Many organizations assume that gaining the visibility to make these decisions requires robust systems, master data management programs that cost millions, and a small army to stand up and maintain. The reality is much more achievable – although you need to do a bit of homework: What data and reports are often requested to satisfy audit and executive requests? What compliance standards are you required to track and ensure each contract meets or gain approval for an exception? This is your key contract data. You need to store this data in a way that allows you to access it easily as well as get to it in the contract so you can read the supporting details. This needs to happen in minutes, not hours or days.
You also need to know which contracts are up for renewal with enough time to act. Act, not react. Imagine having 90 days to review terms and conditions, seek bids from additional vendors, renegotiate with your current vendor and save your company money. You would improve the bottom line and guarantee that your active agreements are benefiting your organization, not just enduring. There are additional gains to be made from knowing which contracts have incentives and from where you could be collecting revenue if you knew it was due. You don’t need to join the collections department or chase people down for money, but you do need to know that these incentives exist and ensure that they are being collected by your company. Simply running a report on contracts that include incentives could quickly produce a list of contacts that can be matched to received payments by the finance department.