Contract Management

Opportunities and challenges in contract management

$

US dollars to prepare and manage an average standard contract.

Source: Contract Lifecycle Management 2021

person-days to manage the data extraction and analysis for 100,000 contracts of a corporation.

Source: Contract Analytics 2019

of companies in Germany have no digitized paper files.

Source: Contract Analytics 2019

Objectives of contract lifecycle management

1

Efficiency gains in preparing and managing contracts

2

Complete transparency of all contract information

3

Control and security over contracts concluded in the company

Source: KPMG.de

Our holistic advisory approach

Our advisory services start with an intake and assessment of the contract management maturity level in your company and the evaluation of risks and optimization potentials. Based on this analysis, we jointly develop company-specific short-term as well as medium- to long-term recommendations for action. Depending on your needs and requirements, we will support you with planning contract management governance and efficient processes throughout the entire contract life cycle. We will document the jointly developed company-wide CLM governance, including a clearly defined role concept, in manuals, guidelines or recommended actions tailored to your needs. We will make your existing contracts accessible and transparent by taking an inventory and analyzing the contract landscape and evaluating relevant contract information.

Based on our extensive experience with all leading system suppliers, we will find the right contract management system solution for you – starting with a definition of your specific requirements, compiling these in specifications, and ultimately selecting a specific supplier.

After selecting a system solution, we will support you with the implementation and integration of CM governance and the system solution in your company. You will receive support particularly with migrating the contract portfolio and existing contract templates. This includes updating the contract templates and creating a library of clauses as well as definition of the associated metadata and access and approval authorizations for each clause.

Use case: The holistic advisory approach using the example of procurement

We provide holistic support for the (individual) design, introduction and optimization of a contract lifecycle management system along the entire contract lifecycle from a process, organizational, legal and technological perspective. With our dedicated KPMG contract management approach, we not only support you in selecting the appropriate system, but also in defining requirements and designing the necessary processes and structures in advance. In exchange with the selected system provider, we ensure the smooth implementation of the system solution and operationalization of processes.

In this way, we help minimize costs and risks in procurement while increasing efficiency, effectiveness, quality and transparency:

Gain more control over the contracts concluded in the company
Manage contract enquiries better and start contract negotiations in a stronger position
Improve the efficiency of preparing and managing contracts
Make the contract landscape fully transparent

Is the introduction of contract lifecycle management cost-effective for your organization?

The KPMG experts will be available to you for a one-hour analysis of optimization potential free of charge and without obligation. Take advantage of this opportunity and make an appointment.

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Further use cases

We would be happy to help you implement a sophisticated software solution to securely manage your organization's contract management. We work closely with our alliance partners to help you achieve the best possible solution. Contact us if you are interested in learning more about the various providers. Our experts at KPMG will contact you for a demonstration and discuss possible next steps.