To look at contract management by the numbers, start with this one: according to Forrester, a CLM solution can cut legal contract review time by 80 – 90%. That translates into shorter business cycles, opportunities seized, advantages gained, risk averted. The numbers below are compelling for sure, but in the realm of dynamic global commerce, trying to quantify the real value of contracts for a source-to-pay (S2P) or procurement organization is next to impossible. In addition to measuring bottom-line gain through a properly created contract, it’s difficult to measure the potential costs avoided through expiring contracts or auto-renewals, unclaimed discounts for P2P purchasing quotas, supplier performance – the list goes on.
Contract management combined with other procure-to-pay solutions raises the stakes even more. Risk management in supply chains – global or domestic – is about visibility of data and access to the information in all enterprise contracts. Whether protecting against unqualified suppliers, ensuring adequate and current certification and validation, regulatory compliance and more, contract management can keep your organization from becoming just another statistic.