Contract management software can help businesses manage expenses and increase net revenue.
By gaining greater control of their contracts.
Contracts are often low-hanging fruit that can be easily culled for untapped value when you apply the right contract management solution. In addition, contract management software allows you to dive deep into your contract repository. By investing in contract management software, organizations of all sizes and industries can earn more and operate more cost-effectively.
Quantifying Indirect Costs
There’s no doubt that the creation and maintenance of contracts pose a significant cost to companies, especially when it comes to the management and administration of those documents. While direct costs - like staffing and outsourcing - are easy to mark on your balance sheet, indirect sources can be harder to quantify.
These indirect sources run the gamut from unfavorable commercial terms, automatic renewals for services no longer needed, missed opportunities to renegotiate terms, and other penalties or fees. When an organization gains control of their contracts, they gain the ability to demonstrably improve their bottom line by controlling costs and revealing new sources of revenue.
Contracts as a Strategic Value Center
Your contract’s revenue opportunities include the opportunity to capitalize on temporary discounts as well as the chance to renegotiate contracts. But to turn your contracts into a strategic value center, you first need to understand your repository.Your contracts contain clauses, terms and conditions, milestones and more, but if they’re not easy to find, your organization can miss out on earnings opportunities.
Thankfully, the data and analytics available in today’s contract management software can help legal departments make more strategic decisions, which – in turn – can help the department evolve from “cost centers to more strategic value centers.”
Unlocking Potential with Contract Management Software
Contract management software can unlock the value in your contracts by providing you with improved transparency and oversight so that you can find new ways to cut costs and generate revenue. While you have lots of choices when it comes to choosing the right contract management solution, you first need to know where you are, where you are going, and the potential profit you can distill from your contract repository.
Ready to learn more about optimizing your contract repository’s profit potential? Download your complimentary copy of our latest ebook, Unlocking the Value in Your Contracts and learn how you can urn your contracts into a profit center for our organization.