In a recent blog post by Tim Cummins of the IACCM, he observes that members of the international body of Contract and Commercial Managers that the IACCM represents, have noted that contract negotiations are becoming more adversarial and relationships between customer and supplier, increasingly one-sided.
This is despite efforts in recent years by the IACCM and others to promote win-win based collaborative commercial relationships. It would seem that when economic times get tough, buyers of goods and services will revert back to old practices of pushing for the lowest cost for the highest quality. Contracts that were negotiated before the recession, with long term goals in mind, are now being amended and changed to incorporate changes in payment terms, early terminatation clauses and other buyer-centric conditions.
Recent research by US law firm Fulbright & Jarowski would appear to back this observation up, as new research published by the firm, now indicates that over 60% of corporate litigtation is related to contract disputes.
Technology cannot change human behaviour, but contract management software solutions can have an important part to play in the development of long term win-win relationships between customers and vendors. Contract Management systems provide key business stakeholders on both sides of the commercial relationship with the right data and information to make sure that contracted commitments and obligations are adhered to; and if they are not, how to go manage amendments to contracted terms in the least disruptive way.
Visit www.dolphin-software.com to read more about how best-in-class contract management software can improve the management and productivity of relationships with your key customers and suppliers.
Download a free whitepaper on why Contract Management should be a strategic imperative for your business here: http://dolphin-software.com/lp_cm_whitepaper.htm