cloud-based contract management system
More than 80% of businesses operations are managed by contracts. Contracts are a crucial part of every company. Even if yours is a small enterprise or a big corporation probably you'll manage hundreds of contracts such as partnership agreements non-disclosure agreements general employment contracts equipment and property agreements, the list is endless. How well are you managing them? Do you use paper in spreadsheets, documents, or other systems? Have you considered moving to contracts management software? If yes, then this article is for YOU.
Before investing in an automated contract management system, ensure that you have a look at these seven points to make sure you don't fall into traps.
software solutions contract management tools
Does the software include AI capabilities?
contract life cycle management
The sheer volume of contractsin the market, maintaining consistency management of contracts, and retrieving important information is an enormous challenge. The companies may not have uniform method for organizing contract databases. Think about it, your business is home to a large number of procurement contracts that have different renewal dates , renegotiation and renewal terms. A team of workers might have to devote hours researching, reviewing and archiving the data to ensure you don't miss any opportunities. If you opt with an AI-powered software for managing contracts, the job can be accomplished in a matter of minutes. By using Doc.AI capabilities, information like contract titles, renewal dates the negotiation term can be extracted. This makes it much easier to do reviews, approvals , and sign-offs.
software contract management
But that's not the only thing about it. Additionally, advanced contract management systems that incorporate AI capabilities will help you review contracts, review clauses, as well as classify contracts by the type of clauses. AI-enabled CMS are also a great aid to keeping up with changing regulations. NLP analyses every document and identifies the risks 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 difficult tasks. Imagine how difficult it would be to draft documents best contract management software that have similar clauses as well as terms and conditions, vocabulary, and virtually the exact same information a couple of times. That's why your CMS should be able to provide templates and clause libraries that cover different fields. These templates, when approved by your editorial and legal teams, you will be able to quickly make contracts with no issues with language. Plus, a provision to centralize and standardize contracts allows you to have a 360 degree view on the contracts. You can track the contracts with filters that can be customized and collaborate with other colleagues to review or edit the contract and then save it.
What's your ROI potential? How much can my organization reduce costs?
The savings numbers are most convincing factors that will help you take the final decision whether to purchase a contract managing method or no. A study by Goldman Sachs concluded that an automated contract management system can accelerate negotiations by up to 50 percent, cut down on payment errors by between 75 and 90 percent, lower the cost management of contracts by between 10 and 30 percent and cut the headcount required to manage contracts by 10 to 20 percent. Also, it is true that managing contracts can indeed be a cost-effective option, when it is used correctly.
Ideally, you need to take into account factors such as the time spent in audits and monitoring renewal dates, decrease in disputes over contracts creating new opportunities that reduce the cycle of sales.
Are the solutions customizable?
Most of the companies in markets claims they provide an answer that is customized to meet the needs of every company. But is that true? Instead of spending thousands for customization, take a look at the workflow, critical processes, improvements needed, and look into options by asking more specific questions.
For example: In a typical workflow for managing contracts, once the author drafts the documents it is routed by the system the document to the person who approves. But, without limiting this basic function, a modification might include an email containing the document link sent to the person who approves. The link should also support or be compatible with all devices- smartphones, tablets and computers.
But highly customizable software can be a hassle in use. Its simplicity could be too much. It's therefore a best practice to analyze the benefits and complexity of the person who will use the software and then make a decision on how to tailor it.
What are some particular features or features that can be used to reduce manual procedures?
As part of a contract administration system, agreements are stored in a centralized, secure and searchable storage facility with user-based access. This ensures maximum compliance and large-scale reports. In particular, contracts could be easily tracked, and the process of reviewing and signing is streamlined with electronic signatures. Another option is measurements and analytical. To extract information on how long it took an agreement to be negotiated, customers are able to easily identify obstructions, as well as the number of iterations as well as create comprehensive reports. This can further assist when adding clause libraries, and gain insight into historical performance and in decreasing the cycle time of contracts.
A different important thing to look for are contract redlining or editing. Redlining highlights text to signal changes, additions to deletions, changes, approvals as well as rejections. This is a useful feature particularly when more than two people are working on the same document collaboratively. It will give you greater possibility of reviewing and discussing contracts.
It is easy to set up and use?
A contract management system that is user-friendly that is easy to use will be highly regarded by your users. To get the most benefit, when deploying, you should integrate it with current systems that cut down on the time required to switch from one platform to the next. For instance, the integration of CRM with the new contract software will aid sales professionals to automate feed information about customers, create contracts , and distribute them to approval, as well as having control over all renewals, expirations and other dates.
The next step is checking for the process of onboarding. Great if it is an on-the-spot solution that you are able to take off and get operational within a few weeks' time. Be aware that long deployment cycles are no longer tenable.
7. The data and personal information be secure?
Not the least Security of data is of paramount importance. Since contracts contain highly confidential and sensitive information the information must be secure from unauthorized access in order to earn the trust of your circle such as partners vendors or customers. Plus, the increasing security threats and cyberattacks are putting companies at the possibility of legal brands, financial, and other liabilities. If you're looking maintaining the trust of the most important business relationships you have verify that the provider hasn't suffered any significant data attacks.
Talk to our experts on firstname.lastname@example.org to find out what Vuram has to offer in its Contract Management Solution.