cloud-based contract management system

Around 80% of all business operations are governed by contracts. Contracts are an integral component of any business. Whether yours is a budding startup or an established company there is a good chance that you will have to deal with a multitude of contracts , such as partnership agreements, non-disclosure agreements general employment agreements, equipment and property agreements the list goes on. How effectively are you managing them? Do you have to rely on paperwork, spreadsheets and other legacy systems? Are you thinking about changing to contract management systems? If yes, then this article is for your needs.

contract management

Before you invest in a contract management program, ensure that you review these seven questions in order to beware of the traps.

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Does your software have AI capabilities?

contract life cycle management

With the large number of contractsin the market, maintaining consistency of managing contracts as well as getting the necessary information out is the biggest challenge. Organizations may not have a uniform method for organizing contract databases. Think about it, your business is home to numerous procurement contracts , each with different renewal dates and terms for renegotiation. Representatives from your team may be required to dedicate hours searching, reviewing and tracking the data to make sure that there aren't any opportunities left unnoticed. Instead, if you go with an AI-powered software for managing contracts, the task can be completed in minutes. Through Doc.AI capabilities, data like the title of the contract, the date of renewal, negotiation terms can be extracted. This helps with to review, approve and sign off.

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And that's not all about it. Additionally, advanced contract management systems that incorporate AI capabilities help to analyze contracts, evaluate clauses, and organize contracts according the kind of clauses. AI-enabled CMS are also a great aid to maintaining compliance with ever-changing laws. NLP analyzes every document and provides a list of threats and opportunities.

solution provider contract management software

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

best contract management software

The process of drafting contracts is among the most frustrating tasks. Think about how hard it could be to create documents with similar clauses including terms and condition, technical terms, and almost the exact same information a couple of times. That's why your CMS should provide easy-to-use templates and clause libraries across a variety of areas. When you use these templates, that have been approved by your editorial and legal teams, it is possible to swiftly draft contracts that do not have any problems with the language. Also, a section to centralize and standardize contracts means you get 360-degree view of the contract to track their progress using custom filters. Additionally, you can collaborate with your peers to look over as well as edit and archive.

What's the ROI-potential? How much could my company save?

The saving numbers are the largest factor in helping you take the final decision whether you should make the investment in a management solution or not. A study conducted by Goldman Sachs concluded that an automated contract management system can improve negotiations by 50 percent, lower payment errors by 75-90 percent, reduce the cost of managing contracts by between 10 and 30 percent and reduce the staff required for contract management of 10 to 20 percent. Indeed, contract administration does have the potential to be a value-for-money alternative, provided it is selected correctly.

Ideally, you should take into consideration factors such that the time spent on audits and tracking renewal dates, decrease in disputes over contracts or new opportunities as well as reducing the time to sell.

Can you customize the solution?

Virtually every vendor in the market claims to offer the best solution to meet the demands of every company. But is it always true? Instead of spending money for customization, consider a detailed breakdown of the process, critical steps needing improvement, think about options using more precise questions.

For example, in a typical contract management workflow once the contract manager drafts the documents it is routed by the system it to the approver. But, without limiting this basic option, a customisation might be an email message with the link to the document sent to the approver. The link should work or work with all devices, including smartphones, tablets as well as desktops.

However it is possible that highly customizable software will make it difficult and cumbersome to use, while simplicity may be insufficient. Hence, it's always a wise idea to consider how the software works and the capabilities of the people who will be using the software and take the necessary steps to make adjustments.

What are some special features or highlights that could reduce manual work?

Contracts are kept in a centralized, secure and searchable repository that has user-based access. This allows the best compliance and extensive reporting. For instance, contracts can be easily traceable , and the review and signing can be automated with e-signatures. Another possible example is statistics and analysis. To discover information about how long it took for an agreement to be negotiated, customers can easily assess limitations, find the number of iterations , and create comprehensive reports. This will further help in the addition of clause libraries, as well as providing insight on the performance history and cutting down on the time it takes to negotiate contracts.

Another essential feature to search upon is contract redlining or editing. Redlining highlights text to signal changes, additions to deletions, changes, approvals as well as rejections. This feature is extremely useful, especially when two or three people need to work on same document collaboratively. This allows more flexibility when reviewing and signing contracts.

How simple is it to install and use?

A contract management system that offers a simple interface and simple to use features will be appreciated by your customers. To maximize the benefits, while deploying, try to connect it to existing systems to reduce the period spent switching between different platforms. Examples, for example, integrating CRM to the new contract software can allow sales staff to automatically transfer customer information, build contracts and have them routed for approval, while also keeping track of the renewals, expirations and other dates.

The next step is to look for the process of onboarding. Ideal if it's an in-box solution, so that you are able to go live and become operational within a few weeks' time. Remember long deployment cycles are no longer sustainable.

7. The data and personal information be secure?

And lastly, but certainly not last data security is of essential importance. Because contracts contain highly private and sensitive data need to be shielded from unauthorized access in order to earn the respect of your group, be it partners, suppliers or customers. Plus, the increasing hacker attacks and malicious threats are putting companies at risks of potential legal, financial and brand liabilities. If you're looking to retain the trust of your important business relationships, double check that the provider has not suffered any serious security or security breaches.

Reach troyttmz021.wordpress.com/2021/12/24/cloud-based-contract-management-system/ out to our experts at [email protected] to find out how Vuram can help you with your Contract Management Solution.