Psst! Want to Know the Secret About Contract Analytics?
By Marc Fuentes | July 6, 2021
Psst! Want to Know the Secret About Contract Analytics?
What if I told you Contract Analytics has the potential to save Fortune 1000 enterprises millions of dollars? According to McKinsey, nine percent of annual enterprise revenue is lost due to poor contract management, performance, obligations, and suboptimal contract terms. Take an enterprise with two billion dollars in revenue...well, you can do the math. But don’t take my word for it try the Contract Analytics Risk Calculator and find out where you stand.
No one wants to think that this is happening within their organization. Surely your legal agreements aren’t in such a state of disarray. But are you certain? Do you know where all your contracts, agreements and documents reside? What about the cost, risk, and opportunity they represent? The answer to these questions can and should keep C-suite leaders awake at night or sleeping like a baby.
Let me put this into context:
A typical Fortune 1000 enterprise manages anywhere between 20,000 to 40,000 active contracts at any given time and negotiates and executes another 1,000 new ones annually.1 On top of the cost associated with manual contract review, there’s also costs to draft, negotiate, review, and sign contracts, which varies depending on complexity.
Simple contracts cost on average $6,900 to execute, middle-of-the-road ones run about $21,300, and highly complex contracts cost companies nearly $50,000.2
Contracts are either a business driver or an expensive, risky, time-consuming document. To avoid the latter scenario, enterprises must make every effort to understand where their contracts reside, mitigate risk, and leverage value. Read on to learn how.
At this point, you may be questioning whether your contracts are meeting their full potential. But, finding answers may seem daunting. Don’t worry, we have done the heavy lifting for you. Our Contracts Analytics Risk Calculator will crunch the numbers to reveal just how well your contracts are working for you. Or not.
What Will the Risk Calculator Tell You?
The Contract Analytics calculus is simple: being able to quickly find and analyze contracts boosts revenue and reduces risk; manual contract review is time-consuming, expensive, and incomplete. Our risk calculator was designed to shed light on how much enterprises can save utilizing a Contract Analytics platform.
Here is how Adlib’s Contract Analytics Risk Calculator works:
Participants are asked a series of 9 questions about their company, their contracts, and how much time and money they spend analyzing these agreements. The responses are calculated, and results are generated at low, medium, and high estimates. Leaders will find out immediately how much the lack of advanced Contract Analytics is estimated to be costing them.
Once the calculation is complete, participants have the option to share a link of the questions, answers, and results with their colleagues. Try it now! Act now! Share the Risk Calculator later with colleagues and friends!
At least 10 percent of contracts at typical Fortune 1000 companies are misplaced, difficult to find, still in paper form, or on a fileshare somewhere, buried in an email attachment, or otherwise forgotten.
A robust Contract Analytics solution enables leaders across industries to reduce risk, boost profits, and drive innovation. With robust Contract Analytics technology:
- Banking leaders can identify and remediate every LIBOR reference to meet compliance ahead of schedule.
- Risk and finance teams can create customized models to pool contracts—even long-dated ones—and extract essential data to ensure compliance on all contracts impacted by IFRS-17.
- Procurement officers can evaluate their entire supply chain to quickly find contract terms, reference performance obligations, and respond with agility to unexpected disruptions.
- Legal teams performing pre- and post-acquisition due diligence can quickly locate complex documents within data stores, remove redundancies, classify data to meet compliance mandates, and onboard the newly acquired assets with little to no risk.
Get the Full Picture with Adlib
Manual contract review is time-consuming, expensive, and incomplete, and being able to quickly find and analyze contracts boosts revenue and reduces risk. Adib’s Contract Analytics Risk Calculator was designed to shed light on how much your company can save by utilizing a Contract Analytics platform.
If an enterprise that nets 9 billion dollars in annual revenue adopts a Contract Analytics solution, they could save millions of dollars a year. See How Much Your Company Can Save
The Final Verdict
If you have been looking for a quantifiable business case before investing in a Contract Analytics solution, here it is. Now that you know the business cost associated with siloed contracts and time-consuming manual contract review, it is time to make your agreements work for you. Try Adlib’s Contract Analytics Risk Calculator to see the results for yourself.
Sources & Credits
2International Association for Contract and Commercial Management Studies
About the Author
Marc is the Senior Director of Growth Marketing at Adlib. For 20+ years, Marc has been leading marketing and sales teams within service, software, and SaaS. During his career, he has delivered over $30M+ in revenue and launched 65+ products for some of North America’s leading brands. In his off time, Marc enjoys staying active and spending time with his wife and three kids.