Manual handling of contracts is both error prone and time consuming, and yet most organizations have not yet automated these key business processes. Electronics OEMs should put automated contract lifecycle management (CLM) at the top of their to-do list, though, to achieve high visibility, decrease risk, and streamline complex processes.
"We are seeing early-ish adoption in the high technology sector," Steve Jones, vice president of Strategic Development at CLM vendor SpringCM, told EBN in an interview. "Certainly, the benefits are particulary apparent where there are a lot of renewable agreements or description-based contracts that come up for formal-review regularly."
Today, three out of four companies say that their contract process is not yet automated, according to a recent survey performed by SpringCM. "We were shocked that so many companies, although they are aware of the available solutions, haven't done it," said Jones. "Perhaps, it hasn't bubbled up high enough in the priority list or they have felt that the technology was out of reach." The company surveyed 822 business professionals from various industries on their contract management process and challenges in March.
Most (85%) are still circulating contracts via email—a process that makes versioning nearly impossible and in which many contracts are lost or misplaced. In addition, 42% reported that contracts are stored on shared drive, an approach that can make contracts difficult to organize and find and which may be prone to security glitches. "You can't address any of these problems without automating," said Jones. "These approaches are rife with the opportunity for errors, delays, and excessive approval cycles."
To see more of the survey results, click on the image below to start a slideshow.
Take a look and then let us know if and how your company is using CLM technology.
— Hailey Lynne McKeefry, Editor in Chief, EBN