Unlocking Hidden Insights in Contracts: What You Need to Know
November 18, 2024
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12 min
Businesses face significant revenue loss—averaging 9.2%—due to poor contract management. This number highlights the hidden costs of inefficient contract handling, leading to missed opportunities, compliance failures, and reduced profitability. Contracts contain vital information that can guide strategic decisions, yet many organizations struggle to access and leverage these insights effectively.
Traditionally, reviewing contracts meant reading through them line by line, an approach that was both labor-intensive and time-consuming. By the time teams extracted insights from numerous contracts, the information was often outdated or not actionable. To combat these issues, many businesses have adopted Contract Lifecycle Management (CLM) systems. However, challenges persist, such as overlooked contract renewals, limited visibility across contracts, and missed opportunities for better negotiations.
This is where advanced contract analytics steps in, bringing new efficiency and effectiveness to contract management.
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Contract analytics involves using technology to extract and analyse data from contracts, identifying key clauses, obligations, and risks. This approach provides timely and actionable insights, enabling organizations to make informed decisions.
Managing thousands of contracts manually or through basic CLM systems often results in inconsistent and incomplete data. Without an advanced analytics tool, CLM systems may fail to create a unified repository that accurately reflects all contracts.
While CLM systems are effective for storing documents, they often fall short in offering a comprehensive, searchable overview. This can mean critical data is overlooked, leading to strategic blind spots and compliance challenges.
Traditional CLM systems can require hours of manual searching to find specific clauses or key terms. This slows down decision-making and can cause missed opportunities for renegotiation or improved contract terms - opportunities that could save businesses millions.
Basic CLM systems may not provide automated alerts for contract milestones, resulting in missed renewals and lost revenue.
Advanced contract analytics systems can process contracts in various formats, including PDFs and scanned images, identifying and extracting metadata to create a unified and standardised repository across the organization.
These systems analyse contracts quickly, identifying important clauses and extracting relevant data so that teams have immediate access to critical information and can make faster decisions.
Integrating contract data from different sources allows organizations to analyse all relevant information in one place. This comprehensive view aids in maintaining consistency and ensuring that all contract details, obligations, and deadlines are accessible.
Contract analytics solutions often come with built-in alerts for upcoming renewals and key contract dates. This helps teams stay proactive, avoiding missed deadlines and ensuring favourable contract negotiations.
Incorporating contract analytics into your contract management process offers numerous benefits. Automating data extraction, improving visibility, and gaining real-time insights help reduce risk and streamline workflows. Companies that integrate these advanced solutions can maintain consistency, avoid costly delays, and make better, data-driven decisions.
Spendkey’s contract analytics solution is designed to help organisations elevate their contract management strategy. Trusted by industry leaders, Spendkey automates analysis with unmatched accuracy and seamless integration.
Schedule a demo today to discover how Spendkey can transform your contract management approach and empower your team for success.
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