Contract management: Up to 41 percent savings through greater efficiency

For many years, the term cost reduction has been part of IT managers’ basic vocabulary. Indeed, companies today have much higher financial pressures as a result of globalised markets than a few years ago. All the more remarkable that contract optimisation is still often neglected by many companies.

 

Typical cell phone bill…

You probably also know: Actually, you find your monthly cell phone bill too expensive – but somehow you miss getting the right appointment to shift to a new provider or a different tariff. You have already been stuck in your current tariff for at least twelve months .

 

Considerable savings potential through workflows

Now that may be all right in private, but a medium-sized company that provides its employees mobile phones and/or other mobile devices already loses substantial savings through lax handling of deadlines. Experts from PricewaterhouseCoopers estimate that effective contract management can reduce global operating costs by two percent. In contract management alone, 41 percent of savings would come from greater efficiency thanks to automated workflows.

 

The famous small livestock …

It may be a truism, but “even small livestock make manure”. Particularly as similar potentials are hidden in many other fixed-term contracts. From leased company cars to furniture, leased plants, contracts for regular services to the supply of electricity and gas, in any case a field that doesn’t really impel Germans to dynamic change propensity.

 

“Too much to do” is not applicable any more

Whoever has been talking their way out of tight deadlines and making excuses for little time or even the abundance of contracts, is in for some bad news. For digital contract management ensures that no deadline is missed and when in doubt, can be renegotiated for more favourable conditions early on. The good thing is that in this way, realised savings are not at the expense of the employees and motivation in the company. And if it is really necessary to drastically save some time, it is at least clear that one has already exhausted all other sources. That alone is already reason enough to implement a corresponding solution