Achieving CLM ROI
Companies of all sizes manage a multitude of contracts each day, from purchase orders to vendor-client agreements. Poorly managed contracts can lead to a host of problems, resulting in significant monetary losses.
The average cost of a low-risk contract is $6,900, while a high-risk contract can cost as much as $49,000. What’s more, findings from a WCC study conclude that, on average, 9.2% of annual revenue is lost due to contracting issues — the figure is even higher for larger companies, 15%. Adding insult to injury, 71% of companies struggle to locate even 10% of their contracts.
Ways to Achieve CLM ROI
There are several ways that CLM can have a great ROI:
- Reduce contracting risk by improving contract visibility and monitoring capabilities.
- Increase visibility and improve the accuracy of contract data.
- Carry out contract analysis with real-time insights.
- Increase organizational efficiency with a streamlined contract drafting and negotiation process.
- Ensure contracts are never lost or inaccessible.
- Protect your organization from legal and financial risk.
- Decrease general contracting costs.
Poor contract management can have a devastating impact on an organisation’s bottom line. Reduce the risk of poor contract management, save time and money, and improve the consumer experience.