Last weekend I scrambled to find a plumber and fix a water leak in my home. I was noticing a damp spot on my ceiling for a few days which kept growing bigger each day. Upstairs, I tried to find the source of the water leak, but it was hard since there was no visible sign of any water leaking out. But knowing that the water spot is growing, and there is definitely some slow leak somewhere in my upstairs water lines, I had to do something fast or else we all know the effects of water and damp areas in-between floors or walls. Mold, mildew, stains, and lots of other issues could end up costing a lot more money down the line if the problem is ignored.
This week I was working with a customer on their contract management challenges. They have no visibility into their contractual obligations. The signed contracts are filed away and forgotten in massive storage files. Isn’t it ironic that at home we will immediately fix a leak to prevent hundreds of dollars in potential damages. But at work, we tend to ignore contractual obligations that could be causing revenue leaks, causing the company potentially hundreds of thousands to millions of dollars in lost revenue or penalties, thereby significantly affecting our bottom line. Why don’t we fix the “leaky faucets” in the corporate world proactively and prevent the revenue leak? Why do we wait until something bad happens, and then reactively try to find a patch solution?
Contracts are pipelines within the organizations. They contain the essential business terms with external parties, allowing your business to flow. If not managed properly, you could be potentially losing a tremendous amount of revenue in lost sales, missed upsell opportunities, missed renewals or failure to enforce price adjustments, not to mention the risk of missing obligations, failure to deliver on commitments and other compliance aspects that could result in legal issues and penalties. Malbek's contract management solution ensures that you put the proper plumbing in place for your corporate contracts and avoid such leaks in your contracting flow.
If you think a signature on the contract is the end of the contracting process, think again. It's just the beginning.