Contract management is the process of managing contract creation, execution and analysis to maximize the operational performance of businesses and to reduce financial risk. Contract management’s value comes from the time and money saved generating, reviewing, approving, signing and renewing contracts. These savings can make room for a company to expand its sales and increase its revenue.
Contract Management is not the only part of the sales cycle, but it is often the longest because it involves so many stages and stakeholders. Half of respondents to a 2016 SpringCM survey said their contract process takes at least four weeks. Compare this to the average time it takes to deliver a quote to the customer—about five hours. If a company truly wants to shorten the sales cycle, contract management is an obvious, but worthwhile, place to start, shortening the contract process to a period of days.
Today, organizations are leveraging technologies like CLM and contract management solutions to transform critical business processes, driving productivity, increasing visibility and reducing risk associated with critical business processes.
To learn more, read Contract Management 101, our comprehensive guide to contract management and the benefits of contract management solutions.