Contract management software is a tremendous tool for contract oversight and storage; however, these are not the only beneficial features of the software. In fact, it is the contract insights you can glean from reporting on the data contained within the contracts that makes the software so powerful.
In addition to contract oversight and storage, some contract management systems can provide reports on items like aggregate expenses, contract values, inventory, relationships, and much more. The power behind the software is its capability to build customized reports with specific metadata that can be the catalysts for improved efficiency, success, and growth. In short, when you have reliable data entry and a secure repository, good contract management software makes this data available on-demand, and in usable formats.
Contract Insights Using Customized Metrics
If you set up your contract management system carefully, you can run reports and gain insight on customized metrics such as spending analysis, inventory status, and compliance trends. Such reports in turn help you increase savings and efficiency, mitigate risks, and improve compliance. These types of customized reports are powerful when they are built on categories that make sense to your organization. In other words, these reports become helpful tools when they clearly provide insight on when and where there are deficiencies, and what actions would be effective.
For example, you can build a customized report that is based on spending by contract or by contracting party. Such a report would provide insight on whether a specific change in process has in fact been helpful, when compared to reporting of data that preceded the change.
Contract Insights to Improve Contract Management
The contract insights available using contract management software can also be used to improve overall contract management. Most good systems contain tools to help with functions such as contract searches, contract expiration planning, relationship management, and negotiation leverage, among others.
Searches and expiring contracts
Search features provide you with the ability to search the entire contract repository by filters or keywords, and to create automated and periodic reports accordingly. Reports of expiring contracts, for instance, are helpful because they allow you to better budget time and effort for a given period. While alerts provide a warning or a reminder of an expiring contract, reports are actually more insightful because they allow you to plan ahead and to prevent last minute surprises or emergencies.
Insights from contract management software also provide you with negotiation advantages through knowledge and better understanding. Based on historical data, reports allow you to find an advantageous balance based on potential savings and costs, and even to decide on a negotiation approach.
For instance, reports of historical and trend data showing improvements in compliance and contract value would allude to an advantageous on-going relationship, and thus advocate for a continuing contracting relationship.
In summary, contract management software is a powerful tool because of the contract insights that can be understood through reporting. A good contract management solution brings forth tremendous insights on tangible metrics, as well as on planning and strategies and can also provide insights that can help you make educated decisions and take beneficial actions.