at every stage in the process, and can also be integrated with your existing CRM program and/or software. The ability to easily track dates and milestones, ensure that negotiation specifics are actually in your contract, stay on top of deliverables, and fulfill agreed-on requirements strengthens satisfaction and sales.

 

Tomorrow: Best Practices

If you don't want to wait, go to our Supply Lines group to read the full article.

 

 



[ii] Source: International Association of Contracting and Commercial Management (IACCM