In the context of the pandemic, the migration of operations to remote work and the remote team management, which had been happening slowly, especially in Brazil, were some of the major disruptions in the corporate world. If digital transformation was once a smart choice, now it is practically mandatory. There is no longer any doubt that digital solutions are essential to boost any business.
To cope with these cultural changes, especially due to social distancing, organizations of all sizes and sectors have had – and are still having – to rethink their manual processes. The need to maintain the supply chain, reduce costs and increase profits has highlighted the importance of shopping area in simplifying and digitize your processes, such as hiring suppliers and managing contracts.
Contract management: main benefits
Contracts directly impact a company's profitability and are often complex. It is through contracts that buyers and suppliers make a commitment, specify the activities that must be performed and the terms that must be met. They structure rules, guidelines and obligations, reducing the risk of irregularities.
For this reason, if these documents are drafted poorly, they can result in wasted time and money and significantly harm an organization's activities. This is where the need for contract lifecycle management (CLM) comes in.
Contract Life Cycle Management (CLM) allows you to create, execute and analyze contracts with suppliers, as well as monitor agreements already signed. This process, which involves partners, is essential to maximize the company's operational and financial performance, in addition to contributing to risk reduction.
The benefits of contract management go beyond contractual obligations and reduced risk. With a well-structured contract management strategy, companies also improve the quality of products and services offered to customers and facilitate the auditing and purchasing compliance.
CLM Solution: Technology in Contract Management
A digital transformation in shopping is already a reality for many companies seeking savings, compliance and agility. The automation of the contract life cycle with a CLM solution frees buyers from manual controls, so they can focus time and effort on negotiations with suppliers. It also offers visibility, access to data in real time and control of changes to contracts, among other advantages, which optimize the process and control of documents by the legal department.
Discover all the benefits of a CLM solution by clicking here.
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