Your company handles hundreds – even thousands – of long-term contracts. These contracts are a valuable asset because they guarantee ongoing turnover. Nevertheless, contract management is very labour-intensive. In particular, this can require a great deal of manpower to draw up complicated contracts based on the final quote. This must be done very accurately because nothing should be missed. They must be checked thoroughly. All your contracts are recorded in your system as principal documents and appendices – all Word, PDF, and Excel documents. Time-use surveys in the Sales department reveal that the number of hours spent on reading contracts can mount almost unnoticed if anyone in the company or the customer has any questions. Some contracts are also complicated and inexperienced sales staff might struggle to deal with them and are therefore excused from working with these contracts. The amount of time involved is unfortunate, but you still prefer long-term contracts to non-recurrent orders.
In Sofon, the contract is based on the details and agreements from the approved final quotes. That information is taken from the final quote and automatically recorded in the system as the contract details. A contract is, therefore, never a document that must be read first before its contents become clear. You can view all of its elements immediately. It’s easy to distil details from one, several, or all your contracts and act accordingly or analyze them.
Your Finance employees can select the payment instalments from all the contracts, for example, to determine which customers still owe payment and automatically follow up on all the payment milestones.
In the same way, your Support department can view all of the maintenance and service agreements in the contracts. When customers call, they will have all the relevant details at their fingertups. They won’t lose time reviewing the contract – “What were the arrangements again?” – leaving the customers waiting. They can always respond quickly and reliably (Customer support).
As an addition to your contract creation, you can improve other aspects of quoting and contracting by introducing smart processes: quote creation, quote management, cost of goods sold, sales negotiation management, discount/rebate management, contract management, authorization and approval, revision and version management and revenue recognition.