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Home » Blog » Contract Management » The Why, What & How of Contract Management: Part 4 – Benefits of Automation

The Why, What & How of Contract Management: Part 4 – Benefits of Automation

Benefits of Automation
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We discussed the obstacles while managing contracts – manually or by leveraging technology, in our previous blog.

In this blog, we will focus on the benefits of contract management automation:

  • Reduced cycle time

Reduction in the contract cycle time by comparing two different version of contracts side-by-side, automating approval work flow and signature process with eSignatures.

An Aberdeen 2010 study identified a decrease in time to process a single requisition to order cycle from 6.3 to 5.0 days. Standardizing the contracting process by use of templates also helps cut down on the cycle time.

  • Reduced maverick spend

Reductions in maverick spend. As per the Aberdeen study, organizations using contract management systems reduced maverick spend from 22% to 19%.

  • Risk minimization

Reduced exposure to risk and assured commitments from suppliers is met, thus facilitating better supplier management. If the supplier has agreed to a price reduction when the volume increases, then the contract management system will trigger an alert to make

Learn More: Zycus iContract Solution;

  • Cost benefits

Provides cost benefits by asking the suppliers to make price adjustment when the market price/inflation goes down.

  • Higher visibility

Improved visibility into contract utilization by tracking the usage of contract terms and conditions.

  • Centralized data

The chances of lost contracts are reduced drastically as they would be located in a repository which is centrally accessible.

  • Improved security

Better security in case of confidential contracts through user/folder-based access

Stay with us as we talk about the best practices for contract management implementation in the next blog, last in this series.

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