Contracts hold key financial information of a company and can have a direct co-relation with the business health of an organization. For certain industries like Defence and Aerospace, contracts can hold up to 90% of all business transactions. It’s no surprise then that senior management watches contracts closely and expects constant updates about their performance. Now imagine having to share status reports with executives about contract renewals, contract revenue generation, risk factors, contract expiries etc. on a regular basis. Without a robust reporting system, it would mean digging into large excel sheets, drilling for keywords, and consolidating information from across multiple contracts! This would not be time-consuming alone but also labor intensive and prone to some omissions and manual errors.
Even if your contract repository collects and stores all key contract data, it’s not of much use without a comprehensive reporting system to back it up. Advanced contract management systems come equipped with robust, user-friendly and customizable reports all accessible through a click of a button. Users have the option to generate reports across multiple parameters. These reports can give insights into contract progress, any challenges, losses, financial status etc. in a graphical representation for quick interpretation and action-taking.
Let’s look at how customizable reports can help an organization operate more efficiently:
1. Department wise report generation
With the customizable reporting option, all departments can extract reports that are most important to their teams and their work. For e.g. a Sales operations executive might pull out a report around all contracts expiring in the next 3 months while a legal official might want a report showcasing all unfulfilled obligations across certain contracts or risk percentage for certain others.
2. Quick and accurate data and statistics
With the power of AI driven analytics, reporting has become far more sophisticated than before. Analyzing contracts and extracting key data from them including expiries, renewals, obligations, payment terms etc. can be done by merely entering the title of the report you are seeking and accessing these accurate auto-generated reports within no time. With such easy access to reports, there are better chances of this data actually getting used. Often, with no easy way of data representation, despite having all statistics, these are never shared with management or utilized.
3. Informed decision making
A comprehensive, user-friendly reporting system gives you the power of real-time data right at your fingertips. This data can be leveraged to identify patterns, avert certain risks, or rectify the contract path wherever it’s not performing well. It can help senior leadership make strategic organizational decisions and predict outcomes based on past patterns. This helps in smarter business deals, lesser risk and better negotiating power.
4. Fast remediation of inconsistencies
Without a comprehensive dashboard and reporting system, organizations can often lose out on gaining the maximum value from their contracts. Often, there is no quick way to find out if contracts have missed any milestones, if there are any delayed payments or any inconsistencies. While dashboards can give you a glimpse of all upcoming deadlines, missed compliance etc., reports can give a more detailed view of all key data on the go. When this data is at your fingertips any problems, inconsistencies, or non-compliance can be quickly resolved. This can help companies avert risk and liabilities and keep all contracts on track.
5. Creating a Center of Excellence
For any organization to excel and break into a new league, there has to be an ingrained culture of excellence. This can only be achieved when there are robust processes in place and complete cross-departmental transparency and harmony. With contracts, various departments need to work together, make decisions, review, negotiate and approve contracts that fall under their domain. An integrated, next-gen CLM system with user-friendly reporting ensures all departments have access to all key contract information and can collaborate effectively through the platform to ensure quick turn-around, uninterrupted communication and co-operation. Reports also ensure there is data sharing amongst teams and management, better vendor-customer relationships are maintained, and decisions are made basis accurate data and statistics.
The above points highlight how reports form an integral part of a sophisticated contract management solution and are critical to harnessing all that key contract data. It is time to simplify report generation and representation, save time and effort and utilize all contract data with ease by implementing a robust contract management solution inbuilt with customizable and comprehensive reporting capability.