Post by account_disabled on Mar 10, 2024 22:22:49 GMT -5
The large number of actors and factors present in the execution of a contract generates uncertain events, situations and conditions that hinder its fulfillment. In this sense, risk management allows us to mitigate this uncertainty and efficiently manage contingencies. However, the lack of visibility of contracts makes proper management and monitoring of these risks difficult, especially because at the moment contingencies arise, immediate access to the terms and conditions of the documents is required. This results in arbitration and judicial processes between principals and contractors, temporary cessation of activities and other situations that represent high-impact costs for the organization's finances. Costs associated with supply chain disruption efficient supply chain management is essential for the acquisition of key goods and services for the company. When you do not have full visibility of contracts with suppliers, stock management is not adequate and it is possible that the organization will have problems and interruptions in its production processes, assuming the financial cost of such an error. E-book cover you will also like our contract management manual costs associated with inconsistent pricing poor contract visibility makes it difficult to identify inconsistent contract terms, such as different prices for the same products and services, even with the same supplier. This results in “extra” payments that in the long term can represent significant sums of capital.
Costs associated with purchases outside the contract purchases outside of the contract may inflate costs, create inconsistencies, violate terms related to exclusivity, and result in the loss of bonuses or discounts. Legal team fees changes must be constantly monitored, both Germany Mobile Number List in simple transactions and in complex and highly negotiated contracts. The legal team has the need to perform parallel comparisons and reviews of multiple versions, taking away valuable (and expensive) time that could be spent on much more productive and strategic tasks for the business. It is common for some companies to lose large amounts of contracts or to archive them incorrectly, especially if the documentation is managed and stored manually. As a result, employees waste a lot of time every day searching the different servers in their company, even duplicating them. To this, we must add the risk that, once the file is found, it is an incorrect version of it. If the value of those minutes of the employee's annual salary is multiplied, and the consequences of waiting are added to the product, the result would be one of the hidden costs with the greatest impact for an organization.
All due to poor visibility of the contractual process . The value of efficient contract management we already mentioned the most important hidden costs due to poor contract visibility. The good news is that the most efficient solution to this problem is found in the implementation of contract management software, such as webdox clm . The intelligent webdox clm contract management ecosystem allows you to eliminate hidden costs from contractual processes by providing full visibility of each document and their correct administration. In addition, webdox clm makes it easy to centralize, automate simple tasks and generate notifications that help the areas involved track compliance, measure performance and develop risk profiles. It applies workflows that help organize the stages of a contract, access to the digital repository and the entire signing process digitally, guaranteeing compliance, integrity and security of the information.Many companies sign contractual agreements on a daily basis and make commitments to clients and other companies. Although most legal agreements are fulfilled, an important part of them would be at risk of not coming to fruition.