Sustainability is the hot topic in companies. And the topic is far from being a fashion trend in the corporate world, but rather a sense of obligation and urgency, both for the organizations themselves and for Planet Earth.
It is a fact that today the search for methods that have a positive impact on the environment, promote conscious consumption and contribute to the well-being of society makes a company increase its market potential, its value and also its image before customers.
However, more than a trend, this is a consequence of an increasingly demanding and less alienated consumer, who prefers to opt for brands that, like him, have a holistic view of the market.
Sustainability vs. Profitability
On the other hand, the performance and profitability of processes are points that cannot be left aside in the race for sustainability.
Questions like “Is it possible to be more sustainable without impacting the company's results?","Is there a way to balance the needs?"and "How to be more sustainable without losing performance?” are still recurring, but they are moving towards almost organic and intuitive solutions with the help of technology.
In the near future, profit and sustainability will be able to go hand in hand without raising so many doubts and conflicts of interest.
Opportunities for contract management
In the B2B universe, more precisely in the purchasing area, Contract Management is one of the practices that challenges the issue of sustainability.
Some people still say that it is difficult to be sustainable due to the huge volume of contracts and papers that are handled daily. In addition, documents are often not disposed of correctly, materials are not reused, and there are many other obstacles.
And while these current problems exist, others – even older ones – persist.
According to a survey by Aberdeen, 44% of companies are looking for greater visibility into their contracts and 40% are looking to reduce risks with their suppliers. In addition, 37% of organizations want to have greater compliance with supplier contracts and 34% want to have access to supplier performance in their agreements.
Now a question remains: how to solve these problems?
And always amidst the difficulties that arise, great solutions. That's what we're going to show you below!
CLM: technology for performance and sustainability
CLM, or Contract Lifecycle Management, is a contract management tool, which is the first step towards gaining more control and governance, in addition to solving numerous common management and, of course, sustainability problems.
The solution encompasses the management of the entire contract lifecycle, monitoring the links agreed with suppliers, partners, customers or employees, in order to avoid disruptions, monitor and organize a company's agreements.
Efficient contract control enables a complete understanding of each stage of the process, allowing the creation, execution and analysis of documents to be managed. Actions that maximize an organization's operational and financial performance.
CLM to avoid corporate risks
A good CLM solution helps to comply with renewal deadlines, expiration dates and quantities to be negotiated, in addition to offering a 360-degree view of all agreements, which helps the organization to identify possible deviations and reduce contractual risks during their life cycle.
And as we already know – and we have seen many recent examples in the newspapers – contractual risks go far beyond fines, supply shortages and brand image issues. They are also those that can harm ethics, and the natural and social spheres.
With terms, conditions and clauses centralized on the same platform, it is possible to shorten sales cycles, reduce costs, generate analyses for risk management and gain performance.
Contract management is an important step towards simple, intelligent and, above all, sustainable B2B commerce.
Finally, by using a digital platform, you also eliminate large volumes of paper and material waste, helping the company to save money and increase value from the most basic actions.
Interested in learning more about how Contract Management can transform your business? Click here and read the post!
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