Contracts represent an important part of the business to business relationship between vendors and customers. Data must be easily accessible at a moment’s notice, and advancements in technology have made this a real possibility.
The major challenges involve disconnects in between the various processes on the selling side of the quote to cash cycle. Order management, invoicing, proposal creation, pricing structures, negotiating with customers, and sales order creation are becoming more complex as the demands for accurate and accessible information at every stage of the cycle increase.
Rising sales volumes and complicated pricing models create additional layers of stress in an already difficult process. Revenue leakage at every stage of the quote to cash process are common, and can be hard to diagnose and solve.
It’s important to pay attention to standardization of the language in the documents used in the quote to cash process. There is great financial and even legal risk in not controlling the language in contracts or issuing contracts with unapproved conditions or terms.
Contract problems slow the sales process
Reducing the sales cycle is a prime objective in companies that rely on the performance of their sales departments for the overall health and well-being of the organization. A large part of the sales cycle depends on the efficiency of the contract creation and approval process. Reducing the entire cycle by even one day may represent a huge financial boost for a company. Extending it means lost revenue over time and perhaps even lost clients.
Revenues may also be lost to other problems in the sales cycle, including accounting errors in the proposal, sales contract or invoice, missed deadlines, and regulatory penalties.
Better contract management leads to improved performance and financial results
Companies that attempt to solve challenges in the quote to cash process find that better contract management saves them money and shortens their average sales cycle.
A reliable contract-management system can significantly reduce invoicing delays and errors. Integrating the contract management system with transactional systems and automating the quote to cash system further reduces the chance for mistakes and delays.
Having the right people in place to execute a contract management system is crucial for your company’s financial health. To learn more about how Wahoo Recruitment helps sales-driven companies find the best possible candidates, please contact us.