The costs of poor control

by House of Control | Sep 14, 2020 10:50:29 PM

Are you thinking about getting a digital tool for contract management, centralised control of your assets, administering your customer and supplier contracts or similar purposes? Regardless of your answer, it’s worth considering the many benefits of using such tools.

 

A good way to look at things is to evaluate the potential consequences for your organisation of continuing without centralised and uniform control over your contracts, assets and other commitments. Let’s call this the cost of poor control.

Below are ten ways poor control can result in increased costs, either directly or indirectly:

• Duplication of deliveries
• Unwanted automatic renewal of contracts
• Failure to renegotiate contracts
• Non-collection of fines and compensation for defective deliveries
• Purchasing assets you already have
• Unwieldy management of rules for finance leases and IFRS 16
• Extra time spent identifying items for next year’s budget
• Less time to focus on strategic initiatives
• Unnecessarily complicated accounting procedures
• Forgetting to adjust prices for your customers

The simplest way to reduce all these costs is to use an effective tool for contract management. Many people call this contract lifecycle management. We call it commercial value management, since our solutions help you to manage a much wider range of commercial values than just contracts. Complete Control is the name of a platform of solutions that help with more than just the challenges above: Complete Control gives CFOs a brand-new arsenal of tools to reinforce their company’s control and profitability.

Needlessly wasting money means fewer funds for growth, strategic initiatives and dividends – and less resilience when times get tough. Owners, directors and CEOs rarely appreciate seeing the bottom line being frittered away on unnecessary costs. They expect the CFO to be in control and for the company to be lean.

Contact us to talk about cutting out unnecessary costs today!

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