Market Expansion with the Help of Contract Compliance Audits
June 6, 2018
Expansion is one of the most delicate times for any organization. It’s easy for a business to overextend itself during an expansion, both financially and in terms of raw assets and resources. It’s during these times when a business can most benefit from the skill and experience of third-parties. Independent contract compliance audits can help procurement professionals expand into new markets by improving communication, refining performance, and avoiding traditional pitfalls.
Companies expanding into vastly new markets – such as international markets – are going to have to adjust their contracts accordingly. This does not just relate to different legal systems, but also the needs and expectations of different markets. Organizations may find that they have difficulty communicating their contractual needs or that they have a need for greater transparency throughout the process. A third-party, professional contract compliance audit will work to mitigate any potential disputes and to reduce potential contract-related misunderstandings.
Crossing Over into New Technology
When businesses expand, their technology is often the first thing that they choose to upgrade. Upgrading technology means new contracts: hardware, software, service-level agreements, and much more. Businesses have to make sure that their IT suppliers are compliant with contract standards. These contract compliance audits are incredibly important because of the sheer amount of money most businesses spend on their IT services. A small degree of non-compliance could have a substantial impact on the organization’s ROI. Improving upon compliance will provide a better revenue picture overall and help increase transparency and accountability.
Optimizing Compliance in Times of Growth
New markets mean new offices – and that doesn’t just mean new technology. That means new partnerships, new deals, new customers, and (of course) new contracts.
Procurement professionals can often find themselves losing money when they are negotiating new long-term deals but aren’t paying attention to their contract compliance. Contract compliance doesn’t just assist the organization in making sure that their existing contracts are currently compliant; contract compliance audits will also develop new strategies and processes for the organization moving forward, so that contracts will remain compliant.
Though any expansion is going to be a little tumultuous, it doesn’t have to be chaotic. Auditing – especially when completed by qualified, independent professionals – is the key to maintaining smooth operations. Through contract compliance audits, organizations can ensure that they are still getting their most critical business processes fulfilled. Organizations can further improve their communications, increase transparency, maximize their ROI, and promote growth, all by ensuring that their contracts are being fulfilled as they should be.
For more information about the benefits of contract compliance auditing – both regularly and through events such as expansion – download our complimentary eBook today. To learn more about how to develop greater transparency, accountability, and trust with key third-parties, click here for more insights from SC&H Group’s Contract Compliance Audit team.