Using Contract Management Software to Improve Your Supply Chain
Working out the best way to manage a supply chain successfully is no easy task. There are a lot of moving parts, and many things going on at once. Such as keeping tracks of obligations and vendor performance, introducing new low-risk procedures and processes, and making operations more efficient through new opportunities. It seems that to achieve success, it’s necessary to choose the most appropriate solutions and tools to help keep the entire process manageable. Indeed, supply chain performance can vastly be improved by using contract management software, helping to improve the way people work with partners, vendors, and suppliers. If you’re unsure of how a contract management system could improve your supply chain, take a look at these examples.
Access All Contracts From One Central Location
Being able to access contracts online in one central place is more efficient and easy, and allows people to review important contracts, working out how they could impact a business. Time is saved, as it’s no longer necessary to trawl through filing cabinets or email inboxes to find what’s needed. Plus, there’s no waiting around for colleagues either. Instead, everyone has the most up to date version at their fingertips. Contract managers, procurement teams, and vendors are all able to access contracts securely online, eliminating constant emails between other parties. This also eliminates the risk of contracts getting into the wrong hands.
Banish Paper Processes Forever
Paper-based processes were traditionally at the center of supply chains. This caused many problems, including widespread disruption that cost money as a result of various parties not being present in the same place at the same time. Over-reliance on paper can also result in delays because it needs to be passed from party to party for a physical signature. This is no longer necessary, as this can be done digitally. Various parties can respond quicker, lessening the chance of supply chain disruption. By using contract management software, all parties are working on the most up to date version, and are fully aware of how to proceed or deal with conflict.
Keep a Close Eye on Contract Dates
Keeping an eye on important deadlines and dates is an essential part of taking control of a supply chain portfolio. With a digital system, users can search contract end dates and work out whether it’s necessary to end that particular contract or renew or renegotiate its terms. Of course, the value of the contract and the performance of the supplier play a big part in this. Once the end date of the agreement has been identified, staff can analyze it in detail, working out if another vendor could replace the current one due to being more efficient or cost-effective. Above all, using a contract management system allows staff to have the crucial contract deadlines and dates visible, eliminating the risk of overspending or damaging the supply chain.
Recover Details From Certain Contracts More Quickly
Modern contract management software contains features like AI and OCR recognition. This enables the user to search through contracts based on date, language, clauses and terms. With paper versions, this could take days or even weeks to achieve, depending on contract size. This functionality comes in handy if someone is trying to work out the size of a contract, the lead time for production or the default terms if a supplier breaches the contract. Ultimately, contract management software saves time doing repetitive tasks and enables the user to complete higher value activities within the supply chain.
Report on Things that Matter the Most
Undoubtedly, one of the key benefits of using contract management software is its ability to put together agreement content on the contract swiftly. It’s possible to assemble data points throughout the agreement, then determine when the agreement will expire. Data points also help determine the number of different contract types being run. For example, cost-plus contracts, active fixed-price contracts, or time and material contracts. They also help determine if a contract features a force majeure clause.
Contract management software enables users to determine all their suppliers and their locations. This is useful to work out whether a company is over-relying on a particular supply chain based in one specific place. Contract management software also allows companies to pinpoint weaknesses in a supply chain which can then be rectified. In contrast, it also allows staff to build on areas that function well and are having a good effect on a business.
Bottlenecks and expenses can be identified more quickly than paper-based processes. For businesses considering a contract management platform, they should choose one which is affordable yet usable. This ensures that results can be seen much quicker, and costs are minimized.
How Upgrading to Contract Management Software Can Enhance Your Supply Chain
Managing a supply chain is no easy feat. There are lots of moving parts and various things that need tracking along the way. If you’re still shuffling paper contracts, this can make the whole process even more complicated.
Disruption and delays are common, while different parties might be working on outdated versions. Thankfully, a centralized contract management system eliminates these kinds of problems.
Monitoring and tracking become more manageable, as staff are better able to determine which contracts to continue with, renegotiate, or terminate. Plus, this helps save money. Searching also becomes more straightforward, thanks to AI and OCR technology. Lead times, terms, and contract volumes can be quickly determined, while less time is wasted on menial tasks.
Reporting is also much more robust using contract management software. It’s quick to visualize information, determine expiry dates, and supplier location. Ultimately, it allows businesses to identify and correct supply chain weaknesses, as well as unwanted expenses.