ContractOne provides a comprehensive enterprise view into all your contractual commitments. This translates into bottom line savings for an organization on a variety of levels. The Return on Investment for implementing an automated contract management system is clear when you look at the benefits associated with that type of solution, including essential operational efficiencies. Read on to see how your organization can begin realizing significant cost savings by implementing ContractOne.
The Bottom Line
Contract Management Benefits
- A 3-5% reduction in procurement expenses
- 50-75% decrease in manual work related to contract negotiation and management
- Tens to hundreds of millions of dollars in increased net revenue through the avoidance of inflated contract liabilities.
- 90-100% reduction in costs related to regulatory non-compliance.
- 75-90% reduction in costs related to erroneous payments
- 50% increase in contract negotiation cycles
30% reduction in operational costs resulting from employee inefficiencies
The ROI
Some statistics, at a glance…..
- Fortune 1000 companies have 20,000 to 40,000 contracts.
- Companies spend 50 basis points of revenue managing contracts. Contract management software can reduce that cost by 20-50%.
- Contract management costs average 12% of annual costs.
- Contract management costs could be reduced 59-67% by eliminating inaccuracy and non-compliance through automation.
- A recent Goldman Sachs survey of senior financial executives reported that contracts control 78 percent of all corporate purchases and expenses.
- Companies spent more than $660 billion on contract-bases purchases last year.
- Goldman Sachs reports that companies spend up to 1 percent of their total revenue on managing their contracts.
- PricewaterhouseCoopers recently reported that eliminating contract inaccuracies and non-compliance could produce savings equal to 2 percent of a company's total annual costs.
- Analysts state that the co's that implement a contract management solution can accelerate negotiation cycles by 50 percent, reduce erroneous payments by 75%, and cut operating and processing costs associated with managing contracts by 10 to 50 percent.
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