If you’re reading this, you already know the importance of contracts to your organization. Every business transaction, supplier, partner, customer involves some sort of contract, so it’s critical to get them right. Here are three reminders of how to use CLM to work smarter, collaborate better, seize opportunities faster, mitigate risk and be better empowered to make intelligent business decisions and ensure compliance.
For too long the legal department has been seen as something of a necessary evil within an enterprise: vital in keeping the company out of court or at least on the winning side of legal battles, but unable to add much value beyond those duties. This attitude, however, is changing. Increasingly, legal departments are contributing more and even becoming zero-cost centers by streamlining operations, uncovering and inventing new revenue streams, and participating more fully in the enterprise’s overall strategy.
It’s not news that enterprises are dealing with more contracts and more complexity than ever before. Increasing numbers of stakeholders have skin in the game and creating, executing, and managing contracts plays a crucial role in ensuring a company’s profitability. There are plenty of news stories about legal and financial risk involved when contracts are poorly managed.
Remember the days when you asked for information from a vendor and they would send you a slick brochure? Some in fancy packages, others oversized (so they stand out). When you asked for a proposal, you’d get a 30-page bound book while others emailed you a PDF, or you got invited to a private page on their server to access the information.
Each year, Supply & Demand Chain Executive releases a list of elite professionals, “Provider Pros to Know,” both online and in the print issue of their magazine. Award recipients are recognized as people to know and learn from in the supply chain industry. They work for software firms and service providers, consultancies or in academia, and have made significant contributions to their individual clients or to the industry as a whole, enabling them to better meet the challenges of the coming year.
I know we don’t have to preach to the choir. You already know that there are some expenses that are hard to justify – not because they aren’t necessary, but because it’s hard to prove that they are worth it. It can be difficult to show where the costs are going to impact the bottom line and why your CFO should consider them necessary.
According to Gallup, supplier relationships are among the most overlooked but most important connections a business can have. Being a “customer of choice” can help mitigate risk, lower costs, and spur innovation. Companies that are great customers benefit from a more reliable supply chain and receive “flexible, non-bureaucratic support” from suppliers during crisis situations. That means linking supplier management with contract management.