Technology can drive value from contract management

5 October 2012

Want the latest procurement and supply chain news delivered straight to your inbox? Sign up for the Supply Management Daily

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.”

LATEST
JOBS
Swindon, Wiltshire
upto £40K base (+ Paid overtime and corporate benefits)
Honda Manufacturing Ltd
Kew gardens, Richmond upon Thames, London (Greater)
£37,000 - £42,500 per annum pro rata, depending on skills and experience
Kew Royal Botanic Gardens
SEARCH JOBS
CIPS Knowledge
Find out more with CIPS Knowledge:
  • best practice insights
  • guidance
  • tools and templates
GO TO CIPS KNOWLEDGE