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5 Challenges of Contract Management DMCs Face

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5 Challenges of Contract Management DMCs Face

In the bustling world of travel management, success hinges on seamless coordination, efficient operations, and impeccable service. Behind the scenes, a robust travel back-office management system is the unsung hero that ensures the gears keep turning smoothly.

One vital aspect of this system is contract management – a complex terrain riddled with challenges that Destination Management Companies (DMCs), Online Travel Agencies (OTAs), and Travel Management Companies (TMCs) often encounter.

Let’s delve into the top five challenges faced by these industry players and explore how Unire, a dedicated back-office operations management company can provide solutions that blend technology with a human touch.

5 Challenges of Contract Management

1. Navigating the Contracts

Imagine planning an unforgettable journey, only to find that a crucial contract has vanished into thin air. For DMCs, the nightmare of missing contracts can lead to operational chaos, financial discrepancies, and frustrated clients.

A survey by Deloitte reveals that almost 62% of companies are unsure about the number of contracts within their organization, and many of them have even experienced a contract-related financial loss.

Storing these contracts in cloud and emails is not enough, an efficient travel contract loading system is required in the process of ensuring every vital document is securely stored and effortlessly accessible.

2. The Back-and-Forth

The process of redlining standard agreements is a tightrope walk that often leaves DMCs teetering between legal precision and efficient collaboration. When contracts are bogged down in endless rounds of revisions, deadlines slip, and opportunities evaporate. In fact, a report by the International Association for Contract & Commercial Management (IACCM) highlights that inefficient redlining processes can extend contract cycle times by 20%.

Utilizing an efficient contract loading system can do wonders in this process. The dedicated focus on data uploading can minimize the errors resulting in high-level precision.

3. Lack of Understanding

Contracts, with their intricate legal jargon, can resemble a foreign language to the uninitiated. DMCs often grapple with the complexities of the contracting process, leading to misunderstandings, incomplete obligations, and even legal disputes.

A study by McKinsey uncovers that companies that lack contract management expertise face a 2% to 5% reduction in annual profits.

The required contract management system can act as your contract management Sherpa, offering insightful guidance, clarifying the nuances, and ensuring that the path from negotiation to execution is traversed with confidence and clarity.

4. Scattered Data

The abyss of inadequate contract visibility can cast a shadow over even the most promising travel ventures. When crucial contract data is scattered across platforms and departments, crucial insights remain concealed, impairing decision-making and resource allocation.

Research by Gartner underlines that businesses with poor contract visibility suffer an average of 9% revenue leakage.

A technology-driven contract loading solution brings contracts out of the shadows, creating a centralized repository that sheds light on every facet of your agreements, empowering you with the information needed to make informed, strategic choices.

5. Poor Tracking

In the fast-paced realm of travel management, the ability to gauge performance through effective metrics tracking is paramount. Gaining insights into your organizational contract process across all lifecycle phases is imperative. It unveils inefficiencies, empowering Legal teams to enhance their data-driven approach. Identifying pertinent metrics for efficiency improvement aligns with specific goals.

Consider an enterprise striving for expedited contract management. Monitoring content creation metrics using various social media tools will do the work. Similarly, you should identify and utilize the metrics that suit best to your operational system.

An efficient travel contract loading will shed light on the crucial numbers that can help you set relevant tracking metrics for your business.

Unire Can Manage Those Pesky Contract for You: Contract Loading

The path to successful contract management in the travel industry is fraught with challenges, but each hurdle presents an opportunity for growth and improvement. Destination Management Companies, Online Travel Agencies, and Travel Management Companies must navigate the terrain of missing contracts, redlining, process understanding, contract visibility, and metrics tracking to thrive in an ever-evolving landscape.

Unire stands as a trusted ally, infusing technology with a human touch to conquer these challenges, elevate operational efficiency, and unlock the full potential of travel back-office management. Together, let’s chart a course toward a future where contracts are not just managed, but masterfully orchestrated for unprecedented success.

Ready to streamline your travel back-office operations and conquer the challenges of contract management? Experience the Unire advantage today and unlock a world of efficient, transparent, and strategic contract management.

Further reading – Chatbots in Travel Industry: Benefits and Use Cases in 2023

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