According to the Gartner Group, 60% of all supplier contracts automatically renew without the buyer's knowledge, mainly because the buyer fails to terminate the contract. Even more astonishing is the fact that 50% of the contracts are renewed several times without the buyer's knowledge (Forbes, Gardner group).
A laissez-faire attitude towards contract management can have serious financial consequences, as automatic contract renewals often involve more expensive terms and late terminations can lead to litigation and damage. Contracts are not documents to "sign and file", they are rather living documents that are subject to real events / changes.
Actions of the parties involved can trigger contract clauses and require the fulfillment of requirements based on certain deadlines (framework contracts). The best solution for managing these living documents is to use a software platform that facilitates and covers the entire lifecycle of contracts and ensures it in conjunction with a defined contract management process.