Having contracts stored centrally has many advantages, including making specific company documents and information easier to find. However, without supporting processes and buy-in from staff, centralized contract storage may not inherently make a business’s document management significantly better.
What will improve a business’s document management platform is using that centralized information to:
- Interrogate the aggregated data to find patterns and anomalies, and to generate insights
- Set strategy and refine internal processes, using those patterns and insights
- Prioritize specific actions, based on a full view of the business’s contract terms and conditions
- Digitize and optimize fragmented contract processes
It helps to think of each contract as a collection of data-points. These data-points, such as dates, amounts, names, departments, geographies etc. are what bring the contract management process to life. This information is the core element to a successful Vendor Management System.
Now for the important part… It’s vital that the information provided to the Vendor Management team is acted upon for the business’s benefit.
Specifically, this means:
- Date-based notifications trigger a renewal process that includes an assessment of the current value of the contract, what the alternatives are and whether it should be renewed.
- Where compliance or certifications have lapsed for a vendor partner, remedial action is triggered to resolve it as quickly as possible.
- Where overspends or significant contract risks are identified, these are flagged to the relevant stakeholders to be resolved.
- Cost consolidation opportunities are shared with finance, procurement and other interested internal parties.
- Bottlenecks in core contract processes are identified and resolved quickly.
When it comes to contract management, different teams and departments will require different information. Some stakeholders will be focused on items such as renewals, compliance and authorizations. Others will be more interested in consolidated spend figures and contract risk. Synchronizing your Document Management and Vendor Management systems will ensure all interested parties have the tools and information needed to be successful.
About Limitless Technology
Limitless Technology, LLC has been managing complex indirect spend and vendor documentation since 2006 for some of the largest companies in the USA saving them millions in costs.
Through our Billing Optimization and Vendor Management Solutions proprietary platforms we utilize technology, processes, expertise, time, and resources to improve our client’s bottom-line.
Limitless Technology manages your vendors, so you can manage and grow your business.
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