Agreed

Contract Lifecycle Management

Contract Maturity Stages

Research points at three applicable stages of maturity for Contract Lifecycle Management. By reaching the 3:rd level your organization will save approx. 30%

By reaching the 3rd level you will save 30%

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    1st Level
    Inhibited Layer

    No or very limited governance or joint processes, standards or tools are in place. Sourcing, contract and vendor/supplier management is often conducted as one off activities with limited focus on long term corporate value and corporate volume effects and efficiencies. By implementing a CLM tool the company reaches the 2nd level.

    2nd Level
    Enabling Layer

    If adding a stringent use of T&C for the company, and simplifies free text searches in the CLM tool or the file share, the company is getting to the 3rd level of maturity, called the Optimized stage.

    3rd Level
    Optimized Layer

    No or very limited governance or joint processes, standards or tools are in place. Sourcing, contract and vendor/supplier management is often conducted as one off activities with limited focus on long term corporate value and corporate volume effects and efficiencies. By implementing a CLM tool the company reaches the 2nd level.

    Most Interesting

    At Opticos we see this as the the most interesting layer for sourcing of complex Services such as IT services and similar. The top 2 levels, being Best in class and world class, better fits direct material, components or in some cases resources. For instance, there are some brokers such as Zero Chaos and eWork that can be used to reach the higher two stages in maturity for some commodities.

    Our Experience

    Our experience is that a large portion of mid sized to large corporation is as the first or second (being the Inhibiting layer or perhaps in the Enabling layer).

    Best in Class

    Opticos Agreed™ contract portfolio system offers a best in class cloud based solution for Contract lifecycle management. Please contact us for more information.