In the current economic climate businesses are being forced to cut costs and improve performance. Many areas of over expenditure are relatively easy to detect but there are some which remain hidden because of the systems and processes used to manage them.
One example of this is contracts management. Every business has contracts or agreements with suppliers of products and services and in most cases contract management is manual and paper based.
The more contracts an organisation has, the greater the challenges will be. Typically they will all start and end on different dates and will require a lot of time and effort to manage and negotiate. Contract renewal dates can be missed resulting in significant over expenditure as the opportunity to re-negotiate has been lost.
For these and many other reasons such as compliance the benefits of automating contracts management are now being recognised. The use of contracts management software allows the entire process to be automated, giving control and standardisation to the way in which suppliers are selected. Electronic control over contract creation releases employees from the labour and time intensive manual tasks which leads to increased productivity.
More importantly, a contracts management system gives the Finance Department complete visibility of the company’s financial exposure at any time allowing them to monitor and control expenditure more effectively. Automated contract renewal date alerts also ensure that expiry dates are not missed giving ample time for re-negotiation.
For further information on a full contract management solution and how it could help your business save money please click here or call The IPC Group on 08081 45 46 47.