Contract management: Always keeping an overview

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Answer honestly: Do you know when your mobile phone contract expires? Or your internet flatrate? How often have you been annoyed because you missed the deadline and with it the chance to get a cheaper tariff or a better phone? How many contracts do you have as a private individual? How many insurance policies, service contracts, newspaper subscriptions, contracts for electricity, water and gas?

 

Contracts: There are always more than you think

Only a very few of us know when which contracts are due to expire – most of us just keep on paying. But a company cannot operate in this way. They have a lot more contracts to deal with: leasing contracts for their vehicle fleets and equipment; supplier contracts or service contracts with binding SLAs. And if, as we all believe, it is correct that competition keeps business alive, then it would do every company good to compare even their most proven contractual partners with the competition and to renegotiate the conditions from time to time.

 

Undervalued benefit

But this is precisely the problem: Many companies do not have an active contract management system. They overestimate the amount of work required and undervalue the benefit. And they do so when it is obvious that a document management system achieves complete transparency with just a few mouse clicks; even in cases where contracts are managed in different departments, such as logistics, production and sales. It allows for better co-operation between departments and central purchasing, which handles the negotiation. It serves as a reminder for terms of notice; can provide the digitally archived contract documents as and when required; and only shows the contracts that the user is authorised to see.

 

Central archiving as a success factor

Now imagine how much a company can save purely through renegotiating conditions, when this can amount to hundreds of euro a year within the private household. And imagine how much time is lost searching for a paper contract, because no-one knows whether an invoice actually matches the agreed payment conditions. It soon becomes clear: Introducing a document management system may be an investment; but it is a very worthwhile one that will soon pay for itself.