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The International Association for Contract & Commercial Management (IACCM), a not for profit organisation, has released a fascinating benchmark report based on information gleaned from over 700 organisations. The full details are available from www.iaccm.com and for us the most important findings are:
- A centralised (not necessarily geographically centralised) contract management function saves time and money. A non centralised function uses on average 35% more staff.
- The most efficient contract managers handle nearly 70% more contracts than the least efficient.
- Buy-side contract management reduces the proportion of poorly performing contracts by almost 50%
- Organisations with contract management software operate with greater speed and can handle higher volumes of contracts per head.
- It is very difficult for organisations to undertake significant analytics and drive improvement if they haven’t deployed software.
- Contract management software does not necessarily result in reduced headcount within the contract management function but does mean that more time can be spent on strategic areas.
We would recommend that anyone with an interest in improving organisational performance reads the full report.