{"id":15115,"date":"2024-08-08T05:16:56","date_gmt":"2024-08-08T04:16:56","guid":{"rendered":"https:\/\/sharecontrol.io\/?p=15115"},"modified":"2025-02-25T10:05:50","modified_gmt":"2025-02-25T09:05:50","slug":"effective-contract-management-in-2024","status":"publish","type":"post","link":"https:\/\/sharecontrol.io\/en\/contract-management\/effective-contract-management-in-2024\/","title":{"rendered":"Effective Contract Management in 2024"},"content":{"rendered":"\n

In an increasingly dynamic and competitive business environment, effective contract management is critical to business success and sustainability. Contracts form the backbone of business relationships, regulating rights and obligations, and ensuring compliance with legal and regulatory requirements. In 2024, the importance of contract management will continue to increase, driven by several key factors. <\/strong><\/p>\n\n

\n

Organizations can save 2% of annual costs due to contract management.<\/p>\n\n\n\n

– Procurement Tactics, 2024<\/a><\/p>\n<\/blockquote>\n

Why is effective Contract Management important in 2024?<\/h2>\n

Effective contract management is becoming increasingly important as the complexity of business agreements grows. With global markets, complex supply chains and multiple stakeholders, contracts are becoming more comprehensive and detailed. This requires systematic management to avoid errors, misunderstandings and legal conflicts. Effective contract management ensures that all parties are clear about their rights and obligations, minimizing the risk of disputes. <\/p>\n\n

Secondly, technological advances bring new opportunities and challenges in contract management. Tools such as ShareControl Contract<\/a>, built on Microsoft 365 and SharePoint, enable the automation and improvement of many aspects of contract management. This includes everything from storing and organizing contracts to automated alerts and analytics with Power BI. Such technologies not only improve efficiency, but also ensure that businesses comply with applicable regulations and best practices. <\/p>\n\n

\"\"<\/figure><\/div>\n\n
<\/div>\n

What is Contract Management?<\/h2>\n

Contract administration or follow-up of contracts concluded with customers, suppliers, partners or employees. In contract management<\/strong><\/a>, the process of managing contract creation, execution and analysis to maximize operational and financial performance within an organization, all while reducing financial risk.<\/p>\n\n

<\/div>\n

Challenges with Contract Management <\/h2>\n

Contract management is a complex process that can present several challenges, and these challenges can affect companies’ efficiency and success. <\/p>\n\n

Read also<\/strong>: How technology improves contract management in your business<\/a><\/span><\/p>\n

Lack of overview of contracts<\/h3>\n

One of the biggest challenges with contract management is the lack of overview and organization of contracts. When contracts are stored in different places and in different formats, it becomes difficult to find the necessary information quickly. This can lead to lost contracts and misunderstandings. With ShareControl Contract, you can systematically store and manage all contracts in one place, ensuring easy access and overview for all relevant parties in Microsoft 365. <\/p>\n\n

<\/div>\n\n
\"ShareControl<\/figure><\/div>\n\n
<\/div>\n

Important contract deadlines<\/h3>\n

Keeping track of all contracts, important deadlines and obligations can be challenging, especially when a company handles many contracts simultaneously. Missed deadlines can result in financial losses and legal issues. To prevent contracts from being forgotten, Share Control’s contract solution has integrated alerts and reminders with Power Automate<\/a>. Set up alerts via email or other messaging systems so you’re always aware of upcoming deadlines and obligations. <\/p>\n\n

Explore more<\/strong>: What are the total costs and liabilities of your contracts?<\/a><\/p>\n\n

In ShareControl Contract, the first notification is sent to the person responsible for the contract. Should the notification not be followed up, a new notification is sent to the next person on the list. This ensures that you never lose contract renewals, even with employees who have left. <\/p>\n

Non-compliance with regulations <\/h3>\n

Compliance with legal and regulatory requirements is critical when managing contracts. Failure to comply can lead to legal sanctions and damage the company’s reputation. In Norway and the EU, recent years have seen more legal requirements that place higher demands on control over data storage from suppliers, such as the Transparency Act<\/a> and GDPR. A contract management system can therefore help to prevent breaches by constantly maintaining control of signed contracts and applicable guidelines. <\/p>\n\n

Looking for solutions for the Transparency Act? Share Control has developed ShareControl Transparency<\/a>, which helps you gather all data related to the Transparency Act from your suppliers in one place. <\/em><\/strong><\/p>\n\n

<\/div>\n

Best practices for Contract Management in 2024 <\/h2>\n

Effective and secure contract management is essential for any business. Here are some best practices and tips to ensure your contract management is optimized for success in 2024. <\/p>\n

Reporting in Contract Management <\/h3>\n

Accurate and timely reporting is essential to keep track of contracts and ensure that all obligations are met. Here are some tips to improve your reporting: <\/p>\n

\n
\n
\n

Centralized handling<\/strong><\/p>\n\n\n

Use a central system such as ShareControl Contract to store and manage all contracts in one place. This provides a clear overview of all active and expired contracts, simplifying reporting. <\/p>\n\n<\/div><\/div>\n\n

\n

Customized reports<\/strong><\/p>\n\n\n

Use tools such as Microsoft Power BI to create customized reports that provide insight into contract data. This can include financial performance, key deadlines and contract renewals. <\/p>\n\n<\/div><\/div>\n\n

\n

Automated reports<\/strong><\/p>\n\n\n

Set up automatic reporting features that generate and distribute reports regularly to relevant stakeholders. This ensures that everyone has access to up-to-date information without manual effort. <\/p>\n\n<\/div><\/div>\n<\/div>\n<\/div>

Financial reporting <\/h3>\n

Financial reporting is a critical component of contract management, providing businesses with insight into their financial status and future obligations. To enhance this process with ShareControl Contract, Excel VBA can be integrated, providing more accurate and detailed financial forecasts. By combining Excel VBA with ShareControl Contract, businesses can benefit from the strengths of both systems. <\/p>\n\n

This is how it works:<\/strong> <\/p>\n\n