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6 October 2012 | Anna Reynolds
Using technology to handle contract management can save 17 per cent and boost compliance with contract terms.
Speaking at the CIPS Annual Conference 2012 Ioana Canescu, a contract management expert and former head of global contracts and business management at US telecoms firm Tellabs, said: “Technology will give you intelligence from the contracts and drive most value for your company.”
Research from Emptoris found companies using technology to manage their contracts are 1.38 times more likely to avoid penalties for non-compliance with contract terms. It also found on average, poor or inefficient contract management can reduce a company’s bottom line by 9.15 per cent.
Canescu advised companies looking to implement contract management systems to put aside 10 to 15 per cent of total budget for change management. She also stressed the importance of training and investing money and resources. She said communication is key and companies should “look outside the box” when choosing which strategy will work best for them and act in unison with other functions across the business to implement widespread changes.
When deciding what information to look for in a contract and transfer onto a system, Canescu recommended businesses to “look for connectors – language that relates to warranty in a contract is always important. And use your common sense. You know what is most relevant to your business.”