cloud-based contract management system
Nearly 80% of business activities are controlled by contracts. Contracts form an integral part of any business. When you are a startup or a large organization the chances are that you'll be dealing with hundreds of contracts . These include partnership agreements non-disclosure agreements General Employment Contracts, equipment and property agreements The list of contracts is endless. How well are you managing them? Do you still rely on paper spreadsheets, spreadsheets, and other old systems? Have you thought about moving to contract management systems? If so, this article is perfect for you.
Before you invest in a contract management software, make sure you look over the following seven questions to avoid any pitfalls.
software solutions contract management tools
Does the program include AI capabilities?
contract life cycle management
With the sheer volume of contractsin the market, maintaining consistency of managing contracts as well as getting essential information to be accessed is an enormous problem. The companies may not have uniform way to organize their contract databases. If your business is a good example, it has a large number of procurement contracts that have different renewal dates and terms for renegotiation. A team of personnel may have to spend hours looking over, analyzing and tracking the data to make sure that the opportunity isn't missed. If you opt in an intelligent contract administration system powered by AI task can be completed in only a few minutes. Thanks to Doc.AI capabilities, information such as contracts' titles, renewal dates contract terms, and renewal dates are extracted. This makes it easy for the review, approval and sign-off process.
software contract management
However, that's just the beginning of it. Additionally, advanced contract-management systems with AI capabilities allow you to review contracts, examine clauses and clauses and classify contracts according to the kind of clauses. AI-enabled CMS are also a great aid to staying compliant with the changing laws. NLP examines each document and identifies the risks and opportunities.
solution provider contract management software
Are there standard templates for contract draft and editing?
best contract management software
Contracts are among the most tedious things. Think about how hard it would be to create documents with similar clauses or terms and conditions terminology, and identical content hundreds of times. This is the reason your CMS is required to have simple templates and clause libraries for a variety of areas. These templates, when approved by your editorial and legal teams, it is easy to create contracts that are free of grammar or language issues. Plus, the ability to centralize and standardize the contract means you will have all angles of the contract documents to look over your contracts using flexible filters. Furthermore, you are able to cooperate with colleagues to read the documents, make edits and save them.
What's your ROI potential? What amount can my company save?
The savings numbers are one of the largest argumentative factors that can help you determine whether you should consider investing in a contract management program or not. A study conducted by Goldman Sachs concluded that an automated contract management system can speed up negotiations by fifty percent, reduce payments errors by between 75 and 90 percent, reduce the cost management of contracts by 10 to 30 percent and reduce the staff required to manage contracts of 10 to 20 percent. Also, it is true that managing contracts indeed can be a cost-effective option, but only if it's chosen wisely.
Ideally, you must consider factors such that the time spent on audits and tracking renewal dates decrease in disputes over contracts, creation of new opportunities that reduce the cycle of sales.
Can you customize the solution?
Nearly every company in their market promises to provide the best solution to meet the demands of every business. But is that always true? Instead of spending hundreds of dollars to customize your experience, take the time to understand the workflow, crucial processes enhancements that are required, consider options using more specific questions.
A good example is: in a typical contract management workflow where the person who drafts the documents the system routes it to the approver. If you don't want to stop at this basic attribute, a further customization could be an email notification that includes the document's link to the person who approves. This link should be compatible or work with any device: smartphones, tablets and laptops.
Yet highly customizable software can be a hassle to use, and the simplicity could be too much. It's therefore a wise idea to consider how the software works and the capabilities of the group that will be using the software and then decide on the best way to customize.
What are some notable features that could reduce manual work?
The contracts in a system for contract management are saved in a central, secure and searchable library with user-based access. This facilitates optimum compliance as well as extensive reporting. In particular, contracts could be easily traced and the review and signing process can be made more efficient with electronic signatures. Another option is metrics and analytics. To gather information about how long it took negotiations, contract participants can easily assess problems, calculate the number of iterations and prepare comprehensive reports. This will also aid in incorporating clause libraries and gain insights into the historical performance and decreasing the cycle time of contracts.
Another important aspect to look out for is contract redlining, also known as editing. Redlining is when the text is highlighted as a way to identify changes, additions of deletions, approvals, and rejections. This is a useful feature particularly in situations where two or more people are working on the identical document in a collaborative manner. This feature gives more flexibility while reviewing and negotiating contracts.
How simple is it to deploy and use?
A contract management program with a user-friendly interface, easy-to-use features will be adored by your customers. To maximise the benefit when deploying, you should connect it to existing systems that will cut down on time spent on navigating from one platform to the next. For example, integrating CRM and the new contract software may enable sales people to transmit customer information, develop agreements and direct them to approval, in addition to being in control of all the renewals, expirations and other important dates.
Next would be to check for the onboarding process. It is ideal if it's an easy-to-use solution, so you are able to start to go live and be operational within a short time. It is important to remember that lengthy deployment cycle are not viable any longer.
7. The data and personal information be secure?
The last but not least data security is of paramount importance. Because contracts contain highly confidential and sensitive information and sensitive information, they should software contract management be protected from unauthorized access in order to earn the confidence of your family which includes partners, vendors or customers. Plus, the increasing cyber attacks and malicious threats are putting companies at risk of potential legal, financial and brand liabilities. If you're planning to keep the trust of your key business relationships be sure to confirm that the supplier hasn't had any serious data or security breaches.
Contact our experts at firstname.lastname@example.org to learn more about the Vuram Contract Management Solution.