No matter the industry your organization is in, contracts are a major component of daily operations. Contracts are created for business partnerships, labor, vendor transactions, customers, and more. Restaurant owners hire vendors for various produce and animal products. Human resources personnel create contracts when they hire employees and when there are changes to the employee handbook. Educators create contracts when enlisting the services or products of vendors.
Given this, it's easy to see why efficient contract management is important. Just consider the following statistics:
- Goldman Sachs estimated that companies spend almost 5% of their revenue to track agreements after signing a contract.
- PricewaterhouseCoopers has found that 12% of a company's total annual costs may be devoted to contract management and administrative tasks.
There is a myriad of reasons why contracts cost so much time and money. Many companies still have manual systems where silos are commonplace. Searching contracts is often cumbersome and takes extensive labor time. Because the terms of a particular contract are difficult to find, compliance is almost always lacking. In addition to that, many contracts renew automatically if no action is taken beforehand.
Let's say a business is not particularly happy with one of its vendors. If management does not cancel the agreement before the contract ends, it could automatically renew even if this isn't what management wanted. Lost opportunities and bad contracts could cost companies in a very profound way.
The Case for Contract Management Software
Luckily, there is a solution that can help businesses better manage contracts to save money and time and improve operational efficiencies. Cobblestone Software has helped thousands of companies strengthen their contract management system. Cobblestone's contract management software is cloud-based and features deadline alerts, revision tracking, and a robust search engine.
Companies looking for a secure contract repository where they can manage the complete lifecycle of a contract, from contract creation to contract cancellation, will find our software solution more than satisfactory. In addition to that, Cobblestone's contract management software supports compliance with HIPPA and many federal regulations. It also facilitates paperless contract creation and e-signatures for partners and vendors in other parts of the world.
Not convinced just yet? Here are a few other statistics that show just how well companies do when they implement a contract software management solution:
- Goldman Sachs reports that companies using contract management software can reduce annual contract management expenses by 20 to 50 percent.
- The Aberdeen Group has found that best-in-class companies average 85% of purchasing transactions compliant with contracts vs. 30% for all others. It has also found that best-in-class companies have more than 75% of their contracts in a searchable repository – others have contracts in a searchable repository only a third of the time.
Contract management software is a no-brainer if you want to lower costs and improve how you create and manage your contracts. Contact us today to learn more about how our software works.
About CobbleStone Software and Contract Insight™
CobbleStone has helped thousands of contract professions better manage their contracts, risk, and compliance since 1995. Learn more about Contract Insight Contract Management Software by visiting us at https://www.CobbleStoneSystems.com and sign up for a free demo.
866-330-0056 | www.CobbleStoneSystems.com