Trends of using Contract Management Solution in Pharmaceutical and Chemical Industry

          Pharmaceutical companies are particularly challenged with ever-increasing compliance requirements and hence operational costs. The complex and unprecedented challenge of monitoring contractual compliances and obligation with risk of tracking deadlines has increased external pressure on these organizations to heighten transparency and adopt innovative technologies, this driving pharmaceutical companies to re-examine their approach for better contract management solutions.

          Contracts define every single dollar coming into business or going out of business and describe where, what, with whom and on which terms we are doing business. If contracts are mismanaged then it can become one of your biggest liabilities, Failure to provide compliance or an audit trail can expensive financially and in terms of reputation of your organisation. Further, inaccessible data, missed deadlines, and untracked or unauthorized changes are just a few more things that can go wrong if you do not have a strong contract management process in place.

Some key facts,

Good Contract Development and Management could improve profitability by the equivalent of massive 9% of annual revenue.

              - International Association for Contract & Commercial Management (IACCM)

60 % of the companies surveyed report that they lose 10 % or more of the contracts value because of poor governance between the customer and the provider.

              - International Association of Outsourcing Professionals (IAOP)

A survey of outsourcing suppliers found that without close contract governance, businesses stand to lose up to 40% of a contracts value.

              - A KPMG Survey

Administrative costs associated with contracts are reduced by 25%-30% through implementing automation.

              - Aberdeen Research

Transforming contract management process:

          The high complexity of compliances and regulation in pharma industry reflects the same level of complexity into pharma industry contracts. Managing thousands of contracts, including clinical trial agreements, sourcing agreements, R&D agreements, consulting agreements, funding agreements, confidential disclosure agreements, and more -introduce the high risk if we are not using new generation technology. Transformation of contract management process brings the visibility, accessibility, automation, and centralization necessary to integrate operations and contract strategy.

With legal team contract management software also helps other department in your organisation,

          - Enables your sales team to close the deal faster and identify new revenue opportunity.

          - Enables finance team to monitor payment terms in contract and get paid on time.

          - Enables procurement team to track performance of sourcing agreements and identify new

            cost saving opportunities.

How Enterprise Contract Management Can Help ?

          Through central contract repositories, automated workflows, and the tracking of obligations and spend, enterprise contract management systems can help pharmaceutical companies proactively address these challenges. Here are a few benefits companies can expect from contract management application,

With legal team contract management software also helps other department in your organisation,

          1. Automate the contract lifecycle from drafting the contract to get it reviewed, approved

              and signed, reduce the cycle time from weeks to just few days.

          2. Monitor the contracts for obligations, payments, expiries and renewals with timely

              reminder and email notification.

          3. Maintain a centralised contract repository so you dont need to waste your time to find

              contracts or related documents.

          4. Track versions and amendments of contract made during negotiation.

          5. Enforce contract reviews and approvals process and notifies with contract current status.

          6. With automation and contract management at the core of the sourcing process,

              procurement teams can reach agreements with suppliers faster, negotiate more

              effectively, accurately track supplier compliance, and maximize savings.

          7. By improving trial onboarding, sourcing, and contracting processes, sponsors will drive

              better collaboration across parties, reduce delays and adhere to milestones, and inch

              closer to commercializing their R&D efforts.