cloud-based contract management system
More than 80% of businesses operations are governed by contracts. Contracts are a crucial part of any business. In the case of a start-up or a major corporation there is a good chance that you will have to deal with a multitude of contracts . For example, partnership agreements non-disclosure agreements, general employment contracts, equipment and property contracts The list of contracts is endless. What is your strategy for managing them? Do your operations rely on paper spreadsheets, spreadsheets, and other old systems? Have you thought about switching to contracts management software? If so, this article can help.
Before you invest in a contract-management system, ensure that you study these seven points to avoid any pitfalls.
software solutions contract management tools
Does the program come with AI capabilities?
contract life cycle management
With the sheer amount of contractsand the need to maintain uniformity of managing contracts as well as collecting essential data is an immense challenge. It is possible that organizations do not have a common method of organizing contract databases. For instance, your company has an abundance of procurement contracts that have varying renewal dates and renegotiation conditions. A team of workers will likely to be tasked with looking over, analyzing and tracking the data to make sure that no opportunities are left unnoticed. Instead, if you go using an artificial intelligence-powered system to manage contracts, your job could be completed in less than a minute. Thanks to Doc.AI capabilities, details such as names of contracts, renewal dates agreements, and other terms of negotiation can be extracted. This makes it simpler for reviewing, approvals, and sign-offs.
software contract management
However, that's just the beginning of it. In addition, advanced contract management systems equipped with AI capabilities will help you review contracts, evaluate clauses, and classify contracts in accordance with the kind of clauses. AI-enabled CMS will assist with being in compliance with the ever-changing laws. NLP analyzes every document, highlighting the risks and opportunities.
solution provider contract management software
Are there standard templates for contract creating and editing?
best contract management software
Contracts are among the most frustrating tasks. Just imagine how hard it would be to write documents that contain similar clauses or terms and conditions language, and nearly the same content a number of times. This is why your CMS should be able to provide templates and clause libraries in a variety of areas. By using these templates that have been pre-approved by your editorial and legal teams, you will be able to quickly draft contracts that do not have any problems with the language. Additionally, the option to centralize and standardize contracts gives you a 360 degree view of the contract to track the contract's history using customizable filters. You can also collaborate with peers to review editing, storing and revising.
What's the ROI potential? What can my company reduce costs?
The savings figures are the biggest persuaders to help you take the final decision whether you should invest in a contract-management program or not. A study by Goldman Sachs concluded that an automated system for managing contracts can accelerate negotiations by 50 percent. It can also reduce payment errors by 75 to 90 percent, reduce the cost to manage contracts by 10-30 percent and cut the headcount required for contract management in between 10-20 percent. It is true that contract best contract management software management is a viable cost-effective option, if you choose it correctly.
It is recommended to consider elements such as time spent on audits and tracking renewal dates, decreasing disputes on contracts or the creation of new opportunities and reduction of sales cycle.
Can the solution be customized?
Each and every company on business claims to offer a solution that is tailored to the specific requirements of every business. But is it always true? Instead, instead of spending a lot for customization, take a look at the workflow, critical processes needs to be modified, then explore options with more precise questions.
A good example is: in a typical workflow for managing contracts in which the writer creates the documents the system is able to automatically route the document to the person who approves. However, rather than relying on this simple element, an additional feature could be an email notification with the document's link to the approver. The link should also support or work on every device, including smartphones tablets and desktops.
Yet highly customizable software can create a complicated and cumbersome for users, and ease of use may also prove too little. It's therefore a best practice to analyze the trade-offs and sophistication of the team who will be using the software , and then device on customization.
What are some of the notable features that can speed up manual processes?
Contracts are stored in a central, secure and searchable database that allows users to have access. This ensures maximum compliance and extensive reporting. In particular, contracts could be easily traced, and the process of reviewing and signing can be made automated using electronic signatures. A different example would be measurement and analytics. To pull out information on how long it took to negotiate a contract, the users are able to quickly identify the bottlenecks, identify the number of iterations needed and make comprehensive reports. This will also aid in adding clause libraries, gaining insights into the historical performance and cutting down on the time it takes to negotiate contracts.
Another key element to look to is redlining in contracts, also known as editing. Redlining is the act of highlighting text to signal changes, additions to deletions, changes, approvals as well as rejections. This feature can be helpful, especially for situations where more than one person need to work on identical document in a collaborative manner. It offers greater flexibility when reviewing and signing contracts.
What is the process to install and use?
A contract management tool that features an intuitive interface as well as user-friendly features will enjoy the admiration of your customers. To get the most benefit, when you are deploying it, try to connect it to existing systems , which will reduce the amount of time spent navigating between platforms. Example, integrating CRM with the new contract software can enable sales people to supply customer data, make contracts and route them for approvals, in addition to being in control of the renewals, expirations and other dates.
Following that, you should look for the onboarding process. A great option if the onboarding process is an on-the-spot solution that you are able to start to go live and be operational in a few weeks' time. Remember that lengthy deployment cycles can no longer tenable.
7. Do the private and confidential information be secure?
The last but not least most importantly, data security is utmost importance. As contracts contain highly confidential and sensitive data It is imperative to secure them from unauthorized access in order to earn the trust of your circle, be it partners, vendors or customers. Additionally, the increase in security threats and cyberattacks can expose businesses to danger of legal claims, financial or brand-related liabilities. If you're trying keeping the trust of your business partners verify that the provider hasn't been hit by any serious security attacks.
Connect with our experts through email@example.com to learn how Vuram can help you with your Contract Management Solution.