Such are the challenges of sales contract management, on which the Aberdeen Group recently had this to say:
- Sales contracts are highly labor-intensive, requiring frequent drafting, review, negotiations and approval.
- It's difficult to ensure that standard language and pricing structures are followed, and to keep track of clauses used, especially if sales teams have a hand in the drafting.
- Enforcing terms and clauses pre-approved by legal can significantly reduce risk, but is hard to do when a company is using only partially automated processes.
- Best in class companies that do automate the process can lower their contract cycle times to the point where they are three times faster at closing deals than their competitors.
- 46% of companies see the enforcement of standard contract terms as a top strategic action for contract management.
- Companies are looking primarily toward the on demand, hosted model, which is lower-cost, more user-friendly and works well for sales teams scattered across different regions.
For more details, get yourself a copy of The Contract Management Benchmark Report: Sales Contracts, April 2006.