cloud-based contract management system
Around 80% or more of the business activities are controlled by contracts. Contracts play a vital role in the operation of any business. When you are a startup or a large organization there is a good chance that you will be working with hundreds of agreements like partnership agreements, non-disclosure agreements as well as general employment contracts. property and equipment contracts there are many more. How well are you managing these contracts? Do you rely heavily on documents in spreadsheets, documents, or other systems? Have you thought about moving to contract management systems? If so, this article is for YOU.
Before investing in a contract management program, be sure to study these seven questions to avoid the pitfalls.
software solutions contract management tools
Does the software contain AI capabilities?
contract life cycle management
With the abundance of contracts, keeping a consistent system while managing contracts and collecting essential data is an enormous problem. The companies may not have uniform method for organizing contract databases. If your business is a good example, it has many procurement contracts , each with different renewal dates and terms for renegotiation. A team of representatives will likely to be tasked with in tracing, reviewing and recording the data to ensure no opportunities are left unnoticed. Instead, if you opt for an AI-powered contract management system, the job can be accomplished in a matter of minutes. Through Doc.AI capabilities, information such as contracts' titles, renewal dates contract terms, and renewal dates are extracted. This makes it easier to conduct reviews, approvals and signs offs.
software contract management
That's not all there is to it. Furthermore, advanced contract management systems equipped with AI capabilities help to analyze contract clauses, compare clauses and classify contracts according to the kind of clauses. AI-enabled CMS will assist with staying in line with the evolving laws. NLP analyses every document and highlights the threats and opportunities.
solution provider contract management software
Are there standard templates for contract creating and editing?
best contract management software
The process of drafting contracts is among the most laborious tasks. Consider how challenging it could be to prepare documents with similar clauses such as terms and terms, jargons, and almost identical content a lot of times. And this is why your CMS should have templates that are easy to use and clause libraries that cover a variety of areas. If you make use of these templates that have been approved by your editorial and legal teams, you can swiftly draft contracts without any defects in language. Plus, a provision to standardize and centralize contracts gives you a 360 degree view on the contracts. You can track the contract's history using customizable filters. You can also be able to collaborate with others to review and edit them and then store them.
What is the ROI potential? What are the costs my company could reduce costs?
The savings figures are the most persuasive factors to take the final decision whether to make the investment in a management solution or not. A study conducted by Goldman Sachs concluded that an automated contract management system could speed up negotiations by 50 %, decrease payment errors by between 75 and 90 percent, cut the cost management of contracts by between 10 and 30 percent and cut the number of employees needed to manage contracts by between 10 and 20 percent. Also, it is true that managing contracts indeed can be a cost-effective alternative, provided it is selected correctly.
Ideally, you must take into account elements such as time spent in audits and monitoring renewal dates, decreased disputes regarding contracts and the creation of new opportunities and reduction of sales cycle.
Is the solution scalable?
Nearly every company in this market claim to offer solutions that are custom designed to meet the needs of every organization. What if that isn't the case? Instead of wasting money in customization, be specific about the workflow, the critical processes needing improvement, consider options using more precise questions.
For instance, in a typical workflow for managing contracts in which the writer creates the documents it is routed by the system the document to the person who approves. However, rather than relying on this simple function, a modification could be an email notification which includes the document's URL sent to the person who approves. This link must support or work on every device - smartphones, tablets and laptops.
Yet the software's high degree of customization could be a hassle to use, and the simplicity could also be too simple. Thus, it's always great idea to think about the pros and cons and the level of sophistication of the individuals who will utilize the software and take the necessary steps to make adjustments.
What are some distinct features or highlights that can be used to reduce manual procedures?
Within a Contract Management System, contract documents are stored in a secure, centrally located and searchable repository , with user-based access. This facilitates optimum compliance as well as extensive reporting. In particular, contracts could be easily tracked and the process of reviewing and signing is made easier by e-signatures. Another option is statistics and analysis. To gather information about how long it took concluding a contract, people can quickly look over gaps, analyze the number of iterations as well as create comprehensive reports. This is also helpful in incorporating clause libraries and gain insights into past performance and reducing the contract cycle times.
A different important thing to look for are contract redlining or editing. Redlining is the act of highlighting software solutions contract management tools text to signify changes, additions of deletions, approvals, and rejections. This feature is very useful, especially when there are two or more persons who are working on the same document collaboratively. It gives you more range of flexibility in reviewing and negotiating contracts.
What is the process to set up and use?
A contract management application with an intuitive interface, easy-to-use features will be highly regarded by your users. To gain maximum advantage, during the time of deployment, try to connect it to current systems that cut down on the need to move from one platform to the next. For instance, integrating CRM with the new software for contract management can aid sales personnel in automating send customer information to create contracts and have them routed for approval, as well as keeping track of renewals, expirations and other important dates.
The next step is to search for the process of onboarding. Excellent if this is an off-the-shelf solution that you are able to begin to live and operational in a few weeks' time. Keep in mind that lengthy deployment cycles are no longer tenable.
7. Do the private and confidential information be secure?
Last but not the least important, data security is absolute importance. Because contracts contain highly confidential and sensitive data and sensitive information, they should be protected from unauthorized access , in order to earn the confidence of your friends, be it partners, vendors or clients. In addition, the increase of security threats and cyberattacks make businesses more susceptible to the possibility of legal branding, financial and legal liabilities. If you're trying to keep the trust of your business partners Make sure the supplier hasn't had any serious data or security breaches.
Reach out to our experts at email@example.com to learn how Vuram can help you with your Contract Management Solution.