FineTooth: Contract Management Provides Key Benefits for Sales Contracts

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AberdeenGroup research highlights the benefits of contract management for Sales contracts.

AberdeenGroup research highlights the benefits of contract management for Sales contracts.

FineTooth is offering complimentary access to a just-completed research paper by the Aberdeen Group: The Contract Management Benchmark Report: Sales Contracts. This new report highlights the most common problems faced by companies in managing their sales contracts. One of the key findings in this survey is that companies only track 68% of their sales contracts. That means one third of a company’s customers are not being properly managed. 85% of companies surveyed report using manual methods to manage sales contracts. That results in a lack of awareness of negotiated terms thereby increasing the risk of noncompliance with contractual obligations leading to strained relationships and possible costly disputes. Those organizations utilizing effective contract management report key benefits:

> Best-in-class companies achieve renewal rates of 90% compared to an average of 60%

> Contract cycle times of 8 days verses an average of 25 days

Vishal Patel, the author of the report states "Our examination found that most companies continue to manage contracts with a mix of manual, paper-laden and informal processes; fragmented business systems; and ex post facto audits and analyses. This jumbled "strategy" limits visibility into corporate contracts and performance, exposing enterprises to high administrative and processing costs, diminished negotiation leverage, missed revenue opportunities, poor performance and regulatory backlash."

The report highlights the impact of poor sales contract management

> Increased financial & legal risk

> Unprofitable deals

> Long sales cycles

> Lost revenue

> Missed renewal opportunities

> Financial reporting violations

> Customer dissatisfaction

> Higher contract administrative costs

Companies can use this report to determine what next steps are necessary to help improve their contract management performance. The report includes specific recommendations for companies seeking to improve their sales contract performance.

The report is complimentary, courtesy of FineTooth, via the following link:

About FineTooth

FineTooth converts contracts into a performance-based management tool – instead of passive collection of documents sitting in a file cabinet. The OnDemand, role-based contract management solution provides all stakeholders with the tailored information needed to put agreements back under proactive control. FineTooth’s unique technology automates the task of identifying, organizing and managing your contract information resulting in higher realized value, minimized regulatory risk and higher total accrued value.

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Brandon Brown
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