The contract execution process seems fairly straight-forward. As it is the last stage of the contract management process, many businesses fall into the pitfall of not actively monitoring it. But there is plenty that could go wrong.
For all companies, it is crucial to learn how to monitor the execution of your contracts, and in this article, we want to explain to you why it is important.
Staying on top of implementing the terms of a contract is usually far more important for its success.
You stand to gain a lot from an excellent contract execution monitoring strategy. Not only will your post-execution be well managed, but your organization will also have access to vital information and insights. These can enhance your company’s decision-making process.
Benefits of monitoring the execution of your contracts
When you start looking into monitoring contracts execution and why it is important, you will notice the following benefits:
- Greater contract visibility so that decision-makers can have access to relevant information as at when due.
- Lower risk of making wrong decisions.
- Effective collaboration among stakeholders by providing a standard management process as well as relevant clauses, terms, and conditions of contracts.
- Fewer misunderstandings by keeping everybody updated on current issues.
- A seamless post-execution contract handoff, especially when hosted on a cloud-based system.
- Regular updates and notices for key stakeholders on specific important details and actions such as expiry and renewal dates, thus reducing the likelihood of missed deadlines.
Monitoring contract execution reveals critical information about your organization’s contracts such as risk assessment of individual and contract portfolios, strategies for adding value, tracking contract performance, and other insights which promote excellent contract management post-execution.
The future of contract execution monitoring
Automation is the future of contract execution monitoring. Organizations will reap many benefits from adopting solutions that track contract financial performance— such platforms can alert for each step of the contract’s execution. Contract management platforms can flag all non-compliant actions, supply necessary legal documentation, safeguard against missed deadlines, and provide evidence of responsible accountability.
Automated solutions offer more insights into the status of each contractual relationship. Organizations can use them to build management reports that will provide the necessary information to evaluate terms such as warranties, pricing, quality guarantees, service levels, and return policy. Contract management platforms provide ideal support for this evaluation effort by providing automated data generation and reports on all aspects of a contract’s financial impact – whether positive or negative.
Improving contracts execution monitoring with Trakti
Contract management platforms like Trakti’s enable organizations to more easily and effectively manage the contracting process, from creation through negotiation to completion. Since contract management doesn’t end when parties sign a contract, organizations can ensure that they take advantage of all revenue opportunities. This is a new way to remain in control of the most crucial phase of contract management– monitoring contract execution and the evaluation of the contract’s performance.
With a complete contract management solution like Trakti, you can improve and facilitate post-execution management.
Trakti end-to-end contract automation supports your team from the beginning to the end of the process, saving time and reducing errors. Simplifying your workflow with contract automation is a great way to free up the time of your team and reduce the average turnaround time by 80%.