Updated 6/15/2021 at 3:20pm ET
Growth is a common goal of any organization. However, during periods of growth, organizations can easily extend their resources past what they’re capable of in terms of money and manpower. It is during these times when a business can leverage the 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 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.
Leveraging Emerging Technology
When businesses grow, their technology is often one of the first investments. Technology investments usually involve new contracts: hardware, software, service-level agreements, and much more.
Businesses must 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 return on investment (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 don’t just mean new technology – it means new partnerships, new deals, new customers, and of course, new contracts.
Procurement professionals can save a lot of money when they are negotiating new long-term deals if they keep their contract compliance top of mind. 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.
Organizational growth is naturally going to encounter unexpected challenges, yet many challenges can be anticipated. Auditing – especially when completed by qualified, independent professionals – is the one of the keys to proactively staying in front of potential issues. 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 times of growth – download our 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.