Automating contract management can bring a huge return on investment (ROI), according to new research.
Early adopters are reporting 150 to 200 per cent payback within a year on targeted, two- to three-month implementation projects, said AMR Research in a report entitled The Compelling ROI of Contract Management.
The report outlines how contract management is often the "missing link" in procurement projects.
Pierre Mitchell, vice president at AMR, said: "Contract management applications are systems that business users - not IT staff - use not just to create online contracts but to gain the decision-making power that comes with better visibility of contract information.
"Using these systems, managers are able to curb maverick spending by buyers, identify suppliers which are overcharging and catch contracts for unwanted services that would otherwise have automatically renewed."
Despite the challenges of defining a project's scope and digitising paper contracts, the report says that automating purchasing contracts can be a quick win for any enterprise that wants the benefits of increased visibility, better compliance and streamlined work flows.
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