With the importance of third-party relationships in today’s business environment, organizations invest extensive time, energy, and resources in setting initial contract terms. However, they often fall short in maintaining that attention throughout the contract lifecycle. The advantages of integrating ongoing contract compliance are featured below in the first part of our graphic animation series.
For companies that rely on third parties to execute business objectives, contracts serve as an important foundation, defining the relationship terms and outlining responsibilities, deliverables, and compensation.
A well-developed contract can minimize risk and maximize returns, so it’s only natural that companies invest significant time, energy, and resources to negotiating the best possible terms.
But, what would happen if you put your contracts—and their corresponding relationships—under the microscope? Even highly successful and sophisticated companies can overlook noncompliance during contract performance, which can lead to margin erosion.
Thus, a contract compliance audit program should be an integral part of your corporate DNA. Ultimately, proactive and periodic contract compliance reviews can strengthen third-party relationships, significantly decrease risk, and protect savings and earnings.
Want more information about contract compliance audits and the benefits of adopting this powerful but often overlooked tool? In a recent white paper, SC&H Group’s Contract Compliance Audit Services team discusses the top ten indicators that it’s time to implement a contract compliance audit process. Click here to read this paper today.
To learn more about how SC&H Group can help you reduce costs and develop greater trust, transparency, and accountability with third-party suppliers, click here.