cloud-based contract management system
A majority of business operations are managed by contracts. Contracts are an integral component of any business. When you are a startup or a large organization You're likely to have to deal with a multitude of contracts such as partnership agreements non-disclosure agreements general employment agreements, equipment and property contracts The list is endless. What do you do to manage these contracts? Do you depend on paper or spreadsheets as well as other traditional systems? Have you considered moving to contract management systems? If so, this article is for YOU.
Before you invest in a contract management system, make sure you analyze these seven questions in order to beware of the traps.
software solutions contract management tools
Does your software have AI capabilities?
contract life cycle management
In the midst of the awe-inspiring volume contract information, ensuring that there is a uniform approach in managing contracts, as well as pulling out essential information pose huge challenges. There may not be a common method of organizing contract databases. Think about it, your business is home to an extensive number of procurement contracts with various expiration dates and renegotiation provisions. The team of reps may have to spend hours looking over, analyzing and tracking the information to ensure that the opportunity isn't missed. If you opt for an AI-powered solution for contract management, the job will be done in mere minutes. By using Doc.AI capabilities, information like contract titles, renewal dates the negotiation term can be extracted. This allows for easier reviews, approvals , and sign-offs.
software contract management
That's not all there is to it. In addition, advanced contract management systems equipped with AI capabilities could help review the contract, assess clauses and sort contracts according to the kind of clauses. AI-enabled CMS can also help in complying with changes in regulations. NLP analyses every document and highlights the threats and opportunities.
solution provider contract management software
Are there standard templates for contract edits and drafting?
best contract management software
Contracts are among the most tedious things. How difficult could be to come up with documents with similar clauses or terms and conditions words, and basically the exact same content many of times. And this is why your CMS is required to have simple templates and clause libraries across different fields. If you make use of these templates that have been approved by your legal and editorial teams, you will be able to quickly write contracts without problems with the language. Also, a section to standardize and centralize contracts ensures that you have a 360 degree view of the contract, which allows you to track the contract's history using customizable filters. You can also co-work with colleagues on how to read the documents, make edits and save them.
What is the ROI potential? How much can my organization save?
The savings figures are contract life cycle management the most powerful argument to determine whether you should consider investing in a contract management tool or not. A study by Goldman Sachs concluded that an automated system for managing contracts can speed up negotiations by 50 percent, reduce payment errors by between 75 and 90 percent, decrease the expense of managing contracts by 10-30 per cent and cut the total number of people needed for contract management by 10-20. The fact is, contract management actually can be a very cost-effective solution, if done correctly.
Ideally, you need to take into account things like the amount of time in audits and tracking renewal dates reduction in contract disputes as well as the creation of new possibilities which will reduce sales cycle.
Are the solutions customizable?
Nearly every service provider in their market promises to offer a service that is specifically designed to the requirements of every organization. But is that true? Instead of spending money to customize your experience, take the time to understand the workflow, the critical processes changes that must be made, then explore options with more precise questions.
A good example is: in a typical workflow for managing contracts where the writer writes the documents, the system automatically routes it to the approver. However, rather than relying on this simple element, an additional feature can be a notification via email containing the document link sent to the approver. The link should also support or function on every device - smartphones, tablets and laptops.
While at the same time highly customizable software can be a hassle to use. In addition, simplicity can also mean too much. Hence, it's always a sensible idea to examine the benefits and capabilities of the group that will be using the software , and then determine how you can customize it.
What are some notable features that will reduce manual labor?
The contracts in a system for contract management are kept in a centralized, secure and searchable library with user-based access. This facilitates optimum compliance as well as ample reports. For instance, contracts could be easily traceable , and the procedure of reviewing and signing can be made more efficient with electronic signatures. Another example would be metrics and analytics. To discover information about how long it took negotiation of a contract, they will be able to analyze issues, figure out the amount of iterations and prepare comprehensive reports. This will aid in adding to clause libraries, as well as providing insight on the performance history and increasing the speed of contract negotiation.
Another crucial aspect to look towards is contract redlining or editing. Redlining highlights the text in order to mark changes, additions in addition to deletions. It also indicates approvals and rejections. This feature is useful particularly for situations where more than one person need to work on same document collaboratively. This feature gives more ability to review and negotiate contracts.
It is easy to use and deploy?
A contract management program which has a simple interface with easy-to-use features will be appreciated by your customers. To obtain the maximum benefit when deploying, you should connect it to existing systems that will cut down on time required to switch between different platforms. For example, integrating CRM and the new contract software may allow sales staff to automatically feed customer information, create contracts , and distribute them to approval, while also being in control of all the expirations, renewals and other dates.
The next step is checking for the onboarding process. The best option is if it's an off-the-shelf solution that you are able to go live and begin operating in a few weeks' time. Be aware that long deployment cycles are no longer tenable.
7. Will the private and sensitive information be secure?
Not the least the security of data is of crucial importance. Because contracts contain highly confidential and sensitive data It is imperative to secure them from unauthorized access in order to earn the respect of your group whether that be your partners, vendors , or even customers. Additionally, the growing cybersecurity threats and cyber attacks can expose businesses to risk of potential legal or financial liability as well as brand and brand. If you're planning to keep the trust of the most important business relationships you have be sure to confirm that the provider has not suffered any serious security violations.
Connect with our experts through email@example.com to find out more about the Vuram Contract Management Solution.