Post by account_disabled on Mar 11, 2024 0:30:08 GMT -5
Manual how does loss of value occur in contracts? When identifying these value losses, human errors, communication failures and the poor capacity of erp systems to detect these situations can be considered some of the main causes. In practice, this is seen in situations such as: double payment of invoices that, despite having control mechanisms, go unnoticed. Due to the lack of control or communication between business management systems, goods or services may not be invoiced, or may be partially invoiced. Lack of communication between the finance and purchasing areas. Non-existent validation between the prices stipulated by contract and those of the purchase orders. How does this loss of value manifest itself? Contracts establish rights and duties for both parties, which can go unnoticed if they are not managed correctly or if there is no clear work flow. Tips to counteract these losses of value companies with value leakage can implement programs to take care of these situations. These allow not only to detect, repair and recover these losses. Good specialized work can help prevent future losses.
For example: a critical eye that reviews all business processes. Specialized control processes parallel to existing audits. With these types of actions, lost costs can be recovered and substantial savings generated that can improve the value of the Germany Mobile Number List company. According to ernst and young, a 1% improvement in ebitda requires a 10% increase in revenue , so aspects such as compliance with contracts and clear communication between the parties can have an impact on the balance sheet. Final. Contract management: recovering lost costs and maximizing their value contracts decrease value leakage when: the contracts are clear and transparent. Performance can be evaluated objectively. There is a high level of control in their compliance. It is important to align the company according to common parameters in its regulations and service levels. This allows: specify the procedures. Optimize processes. Improve cost and revenue monitoring. Make business management transparent. To achieve this, it is key to improve the control of contract execution. Companies must study and review the structure of commercial contracts, so that they follow the best market practices in aspects such as: your service level agreements. Management indicators. Collection mechanisms.
Value generation mechanisms. Poor contract administration can generate loss of value in commercial transactions ranging between 17 and 40% ( source: kpmg ) . Therefore, it is essential that companies consider this item when evaluating their ebitda, something that could be increased with advice and practices such as those we have just reviewed.We live in an era in which technology is present in much (if not all) daily processes, and the corporate environment is one of those that can benefit the most from it. Companies, in their constant search to optimize resources and obtain maximum performance, have already seen how systems such as erp or crm have improved their processes and results, increasing productivity and performance at a general level. These types of tools are designed to address specific tasks, allowing companies to obtain benefits derived from the automation and monitoring of various tasks. In the case of crm - platforms designed so that companies can improve contact with customers and prospects - the benefits range from customer tracking to closing deals.