“We have tracked a differential of around 7% in revenue between organisations with formal contract management disciplines and processes, and those without”
Tim Cummins, CEO,
International Association for Contract & Commercial Management (IACCM)
For 85% of companies, contract management based on highly inefficient excel or in-house systems, it wastes time, mistakes are made and unnecessary costs are assumed to be part of doing business.
Research from companies such as PricewaterhouseCoopers, Aberdeen Group and Goldman Sachs have shown that Effective Contract Management can deliver the following costs savings.
| Administrative costs | Reduce 25% - 30% |
| Revenues | Improve 1% - 2% |
| Rebate/discount management | Improve 25% - 30% |
| Material/service costs | Reduce 2% - 7% |
| Contract renewal rates | Improve 25% |
| Evergreen contracts | Eliminate auto-renewal terms |
| Contracting cycles | Cut contracting cycles in half |
| Procedures and terms | Standardise processes and terms to mitigate risks, ensure proper approvals, enforce polices |
| Documentation and reporting | Cut reporting cycles from days to minutes |
