In today’s data-driven world, businesses are increasingly relying on accurate and timely information to make informed decisions. Contracts are no exception; they are not just legal documents but valuable sources of data that can provide insights into supplier performance, compliance, and overall business health. However, without a centralised Contract Lifecycle Management (CLM) system, gathering and analysing contract data can be a manual, time-consuming process that limits the ability to generate accurate reports. This lack of visibility hampers strategic decision-making, leading to missed opportunities for improvement and growth.
In this blog post, we will explore the challenges businesses face when managing contract data manually, the benefits of implementing a CLM system with robust reporting and analytics capabilities, and how these tools can help businesses make better, more informed decisions.
The Challenges of Manual Contract Data Management
Managing contracts manually is a complex and labor-intensive process - a consistent theme across all our blog series so far. Contracts are often stored in various locations—shared drives, individual emails, physical files—making it difficult to access and analyse the data they contain. When businesses attempt to extract meaningful insights from these scattered documents, they face several challenges:
1. Time-Consuming Data Collection
Without a CLM system, gathering contract data often involves manually searching through multiple locations to find the relevant documents. Once found, the data must be manually entered into spreadsheets or databases for analysis. This process is not only time-consuming but also prone to errors, such as data entry mistakes or overlooked contracts. The time spent on these tasks could be better utilised on strategic activities that drive business growth.
2. Limited Visibility and Insights
When contract data is managed manually, businesses often lack a comprehensive view of their contracts. Key metrics, such as contract value, supplier performance, and compliance status, may be difficult to track accurately. Without this visibility, it becomes challenging to identify trends, monitor performance, or spot opportunities for improvement. For example, a business may miss the opportunity to renegotiate terms with a supplier due to a lack of insight into the supplier’s historical performance.
3. Inaccurate and Delayed Reporting
Manual processes are inherently slower and more error-prone than automated ones. As a result, reports generated from manually collected data may be outdated by the time they reach decision-makers. Inaccurate or delayed reports can lead to poor decisions, missed opportunities, and increased risk. For instance, a business that cannot quickly assess its contract obligations may inadvertently breach a contract, leading to legal and financial consequences.
4. Missed Strategic Opportunities
When businesses lack real-time access to contract data, they miss out on strategic opportunities. For example, without timely insights into contract performance, a company may not realise that certain contracts are underperforming and need to be renegotiated. Similarly, without visibility into supplier performance, a business might continue working with a suboptimal supplier, missing the chance to secure better terms with a more reliable partner.
The Solution: CLM Systems with Robust Reporting and Analytics
A CLM system can transform the way businesses manage and analyse their contracts. By centralising all contract data in a single, accessible platform, a CLM system eliminates the need for manual data collection and provides powerful tools for reporting and analytics. Here’s how a CLM system can address the challenges outlined above:
1. Automated Data Collection and Centralisation
One of the most significant benefits of a CLM system is its ability to automate the collection and centralisation of contract data. Instead of manually searching through emails, shared drives, or filing cabinets, all contract information is stored in a single, centralised repository. This makes it easy to access, manage, and analyse data from any contract at any time. Automated data collection reduces the risk of errors and frees up valuable time for employees to focus on more strategic tasks.
2. Enhanced Visibility and Real-Time Insights
A CLM system provides businesses with enhanced visibility into their contracts by offering real-time access to key metrics and performance indicators. With built-in dashboards and analytics tools, decision-makers can quickly assess the status of their contracts, monitor supplier performance, and identify trends that may require action. For example, a business can easily track which contracts are approaching renewal, which suppliers have consistently met their obligations, and which contracts are generating the most revenue.
3. Accurate and Timely Reporting
With a CLM system, businesses can generate accurate and timely reports with just a few clicks. These reports can be customised to meet the specific needs of different stakeholders, whether they are looking for insights into contract performance, compliance, or financial impact. By providing up-to-date and accurate information, a CLM system ensures that decision-makers have the data they need to make informed choices. This can help prevent costly mistakes, such as renewing a contract with unfavorable terms or failing to meet contractual obligations.
4. Data-Driven Strategic Decision-Making
Perhaps the most significant benefit of a CLM system is its ability to support data-driven decision-making. With powerful analytics tools, businesses can gain deep insights into their contracts and use this information to drive strategic planning. For example, by analysing contract performance data, a company can identify which contracts are delivering the most value and which are underperforming. This allows the business to prioritise renegotiations, terminate unprofitable contracts, and focus on building stronger relationships with high-performing suppliers.
Key Benefits of a CLM System with Reporting and Analytics
Implementing a CLM system with robust reporting and analytics capabilities offers numerous benefits that can enhance business performance and decision-making. Here are some of the key advantages:
· Centralised Data Management: A CLM system centralises all contract data, making it easily accessible and eliminating the need for manual data collection.
· Real-Time Visibility: With real-time access to key metrics and performance indicators, businesses can quickly identify trends, monitor performance, and make informed decisions.
· Accurate and Timely Reports: Automated reporting tools ensure that decision-makers have access to accurate and up-to-date information, reducing the risk of errors and delays.
· Enhanced Strategic Planning: By providing deep insights into contract performance, a CLM system supports data-driven strategic planning, helping businesses identify opportunities for improvement and growth.
· Increased Efficiency: Automation reduces the time and effort required to manage contracts, allowing employees to focus on more strategic activities that drive business growth.
Empower Your Business with Data-Driven Decision-Making
The ability to make informed decisions quickly is critical to success. Contracts play a vital role in shaping business relationships and financial outcomes, but without the right tools, managing contract data can be a daunting and inefficient process. A CLM system with robust reporting and analytics capabilities provides the solution businesses need to unlock the full potential of their contracts.
SaaSam is a recognised partner of Agiloft and we have been leveraging Agiloft’s no-code CLM platform for 12+ years. By implementing an Agiloft Contract Lifecycle Management (CLM) system, your organisation will be able to make data-driven decisions that drive strategic planning and improve performance. Whether it’s tracking supplier performance, monitoring compliance, or identifying opportunities for renegotiation, a CLM system ensures that businesses have the information they need to stay ahead of the competition.
Don’t let manual processes and limited visibility hold your business back. Invest in a CLM system with powerful analytics and reporting tools, and take control of your contracts with confidence. With the right system in place, you can transform your contract management process, make informed decisions, and seize opportunities for improvement and growth.
If your organisation would like to make the jump to higher level of contract management maturity with the Agiloft Contract Lifecycle Management solution, reach out to SaaSam here.
About SaaSam
SaaSam is a global software consulting and implementation provider, with a proud association and history of delivering solutions through software. SaaSam has been leveraging some of the world’s most innovative no-code and low-code software platforms that empower our customers to drive business outcomes.
SaaSam is headquartered in Cambridge, New Zealand. We have a team of 26 expert employees spread across five company offices in New Zealand, Australia, the United Kingdom, the European Union (Ireland), and the United States. SaaSam has long-standing relationships with a diverse range of successful organisations across the following industries: IT and Telecommunications, Finance and Banking, Primary Industries (mining and horticulture), Pharmaceuticals and Biotechnology, Utilities, Government bodies and many others.
Our culture, driven by values of Integrity, Innovation, Commitment, Passion, and Accountability, embodies the Kiwi spirit.
