The Benefits of Centralization in Contract Management

Centralisation in Contract Management

Nothing increases costs for a business like projects, administration, and processes spiraling out of control. It is something that can happen very easily, though. As businesses focus on specific areas and departments to spark and maintain sustainable growth, internal systems can become unwieldy and difficult to manage over time.

As your business grows, your old systems and processes are no longer fit for purpose. While keeping track of contracts, sales data, and customer relations was once simple and could be managed with separate spreadsheets, emails, shared folders, and paper filing systems, expanding organizations will find that money is lost over time, limiting the level of growth that is possible. This is unnecessary, however. Effective streamlining of your operation should be as integral to growth as tailored hiring practices and proper governance.

What is centralization?

Within the context of your business, centralization is the process by which previously separate working elements are brought together in a streamlined way. For some organizations, this might include merging existing systems for Sales, Legal, and Human Resources departments, as well as general administration and management. The most effective way of achieving centralization is by bringing separate elements together in Contract Management Software because the processes and functions of Contract Management are often the common denominators between these previously separate business areas.

Contracts, and the strategies used in their management, intersect with areas across the business – from employment and asset management to sales, supply chain, and outsourcing. Continuing to work with these elements separately generates a great deal of duplicated effort and, inevitably, this leads to avoidable errors, and vital information falling through the cracks. Centralizing these processes ensures tighter control and better results.

Increased control leads to increased revenue

When you streamline your commercial operation through centralization, you optimize your processes and workforce in a way that means your opportunities to generate revenue are increased.

  • Dates and timelines – When you keep track of dates and timelines involved in contracts and agreements, you can ensure that every opportunity to renegotiate terms and rates is seized upon, and unwanted, unproductive contracts are not left to automatically renew.
  • Administration – With a centralized, integrated system, duplication of work is eliminated, allowing you to make savings in time and money while deploying your workforce more efficiently.
  • Contract creation – When your contracts system is centralized, remote-working staff and staff in the field are able to create new contracts more quickly, speeding up projects, and making their own working time more productive.

Automated processes are a significant part of a centralized Contract Management System, and the introduction of this feature allows you to make savings across your business, thereby adding to opportunities to increase revenue. In addition to reducing the amount of time staff spend on basic administrative tasks, these automations provide documented audit trails to ensure transparency, compliance, and best practice throughout your organization. Problematic issues can be easily spotted and, in many cases, prevented, reducing the amount of time needed for management investigations and the creation of decision pathways that can result from such incidents. This also helps mitigate and reduce risk, in terms of the potential legal costs that are often the consequence of this type of problem.

Centralization with Contract Management Software

The right Contract Management Software will deliver centralization in a way that is tailored to your business, and in a way that will fully optimize all of your processes. This is achieved through a number of features.

  • Searchable contract repository – Keeping your entire contract catalogue in a central, searchable repository means that the costs of staff time are reduced, and instances of work duplication are eliminated. Your workforce has secure, browser-based access to all documentation, and can manage project milestones in a more efficient manner.
  • Confidence in current information – By ensuring that all information is up to date and available in a central, searchable repository, you can be confident that your staff is always using the current versions of templates and documentation, and that they have access to the very latest associated information.
  • Comprehensive standardization – Creating a centralized contract repository enables you to build a library of standardized terms, clauses, and processes within your Contract Management System. This is simply not possible when using separate spreadsheets and databases across multiple departments, but it is essential for ensuring compliance.
  • Localization processes – Once you have a centralized contract repository with a library of templates and standardized clauses and terms, it is possible to improve contract localization, which ensures that the contents of your repository is refined through categorization of clauses based on industry and geographical location. This is particularly important in anticipating potential issues where the commercial activity takes place across multiple territories, involving differences in regulatory and compliance processes.

Among the features that are fundamental to the effective utilization of a central contract repository is customizable reporting. This goes hand-in-hand with a comprehensive search function in terms of the opportunities of revenue generation that are created. Having the ability to search your entire contract documentation catalogue is a powerful tool but, when this is combined with focused reporting, your workforce is able to keep your Contract Management System under complete control.

Your customizable reports can provide you with documentary evidence of every data set involved in your commercial operation. Reporting on past and current contract data can help you to predict client and supplier behavior in future agreements. It can help you plan for every contract milestone, renewal, and renegotiation. It can help you complete your due diligence with regard to third-party risk management. It can help you manage compliance, control your corporate entity, and optimize all obligations, financials, and timelines in outsourcing agreements. By centralizing the entirety of your contract catalogue, you can use customized reporting to tap into increased revenue that had previously been out hidden by a network of unrelated systems holding duplicated documentation.

The benefits that give you a competitive edge

Centralization through Contract Management Software, such as the Symfact software package ensures that your business has a competitive edge in an increasingly crowded marketplace. The benefits delivered by this software are vital for commercial success and continued growth. Call Symfact today to arrange your demonstration.