In a world where your pizza chain can tell you exactly where your pizza is and when it will arrive, why can’t large companies keep track of their contracts, including critical obligations and renewals? PwC estimates the average Fortune 2000 company has between 20,000 and 40,000 active contracts. When these contracts are sitting as unstructured data in a repository that’s difficult to search — or even worse in someone’s desk — bad things happen. One technology consulting firm missed $1.5 million in revenue recognition when a manually-tracked SOW expired. Discounts and rebates are overlooked, and unwanted renewals happen on autopilot.
Poor contract visibility is just one of five big contract management failures that put companies at risk for lost revenue and added cost, whether the bulk of contracts are buy-side, sell-side or enterprise-wide. We’ve published a helpful infographic that explores these big five contract management risks. Take a few minutes to see why your firm may be at risk for critical threats like:
- Noncompliance fees and fines
- Inconsistent supplier pricing
- Rogue spending