cloud-based contract management system

A majority of business activities are controlled by contracts. Contracts make up a significant part of every business. If you're a young startup or a large organization You're likely to manage hundreds of agreements like partnership agreements, non-disclosure agreements or general employment agreements property and equipment contracts The list is endless. What do you do to manage them? Do your operations rely on paper or spreadsheets along with other older systems? Are you thinking about changing to contract management systems? If so, this article is for.

contract management

Before you invest in a contract management software, ensure that you review the seven issues to avoid common pitfalls.

software solutions contract management tools

Does the software contain AI capabilities?

contract life cycle management

With the large number of contracts, ensuring consistency while managing contracts and pulling out essential information pose an enormous challenge. Organizations may not have a standardized method of 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 may be required to dedicate hours researching, reviewing and archiving the data to make sure that no opportunities are missed. Instead, if you go for an AI-powered solution for contract management, the job can be completed in only a few minutes. By using Doc.AI capabilities, documents such as the title of the contract, the date of renewal contract terms, and renewal dates are extracted. This makes it easier for the review, approval and sign-off process.

software contract management

Then there's more to it. Advanced contract management systems that incorporate AI capabilities allow you to review contracts, compare clauses, and organize contracts according the kind of clauses. AI-enabled CMS can also aid in being in compliance with the ever-changing regulations. NLP analyzes every document, highlighting the risks and opportunities.

solution provider contract management software

Are there templates that are standard for contract making and editing?

best contract management software

The writing of contracts is among the most tedious things. You can imagine just how laborious it would be to write contracts with similar clauses as well as terms and conditions, jargons, and almost exactly the same content several of times. This is why your CMS must have easy-to-use templates and clause libraries in a variety of areas. Using these templates, pre-approved by your legal and editorial teams, you are able to quickly write contracts without defects in language. Plus, a provision to standardize and centralize contracts provides you with an all-round view of the contract to track your contracts using flexible filters. Furthermore, you are able to collaborate with your peers to look over and edit them and then store them.

What's the potential for ROI? What amount can my company save?

Savings figures are the greatest motivators to make the right decision whether to purchase a contract managing solution or not. A study conducted by Goldman Sachs concluded that an automated contract management system could speed up negotiations by 50 %, cut payment mistakes by 75 to 90 percent, cut the cost associated with managing contracts between 10 and 30 percent and cut the number of employees needed to manage contracts by 10-20 percent. Indeed, contract administration could be an effective cost-effective choice, if it is chosen properly.

Ideally, you need to take into account factors such as the time spent on audits and tracking renewal dates, decrease in disputes over contracts creating new opportunities and a reduction in the sales cycle.

Are the solutions customizable?

Nearly every company in marketplace claims that they provide an option that is custom-made to meet the demands of every company. But is this always the case? Instead of spending a fortune on customization, thoroughly describe your workflow, processes that are crucial or improvements required, and examine contract life cycle management options with more specific questions.

For example: In a typical workflow for managing contracts when the writer drafts the documents and the system processes it, it automatically sends the document to the person who approves. However, rather than relying on this simple option, a customisation might be an email message containing the document link sent to the person who approves. The link should also support or work with every device - smartphones, tablets and desktops.

At the same time the software's high degree of customization could make it difficult and cumbersome to use. In addition, simplicity can be too little. Therefore, it's a great idea to think about the benefits and capabilities of the staff that will utilize the software and then decide on the best way to customize.

What are some notable features that can speed up manual processes?

Within a Contract Management System, contract documents are stored in a secure, centrally located and searchable archive with user-based access. This allows optimum compliance and ample reports. For instance, contracts can be easily tracked and the review and signing process is streamlined with electronic signatures. Another possible example is Analytics and metrics. To collect data about how long it took for negotiations, contract participants are able to easily identify problems, calculate the number of iterations and then create detailed reports. This is also helpful in incorporating clause libraries, as well as providing insight on the performance history and making the process more efficient and reduce the cycle times of the contract.

A different important thing to look for is contract redlining, also known as editing. Redlining is the process of highlighting the text to indicate additions, modifications deletions, approvals and rejections. This feature can be useful particularly when two or more users wish to work on the same document together. It provides a greater flexibility when reviewing and signing contracts.

What is the process to use and deploy?

A contract management program which has a simple interface that is easy to use will be loved by your end customers. To maximize the benefits, while you're deploying, be sure to integrate it with current systems that cut down on the period spent switching between platforms. For example, integrating CRM and the new software for contract management can enable sales people to provide customer data, design contracts and submit them for approvals, in addition to being in charge of the renewals, expirations and other dates.

After that, check for the process of onboarding. This is especially helpful if it's an existing solution, meaning that you can go live and become operational within a few weeks' time. It is important to remember that lengthy deployment cycle are not viable anymore.

7. The data and personal information be safe?

The last but not least the security of data is of crucial importance. Because contracts contain highly private and sensitive information that must be kept secure against unauthorized access to ensure the trust of your entire circle of friends whether that be your partners, suppliers or customers. Furthermore, the rise of cyber attacks and malicious threats put companies at risks of potential legal fiscal, brand, and financial obligations. If you're looking to keep the trust of the most important business relationships you have verify that the provider hasn't suffered any significant security compromises.

Get in touch with our experts via [email protected] to find out how Vuram can help you with your Contract Management Solution.