|No contract is an island: Why
integration is key
This is the first post in our Integrated Contracts series and a guest post from Revitas’s Brock Coughlin.
English poet John Donne once wrote, “no man is an island.” He might have made a great enterprise software consultant -- after all, no contract should be an island either. And yet at Revitas, we routinely encounter issues that information silos and process disconnects create for organizations of all sizes, specifically with regard to contract management.
One of the most overlooked areas of “dis-integration” for companies in complex distribution channels is the chasm that exists between contract and revenue management. Many organizations engage in complex contract and revenue management processes that are manually intensive and limited in scope, which can cause gaps in coverage, such as significant manual data interaction requirements, limited lifecycle visibility, and incomplete audit capability.
The lack of integration leaves companies at risk for errors, which can creep in through misinterpretation or simple data entry mistakes. To top it off, storing agreements in isolation makes it nearly impossible to ensure accurate incentive payments, creating the potential for margin erosion and leaving a host of nagging questions:
- Are terms paid correctly?
- Are payments on time, every time?
- Are payments accurate? Have we overpaid or underpaid?
- Are both parties compliant?
- Are there auto-renewal clauses?
The biggest question of all though is whether your contract is really working. Without visibility into contract performance, it’s impossible to course correct. You can’t fix or duplicate what you can’t measure, which is the kiss of death from a strategic standpoint.
Do you know the current state of your company’s contract and revenue management processes? Are you aware of the gaps and potential dangers? If not, take a look at the e-book we published outlining the critical nature of integrated contracting.