Contract Lifecycle Management using Microsoft Sharepoint 2016
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ROI Calculator: Compelling Returns from CLM Matrix Software Applications

Calculating Return on Investment

CLM Matrix offers calculators for both buy-side and sell-side scenarios. Each Return on Investment (ROI) calculator offers the flexibility for you to enter assumptions that reflect your organization’s current situation to more closely estimate returns that your organization may experience implementing our Matrix Software solutions.

Should you wish to discuss your organization’s specific buy-side or sell-side situation, please send an email to info@clmmatrix.com or call us at 800-961-6534.

Buy-Side ROI Calculator

Using assumptions you select for your organization, the CLM Matrix ROI calculator for buy-side agreements provides an estimated return you might expect to earn upon implementing Matrix Enterprise contract management software to manage your buy-side contracts. The calculator takes a conservative approach and is based upon the experience of organizations like yours and industry research findings. Actual returns may be higher or lower.

To calculate an ROI for your organization simply enter the appropriate values into the 5 fields below, then click Calculate ROI. The calculated total first year savings and ROI are presented at the bottom of the calculator.

TIP: Try different sets of values/assumptions in the fields to reflect the unique scenarios, departments, or locations for your organization.

ROI Calculator for Buy-Side Agreements


Roughly 25 - 50 percent of revenues, depending upon company's business and industry

Most companies have 70 - 80 percent of spend on-contract

The typical Fortune 1000 company maintains 20,000 to 40,000 active contracts at any given time.

Typically 10 percent of a company's contracts are auto-renew

Assume 20 percent renew/renegotiate per year
Total First-Year Savings:
 
Total First-Year ROI:
 

Key Assumptions

Below is a list of the key assumptions made in developing this calculator. These assumptions tend to the conservative side so that they might be representative to a broader audience of organizations considering an investment in contract lifecycle management software.

  • 10% of off-contract spend is brought on-contract, and that savings is 10% on that amount.
  • 25% of auto-renewals are renegotiated, and savings is 5%.
  • Pricing, rebate and penalty compliance results in 0.5% savings on 10% of total spend.
  • Typical cycle time of 25 days for each contract renegotiated is reduced by 20%.
  • The savings include a flat dollar amount for estimated penalty reductions.
  • Consolidation opportunities on 10% of contracted spend, and 3% savings on that amount.

Sell-Side Agreements

Using assumptions you select for your organization, the CLM Matrix ROI calculator for sell-side agreements provides an estimated return you might expect to earn upon implementing Matrix Enterprise contract management software to manage your sell-side contracts. The calculator takes a conservative approach and is based upon the experience of organizations like yours and industry research findings. Actual returns may be higher or lower.

To calculate an ROI for your organization simply enter the appropriate values into the 5 fields below, then click Calculate ROI. The calculated total first year savings and ROI are presented at the bottom of the calculator.

TIP: Try different sets of values/assumptions in the fields to reflect the unique scenarios, departments, or locations for your organization.

ROI Calculator for Sell-Side Agreements

Typically 75% of a company's revenue is under contract
The typical Fortune 1000 company maintains 20,000 to 40,000 active contracts at any given time.
Typically 25% of a company's contracts are auto-renew  
Typically 15% new contracts per year  
Total First-Year Savings:
 
Total First-Year ROI:
 

Key Assumptions

  • Assume maintaining 1% of previously defecting customer revenue through proactive renewals.
  • Assume that reduction in sales cycle of 5 days will add 5 incremental “revenue days” to first year, only on revenue realized from 20% of new contracts.
  • Assume that inaccuracies and non-compliance equate to 0.1% of annual contracted revenue.
  • Assume that rebates and penalties from non-compliance currently cost 0.5% on 20% of total contracted revenue.
  • Assumes typical cycle time of 25 days for each contract renegotiated, reduced by 20%. FTEs at $100k fully-loaded cost, working on contracts 33% each day of 240-day work year.