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Home » Blog » Contract Management » Legacy vs. New Age Contract Management – Resolving the war in Middle East Procurement

Legacy vs. New Age Contract Management – Resolving the war in Middle East Procurement

Contract Management Life Cycle
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Having seen the challenges posed by legacy systems, let’s explore how technology can help us resolve the issues in the post-war period.

Contract

Contract Management Life Cycle

Resolving the challenges with New Age Contract Management Systems

Challenge 1:- Low visibility

  • Implement a central repository to store and manage contract information.
  • Identify key terms of a contract which need to be tracked like expiry date, variations and set the respective alerts.
  • Analyze the contract utilization trends which will in turn help you identify whether contract terms are being followed or not.
  • Review evergreen contracts and re-negotiate terms if required.

Challenge 2:- Compliance

  • Integrate your contracts with the organization’s ERP system.
  • Identify purchase price compliance and rebates by monitoring purchase information with the contracts.
  • Additionally, maintain a contract repository & track utilization metrics.

Challenge 3:- Standardization

  • Create standardized contract templates and keep them easily accessible to the sourcing managers.
  • Track what terms are negotiated most often and change them globally.
  • Also define a clause hierarchy based on the different regional aspects.

Challenge 4:- Long Cycle Time

  • Introduce eSignatures and avoid the hassle of manual signatures.
  • Create pre defined approval hierarchy based on category, spend etc.
  • Thus the written contract will automatically follow the hierarchy for approval and feedback.
  • Set clause level approvals where you can define clause ownership and automate the process.

 As quoted by Andy Grove, Intel – “There is at least one point in the history of any company when you have to change dramatically to rise to the next level of performance. Miss that moment – and you start to decline”.

To actually reap the benefits from the contracts, organizations need to invest in the right technology and develop the right attitude.

Learn More: Contract Lifecycle Management Software

How have you resolved a challenge? Share your views in the comments section below.

Related Read:

  1. Blog – 5 Reasons Why You Need a Contract Management Softwarev
  2. Blog – Ultimate Guide to Contract Management: Benefits & Best Practices
  3. Blog – The Evolving role of a Contract Manager
  4. Contract Management Software
  5. Analyst Report – Contracts as a Connector – The case for improved contract management
  6. White Paper – The Why, What & How of Contract Management
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