5 Challenges to Post-Award Contract Management

In our previous blog post in the post-award contract management series, we explained the term and established the significance of post-award contract management processes.

Today’s post will address the core issues we often face with post-award contract management.

Enterprises deal with thousands of contracts spanning various functions like legal, sales, HR, procurement, and so on. Manually managing this many contracts and tracking post-award contract compliance becomes problematic, to say the least.

The most common challenges to effective post-award contract management faced by contract managers everyday are:

 

    • Tracking global contracts: Organizations doing business globally have a range of stakeholders with varying expectations and needs. This results in different currency formats, varying terms, conditions, and specific escalation/ de-escalation clauses.
    • Gaining visibility into contracts: Contracts are stored in multiple disparate systems across the organization. This leads to a lack of visibility, which in turn causes a host of issues including: financial losses due to non-compliance, missed opportunities for revenue capture, and limiting the ability to minimize lost savings.
    • Measuring contract performance: Organizations must develop mechanisms to manage and measure performance continuously throughout a contract’s lifecycle. They need to define quantifiable targets (revenue growth, overall corporate risk, value for money, etc.) and have the means to track underperformance to install corrective measures.
    • Stakeholder Alignment: Amending contract terms and conditions is difficult without a common interface for collaboration among stakeholders.
    • Managing Renewals and Expiries: A common collaboration platform enables thorough review of auto-renewable contracts, which otherwise might renew without any re-evaluation or renegotiation based on contract performance.

 

The next and final blog post in this series will focus on the ways in which these challenges can be successfully addressed.

For more information on contract management, contact us at info@ultria.com.

Alternative Text
Author Stuti Mehrotra

Contact Us





Copyrights © Ultria.com 2018

REQUEST A DEMO