Given the rapid expansion of global industry in recent times, and an increasing reliance on third parties to provide services and goods as part of the supply chain of an organization, it is only logical that there has been a rise in contract management software as a solution to streamline and manage the increasing number of, and reliance on, third parties and the contracts associated with an extended enterprise.
The majority of businesses or organizations that deal with numerous contracts on a regular basis can benefit from such software, however, there are often particular challenges faced by businesses that means contract management software can have a bigger impact in certain industries, like the ones listed below.
Contract management software is the perfect solution for managing the considerable number of complex supplier & vendor contracts within the Aviation industry.
The Aviation industry can be a highly challenging industry. With a huge supply chain, the vendor management must work efficiently on every level and at every stage, from procurement of contracts to offboarding a vendor on contract termination or during the exit strategy. There must be a framework in place for governance and control of end-to-end contract lifecycles. As expected in an advanced industry such as aviation, technology and automation can play a big part in the management of such a large extended enterprise. By employing contract management software, airlines and associated businesses and organisations can ensure all the key elements and processes involved in the lifecycle of any contract run smoothly and efficiently, which not only improves productivity and revenue, but helps with risk management, security and protects the company from financial and reputational damage due to non-compliance with regulations.
Distribution, Trade & Retail
Contract management software solutions are ideal for the Distribution, Trade and Retail industries. The software can help businesses to manage all types of contracts and supply chains productively and efficiently, including any complex supplier arrangements. By streamlining the entire process the software can help businesses to maximise efficiency and reduce costs whilst providing the necessary framework to successfully manage and monitor any third-party relationships and the value they bring to a business.
For any business dealing in distribution and trade, speed and efficiency are key elements for continued success and profitability. Delays and missed deadlines can have a significant impact on businesses and can have a detrimental effect on a business’s ability to stay competitive. Trigger based alerts are a feature provided by most contract management software and systems. You can use this tool to configure and track important data and by setting milestones in the software, you can set alarms and receive notifications for specific tasks and events, ensuring nothing ever falls under the radar, including deadlines and deliverables and contract re-negotiation dates.
In this technologically dynamic sector, flexibility, and the ability to coordinate projects in multiple locations are fundamental requirements.
Contract management software allows for instant accessibility from anywhere with an internet connection, the single platform a useful feature for an industry that often has complex contracts and a global supplier base. By using automated software to streamline and simplify the contract process, businesses in the Energy sector can reduce and control costs and become more efficient.
As the Financial Services sector is coming under increasing pressure to improve both performance and revenue with the onset of globalization, there also comes an increasing amount of regulation and compliance to be adhered to. Especially when the contracts themselves are expanding in terms of amount and complexity. Contracts are often key to financial organizations and as such, good contract management is essential to meet the needs of governance and compliance with regulatory and industry bodies, whilst minimizing any risk to the company and improving revenue.
For any business in the financial services, contract management software can streamline the governance processes of a contract lifecycle, improving the productivity of a business and allowing regulatory compliance to be securely dealt with.
Another specific benefit for the financial sector when implementing contract management software, is being able to extract valuable business insights from the data produced by the software, which allows businesses and organisations to quickly report and audit financial data, maximizing any competitive advantage.
Industry & Manufacturing
In the manufacturing industry, streamlining processes to increase productivity and efficiency are often key to the success of your business. Managing the complexities in the supply-chain often requires a huge amount of time and effort – costing your business. If you are looking for solutions to management that can help you increase your profitability and revenue, improve performance and operations, and give you an advantage over your competitors, all while minimizing any risk to your organization, then implementing an automated Contract management system can be of huge benefit to your business.
Contract management software allows businesses to confidently manage the progression of projects and contracts from a single, centralized location that can be accessed across time zones and locations. By being able to track the lifetime of a contract whilst effectively managing risk and compliance, you can optimize both sales and supply side agreements whilst improving overheads and containing cost.
The Pharmaceutical sector is traditionally a technologically advanced industry, so contract management software is hugely beneficial to efficiently manage all parts of the contractual process whilst optimising sales operations.
Managing risk and ensuring compliance is often a complicated task for the pharmaceutical industry. Not only do organizations have to manage policies and procedures, but all trading activity, record keeping and managing all the administrative tasks regarding all information on the services procured. Contract management software is designed to make that process simpler and help protect your business with fact-based decision making and control over records and regulations.
With the complex contracts and supply chain required by pharmaceutical companies, combined with the ever-changing and strict adherence to regulations in the sector, it is imperative to have a contract management solution in place to ensure compliance and avoid financial consequences.
By implementing an automated software solution like the one from Symfact for example, pharmaceutical companies can start taking control and improving governance from procurement through to off boarding a third-party supplier.
Current market trends are pushing businesses to expand their services, which means there is an increasing reliance on outsourcing business operations. Many companies are looking to implement a better system to manage their outsourcing, including the management of the risk involved.
Contract management software, especially tailored for outsource contracts, can help businesses manage the complete contracting process from the outset to conclusion. Multiple users can access every level of the process, ensuring optimal engagement for all the parties involved, which improves client relationships. Whilst being able to extract data and reports can provide valuable business insights as to the value of each contract.
One of the specific tools of the contract management software offered by Symfact, is Clause and Obligation Level Control. This means that each obligation within an agreement can be managed separately on its own merit. This helps improve the definitions and refinement of detail in each obligation and what is expected and required of both parties involved in an outsourcing agreement; supported by data and documents that are easily accessible. This gives the maximum amount of visibility which in turn enables not only better control, but also can increase the efficiency of the day-to-day governance of your business.
Due to the nature of the Professional Services sector, many businesses are subject to strict regulation and compliance control. Contract management software and its tracking and reporting features allows every element of a contact to be traceable. From pre-negotiation to post completion, businesses can have effective oversight and control over the entire contract lifecycle.
Software can help businesses reduce delays in service and increase efficiency and productivity, enabling a reduction in operating expenses whilst driving successful customer engagements.
When using this software, all documentation is stored in a single, secure location, ensuring businesses gain enhanced control and visibility of the entire contract process in a paper free environment, a particular hot topic for many customers, many of whom want businesses to be seen taking more corporate responsibility for climate change and the environment.
Inefficient management of contracts in the public sector can be hugely costly. By implementing contract management software, customers in the public sector can improve contract performance and reduce their costs and overheads.
The software can simplify the contract and commercial process, enabling organisations in the public sector to have greater control in the management of the contract process. This reduces delays and increases efficiency and productivity.
Auditing features ensures all actions and changes made to any contract are fully tracked with a time stamp and the user’s information, allowing organizations to operate under full visibility.
Contract management software and the automation it brings should be widely embraced by businesses in the Technology sector.
Thanks to cross-platform XML architecture, some providers offer contract management software that can integrate with a range of different contract management systems and software. Existing tools that are already being successfully utilized within the company can also be retained and implemented into the new contract management system. This flexibility of the software means it can be easily adapted to meet the challenges of this evolving sector.
By using the software to extract business insights and identifying any areas for improvement, not only can businesses maximise their direct and channel operations, but they can improve on client relationships. Communication is also improved across the organisation as any project updates can be shared across time zones and locations and are easily accessible for all.
If your business is involved in any of the sectors above, or if your industry wasn’t mentioned in this article but you believe that industry specific contract and document management software would be beneficial to your business, then please contact us here at Symfact. Our wealth of experience in contract management means we can tailor the perfect solution for you.