Contract Management: Basis for commercial and legal actions

Contracts are the starting point and the basis for commercial and legal actions in organizations and company departments. Internal and decentralized decision-making levels require the option of direct access to all of the company's information with the disclosure of any risks.

How contract management sustainably secures your compliance

If your contract management is ideally positioned for the future, it along your compliance requirements can develop optimally with your potential and sustainably secure your business success. With a contract management software such as LCM Contract Management LCM you benefit of one of the leading solutions. Web-based and with future-oriented technology, this contract management software is easy to use.

The legal framework for contract management

Handling, management and evaluation of contracts are part of everyday work in many departments, and there also contribute to the risk potential resulting from contracts. Generally the following departments have decentralized involvement with contracts: Legal, investment management, marketing, sales, purchasing, finance, controlling, revision and information technology. Distributed knowledge and decentralized responsibilities represent significant risks to the company.

Why contract management?

The study "Contract Management 2010" conducted by Bearing Point GmbH found that contract management is a complex company task that can pose significant risks to companies. This study concluded that the most significant risks and optimization potential center around providing access to current contracts and information on the contracts. Frequent difficulties in finding contracts, content risks, loss of contracts and missed deadlines are seen as significant risks.

Many companies are incapable of generating a satisfactory overview of their internal and external contract relationships by key press at a workstation to realistically assess risks related to contracts. Annual report and financial auditors are faced with this challenge in practice and have been appealing for a remedy.

Legal regulations such as the Sarbanes-Oxley, European Governance and Basel II, for example, make reference to an online risk early warning system for the disclosure of contractual obligations and for risk assessment. 

To successfully overcome these challenges in conformity with the law, it requires specific solution approaches with the goal of identifying and effectively controlling risks, optimizing processes, and realizing increases in efficiency and the necessary document integrity within the context of compliance management.

Our Contract Management Solution: smartLCM Contract Management

Inter-corporate and decentralized decision-making levels require direct access to global information of the corporation while exposing any risks. With smartLCM Contract Management you will have a tool that both automates the process of contract preparation, conclusion, administration, and also automates the associated area of risk management.

smartLCM Contract Management and the other modular applications of the TQG businessApp platform® have been developed – through intensive cooperation with users – into a knowledge database which specifically manages and analyzes structured and unstructured data for all organizational units in a company. This data, which is relevant both for incipient business (NDA, bid/proposal, inquiries, RFI, RFQ etc.) and also after contract signing (e.g. contract, exhibits or supplier information) is managed, actively monitored and controlled complementary to a transaction-oriented system (such as SAP, Navision etc.). The smartLCM applications ensure maximum compliance and audit standards.

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