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
by Nancy Nelson