Contracts are the underpinning of any business.
An organization can have thousands of active contracts at one time, each with different variables of price and service levels, as well as many other terms and conditions. Traditionally, technology has played a vital role in contract management. Through digital transformation, the process of putting together a contract has become more efficient.
Cloud Computing has an impact on contract management leaders, as they have to monitor the availability of stored contracts. While not every employee needs or even should have access to contracts, it is still important for contracts to have visibility throughout a company. This is critical for monitoring contracts, reducing corporate risk, and attaining compliance.
Contract applications can be implemented to ensure all departments have visibility and access, thus increasing the usage and adherence.
Successful contract management involves the close monitoring of key metrics including automatic renewal dates and contract tolerances such as spend amounts, minimum quantities, pricing, and other factors.