Often companies lose at some point and a certain volume track of their contracts. This is not unwillingness or inability, but a purely structural problem. In an everyday business contract document can be viewed and edited by employees from different departments. Therefore, they circle, sometimes as the original, sometimes as a copy - but with current content than the original - resistant by a company. This acts Tourism then causes problems when sometime know just individual departments or even individual persons on the whereabouts of a contract file notice.
This means that the current affected employees or departments do not or only partly present contracts. This leads to further problems periods are not diagnosed or not complied with dates. The lack of transparency, the legal department and risk management may be able to contract negotiations not useful and accompany it comes to adverse financial statements for the company. Finally, the reporting is compromised because the contracts have to be gathered in tedious and may result in the non-transparent contract history to incorrect or outdated reports. The evaluation and comparison of contract volumes are indispensable for an efficient controlling.
Potential risks
It is the legal and risk-related evaluation of the contracts is tricky. Running certain deadlines unnoticed from the business possibly based from this point on invalid contractual components, i.e. only on habit - and this is no sound basis.
Or does not have to at some point meets all contractual obligations and the business partner can make default costs declared or declare the statute of limitations. Finally, long-term warranty rights and responsibilities, a recurring theme, as if contractual clauses need to be adapted by legislative amendments or changes to the personal liability framework of the Parties. Such risks and the associated costs can be avoided only by the full, continuous monitoring of deadlines and services.
External pressure for action
In addition to the demand for better visibility and traceability - which is usually motivated by cost factors - and a valid risk assessment or active risk avoidance, there is a third motivator compliance. Their development and implementation is often required by external bodies, such as accountants or business partners with an appropriate quality management.
9 Tips for Contract Management
Basis for satisfaction is a true collaboration between users and providers of the beginning. A common inventory is as important as the definition of corporate objectives in relation to the outsourcing. Central is also that users are always involved in the processes. Nine have the advice of experts ready for contract management, that are used to permanently achieve a good quality of service.
1. Correct prices
The price should be acceptable for both sides. Outsourcing experts can help you to find the right balance between optimal cost and impact on the quality of service, advises from experts.
2. Check performance
Users should know to what extent the objectives of the Treaty could overwhelm the provider. Especially in global outsourcing projects must be ensured that the required service is available in all countries.
3. Caution with external
According Expert users should ensure that the outsourcing service only third parties entrusted with the performance, if you have been convinced of their effectiveness. In this case, should be provided in case of bad performance in the contract specific arrangements.
4. Realistic Service Level
Only as much as necessary, is the motto. One striking example of analysts Does the work of a receptionist really 99.999 percent availability per month
5. Control limits
Arrange only so many service levels, how can you monitor realistic, said Expert. Otherwise rut sneaks, and the suppliers use the situation perhaps from.
6. Ensure measurability
The proposed method of measurement applies to considering it carefully.
7. No false cash cows
Liability rules and warranty claims are loud Experton not there to make money. In other words, You drive better when you mutually supportive in meeting the objectives of the Treaty and do not want to cash in at the wrong place.
8. Flexible capacity
It should contractual arrangements exist for when to change the volume packages - also ensures that fewer resources are needed.
9. Correct reference conversations
You do not want to talk to the customer, where everything is great and works well, writes the user Expert on studbook. You want to talk, especially with customers, where the quality of service suffers and the provider has difficulties.
A Systematic solution
A digital contract management provides a systematic solution, processed with the contracts comprehensively monitored, evaluated and can be stored safely. In addition, the contract management can actively use to create or terminate contracts. So, almost the entire spectrum is displayed seamlessly on contract processes.
Added to this is the electronic archiving of contract documents. But legally, the probative value of paper-based contracts are assessed higher than the digitized files, it would be negligent to put only on an electronic archiving. For this reason, an archiving solution does not have to be part of the contract management. However, one decides for you should pay attention to the seamless integration of the two solutions.
Comprehensive or targeted
Thinking companies on the introduction of a digital contract management, it is often the first thought that future digital manage all contract types. However, this is only in the rarest of cases makes sense, let alone cost-effective to implement.
Companies benefit usually not assume to manage standard contracts with always the same terms, as the end customer contracts in a special software solution. These leases arise for a little risk. Moreover, it is hard to imagine that there are relevant to the daily business information that is exclusive only to be found in those treaties. A CRM system is usually the best source.
Supplier, rental, credit line and individual service contracts, however, are destined for the digital management. Given the complexity of the contractual conditions as well as the relationship between the individual contracts, a contract document solution reaches their full potential. The contracts are then permanently available to all eligible employees - and, assuming an intelligent rights and role concept, even for this. The entire life cycle of the contract with all documents, notes, appointments and deadlines, protocols, and the change history is available with a few clicks. This in turn improves the ability to provide information to the relevant department and facilitates contract controlling.
Structure and functions
The core of each contract file is a clearly defined, clear - and optically always same - basic structure, so that each employee is found on their way quickly. This should also apply to contracts whose origin was supervised by another department or employee. Through unique, not to be continuous workflow core information is collected also for each file to ensure the basic quality of contract management throughout. These include the acquisition of external contractors with which the contract was concluded. Then the internal contractors within the organization who has concluded the contract or carries the textual responsibility as well as capturing the State responsible for contract administration or legal department. In addition, of course, is also the signed contract document itself and other contractual data content classification of the contract, the contract type and confidentiality.
An intuitive, user-friendly and customizable interface makes it possible to map the various tasks of the individual departments. This also means that the workflows contract management be adapted to the needs of the company. Decisive for a productive use has also been a powerful search function and a practical, the wording of the enterprise imaging of keywords, which can be expanded and adapted at any time.
Introduction
As with all other integration projects in the IT is also available for the implementation of a contract management proven best practices. Before the actual start of the project, all participants and leaders should agree in a workshop on essential points. These include the business objectives pursued by the introduction, the extent and nature of the to be acquired contracts for the company matching file structure and corresponding workflow, the roles and permissions concept and finally the technical requirements with respect to a seamless integration into the existing system landscape , It is also important to clarify how the existing files to be digitized, in-house or by an external service provider
This all clarified; the introduction is usually only a standard procedure.
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