What is essential for proper contract management within the Ariba system?

Automating compliance checks is essential for proper contract management within the Ariba system because it ensures that all terms and conditions of contracts are consistently adhered to throughout their lifecycle. By automating these checks, organizations can significantly reduce the risk of non-compliance, which can lead to financial penalties or legal issues.

Moreover, automation allows for real-time monitoring of contract performance and compliance against specified KPIs, facilitating quicker responses to any discrepancies or deviations. This proactive approach helps maintain contractual integrity and fosters trust between parties involved by ensuring that all parties are aligned with the agreed-upon terms.

On the other hand, tightening financial controls, frequent updates of contract terms, and integrating manual processes may not align with best practices in contract management or may even complicate the process. While these actions might contribute to certain aspects of governance or administration, they do not inherently enhance the effectiveness and efficiency that automation brings to compliance management within the Ariba system.