In the context of this pandemic, the migration of operations to remote work and the management of remote teams, which was happening slowly before – particularly in Brazil – had been some of the key disruptions in the corporate world. If digital transformation was a smart choice before, now it’s almost mandatory. There is no doubt now that digital solutions are vital to leverage any business.
To cope with these cultural changes, mainly due to social distance, organizations of all sizes and industries had – and are still having – to rethink their manual processes. The need to maintain the supply chain, decrease costs and increase profits highlighted the importance of the procurement area in simplifying and digitizing its processes, such as supplier selection and contract management.
Contract management: key benefits.
Contracts impact the company’s profitability directly and, in most cases, they are complex. It’s through contracts that buyers and suppliers enter into a commitment, specifying the activities that must be carried out and the terms that must be met. They structure rules, guidelines and obligations, thus reducing the risk of any irregularities.
For this reason, if such documents are drafted in a poor way, they can result in waste of time and money, and significantly impair an organization’s activities. This is where the need for Contract Life Cycle Management (CLM), comes in.
CLM allows you to create, execute and analyze contracts with suppliers, and also monitor agreements that have been already signed. This process, which involves partners, is vital to maximize the company’s operational and financial performance, and contributes also to risk reduction.
The benefits of contract management go beyond contractual obligations and risk level decrease. With a well-structured contract management strategy, businesses can also improve the quality of products and services offered to customers, and make the audit and compliance process in procurement easier.
CLM solution: technology in contract management
The digital transformation in procurement is now a reality for many businesses that want more savings, compliance and agility. Automating the contract lifecycle with a CLM solution makes buyers free from manual controls, so they can focus their time and effort on negotiations with suppliers. It offers also visibility, access to real-time data and contract change control, among other advantages – which optimize the process and control of documents by the company’s legal area.
Click here to discover all benefits of a CLM solution.
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