Why Contract Management

The significance of proper contract management cannot be overstated, as it directly impacts key aspects of business operations and governance.

• Financial Implications: Inefficient contract management practices can result in significant financial losses for organizations. Studies have shown that an average of 9.2% of annual revenue is lost due to contract mismanagement.

  • Larger companies face even higher percentages, with potential losses reaching up to 15%. Additionally, organizations can save up to 2% of their annual costs by implementing effective contract management practices, highlighting the financial stakes involved.

• Operational Challenges: The volume and complexity of contracts present formidable challenges for businesses.

  • Many organizations struggle to locate a significant portion of their contracts, leading to penalties, missed renewals, and governance issues.

  • Manual contract management processes further exacerbate these challenges, consuming valuable time and resources. However, the adoption of automated contract management solutions has shown promising results in streamlining processes and reducing inaccuracies.

• Emerging Technologies: Emerging technologies like blockchain offer transformative solutions to traditional contract management challenges.

  • Platforms such as BLOCKTRACTS leverage blockchain technology to provide unparalleled transparency, security, and immutability in contract storage.

  • By securely storing contracts on the blockchain, businesses can streamline the entire contract lifecycle while ensuring trust and integrity through decentralized governance.