Contract compliance monitoring

Strategic alliances and partnerships with other companies are common and often essential in today’s marketplace. They can help companies gain competitive advantages in technological innovation, growth, pricing, profitability, rapid market capture, quality and global strategy.

Many contracts can appear to produce short-term or instantaneous ‘financial results’ by verifying and analysing whether the counterparty complies with the details of the contract. Often, such verification and analysis are conducted based on the provisions of the auditing authority in the contract. However, these ‘financial outcomes’ actually refer to revenue collection (for licencing or revenue-distribution contracts) or to cost reduction (for contracts related to sales and distribution, outsourcing, or procurement). These results have a direct effect on improving profitability and other aspects of corporate performance. In other words, contract compliance contributes to the improvement of ROI (return on investment) and cash flow.

Japan’s corporate governance places great importance on the interests of shareholders and other stakeholders. This makes your management’s commitment to contract compliance crucial for meeting expectations and acquiring strategic advantages.