contracting contract kpmg pandemic [shutterstock: 1898050576, Noiz Stocker]
[shutterstock: 1898050576, Noiz Stocker]
Management Press Release

Pandemic Highlights Broken Contract Processes

In collaboration with KPMG, World Commerce & Contracting (WorldCC) surveyed executives from across the globe, gathering insights into the process of contracting across industries and how to fix perennial and costly problems in the contract development process.

The COVID-19 pandemic has highlighted a significant problem with contracts, as revealed by a report released by World Commerce & Contracting (WorldCC) and KPMG Law entitled “Can the contracting process improve without an owner?”

For decades, organizations have tried to simplify the contract process, testing and implementing contract management tools and systems, but to little effect. Now, as digitalization accelerates, streamlining the contract process is a major priority. As the report makes clear, this issue is not isolated to one business or industry type. It is a global problem that is slowing organizations down.

Only 10.8 percent of organizations consider their end-to-end contracting process to be very effective. As one research respondent commented, “Getting a contract is like having a root canal.” Cost was also an area of contention among respondents, with the least efficient processes reportedly averaging more than US$10,000 per contract, simply for reviewing and processing activities.

ad_banner

Digitalization of the contracting process is now a priority for 76 percent of respondents, yet only 26 percent of respondents believe that their technology team is well equipped to support their digitalization initiative. Digitalization alone cannot fix the broader issues.

What’s the solution?

The report concludes that sustained progress and improving the quality of the contracting process depend on achieving a single point of process ownership and accountability. WorldCC and KPMG Law say that introducing an Office of Contracting within each organization is the solution to tackling a fragmented and costly process. The OOC would be a small group responsible for all contracts across the enterprise and the process surrounding it. They would work in harmony with all involved parties, coordinating and coalescing.

About the author

E-3 Magazine

Articles published through E-3 Magazine International. This includes press releases by our partners as well as articles and reports from the E-3 team of journalists.

Add Comment

Click here to post a comment

Social Media

ad_banner
Sign up for e3zine´s biweekly newsbites

Please do not use administrative mail adresses like "[email protected]", "[email protected]" or similar as these may get blocked for security reasons.

We use rapidmail for dispatching our newsletter. By signing up, you agree that the data you have entered will be transmitted to rapidmail. Please take note of their terms and conditions and privacy policy. terms and conditions .


After submitting your contact details you will receive an email containing our media kit.

Please select an optionMr.Mrs.
Our Authors