Management is considered to be the life and blood of any organization. The literal meaning of management is a set of principles relating to the functions of planning, organizing, staffing, directing and controlling, and the application of these principles to tap physical, financial, human and informational resources effective to achieve the objectives of the business.
In this context, the type of management which is a key determinative factor of the success or failure of any business is contract management. It refers to the processes and procedures that companies may implement in order to manage the negotiation, execution, performance, modification and termination of contract with parties like vendors, customers, distributors, contractors, financial institutions and all others associated with the company on contractual basis.
Contract management is important to:
- Promote operational efficiency.
- Capitalize on opportunities.
- Maximize growth.
- Mitigate risks.
- Increase goodwill and image of the business.
Let is probe into the revenue loss suffered by an organization due to poor contract management:
- Escalation of costs upto 9% of annual revenue.
- Opportunity costs.
- Penalty costs.
- Future saving costs.
- Redundancy costs.
This is where the role of Limitless Technology comes into the scene. It is web-based software that fully manages all vendors, maintaining accurate control and visibility over vendors as well as expenses. The merits of using Limitless Technology are as under:
- Effective – Helps in driving service excellence.
- Profitable – By mitigating risks associated with vendors.
- Comprehensive – Wide coverage into vendor services, contracts, rates, terms, conditions and payments.
- Improved tracking – Can streamline budget process, document repository, improvise financial planning and analysis.
- Track on complete inventory – Automates and loads all contracts and billing in the portal streamlining invoices, agreements and vendor information at fingertips within seconds.
- Increased productivity – Helps in saving business upto 20% annually, allowing employees to focus on more productive projects.
- Reduction in administrative overheads – In terms of both time and resources.
- Long term discounts – Company in good standing with vendors can earn additional discounts.
To sum up, Limitless Technology can prove as a one step solution for effective vendor contract management, increasing savings, reducing costs, overall leading to increase in productivity as a whole. Contact us today for a free consultation and DEMO