Challenges

  • No centralized contract repository
  • Large, complex sales contracts missing and scattered around the world
  • Data not readily available for regulatory compliance audits
  • Important contract data manually managed, reported (renewals, revenue)
  • Inconsistent contract management processes leading to confusion, errors

 

Solution

  • Determined business drivers for system implementation
  • Identified necessary and important functions/features
  • Performed analysis of software available to satisfy requirements
  • Chose and configured system to satisfy function and process requirements
  • Implemented system, input contracts, trained user community on system and processes
  • Created centralized team to manage contract data and system

 

Benefits

  • Improved contractual, regulatory, and corporate compliance
  • Risk identification and mitigation through increased insight into contract performance and processes
  • Contracts staff able to focus on value-added work instead of administrative, manual and labour-intensive tasks
  • Faster contracting time due to implementation of clause and template library

 

RESULTS: Effective CLM system helps reduce cost* of poor contract management adding more than 9% of total revenue

    • 1-2% improvement in revenue
    • 50% reduction in contract cycle times
    • 25% boost in contract renewal rates
    • 55% increase in contract compliance

*Industry Statistics

ABOUT THE AUTHOR
Nancy Nelson

Nancy Nelson