Why should businesses use a contracts management system?
Managing large numbers of supplier contracts in paper format is a difficult task. The main reason is that they all begin and end on different dates and will be subject to different terms and conditions. It is time consuming , prone to error but more importantly, costly.
An automated contracts management system can store all company contracts in one place and helps avoid duplication. This can considerably reduce uncontrolled and unauthorised spending and constantly track and monitor expenditure.
Other major benefits of a contracts management system are:
- Automatic alert of expiry dates for auto renewal contracts gives time to review and if necessary re-negotiate
- Financial penalties to be paid by suppliers for non-compliance with terms and conditions can easily be identified
- Electronic document management facilitates the creation of contracts and the approval process
- Any amendments and updates can easily be made in electronic format
- Version control and an audit trail ensure that the most up to date version is being viewed and the history of changes has been retained
For further information on The IPC Group’s contract management system please call us on 08081 45 46 47.