cloud-based contract management system

About 80% of commercial operations are governed by contracts. Contracts are a crucial part of any company. Even if yours is a small enterprise or a big corporation most likely, you'll manage hundreds of agreements like partnership agreements, non-disclosure agreements as well as general employment contracts. equipment and property agreements, the list is endless. What is your strategy for managing these contracts? Do you depend on paper or spreadsheets, as well as other outdated systems? Are you thinking about changing to contract management systems? If so, this article is for you.

contract management

Before you invest in a system for managing contracts, be sure to study these seven points to beware of the traps.

software solutions contract management tools

Does the software include AI capabilities?

contract life cycle management

With the sheer amount of contracts, ensuring uniformity in managing contracts, as well as pulling out essential information pose a huge challenge. Some organizations may not have a standard method of organizing their contract databases. For example, you have an abundance of procuring contracts that have various renew dates and renegotiation agreements. A group of employees will likely to be tasked with looking over, analyzing and tracking the information to ensure that the opportunity isn't missed. Instead, if you go for an AI-powered solution for contract management, the job can be accomplished in a matter of minutes. Through Doc.AI capabilities, data such as contract titles, renewal dates contract terms, and renewal dates are extracted. This makes it easier for reviewing, approvals, and sign-offs.

software contract management

However, that's just the beginning of it. In addition, advanced contract management systems that incorporate AI capabilities will help you review contracts, examine clauses and clauses and classify contracts based on the kind of clauses. AI-enabled CMS are also a great aid to maintaining compliance with evolving laws. NLP analyzes every document to highlight the threats and opportunities.

solution provider contract management software

Are there standard templates for contract edits and drafting?

best contract management software

The process of drafting contracts is among the most tedious things. Just imagine how hard it would be to write documents that contain similar clauses such as terms and conditions terminologies, and even identical content hundreds of times. This is why your CMS should be able to provide templates and clause libraries that cover different fields. By using these templates that have been pre-approved by your legal and editorial teams, you will be able to quickly draft contracts without any errors in the language. Plus, the ability to centralize and standardize contracts allows you to have contract life cycle management an overview of the contracts , allowing you to follow the contract's history using customizable filters. You can also collaborate with peers to review as well as edit and archive.

What's the ROI potential? What can my company save?

The saving numbers are the biggest persuaders to help you make the ultimate decision whether to make the investment in a management program or not. A study conducted by Goldman Sachs concluded that an automated contract management system can increase the speed of negotiations by 50 percent, lower payment errors by 75 to 90% percent, lower the cost of managing contracts by between 10 and 30 percent and reduce the staff required for contract management by 10-20 percent. It is true that contract management could be an effective cost-effective option, if chosen correctly.

Ideally, you need to take into account aspects such as the amount of time you spend on audits and monitoring renewal dates, decreasing disputes on contracts or new opportunities and a reduction in the sales cycle.

Does the solution have the ability to be adapted?

Nearly every service provider in industry claims to provide a solution that is tailored to the specific requirements of each organization. But is it always true? Instead, instead of spending a lot in customization, be specific about the workflow, critical processes as well as the improvements that are needed. then explore options with more specific questions.

For example: in the typical workflow for managing contracts once the contract manager drafts the documents the system will automatically route the document to the person who approves. If you don't want to stop at this basic functionality, a different approach could include an email with the document's link to the person who approves. And this link should support or be compatible with all devices- smartphones, tablets and laptops.

Yet it is possible that highly customizable software will become complicated and time-consuming to operate, and its simplicity may be insufficient. Hence, it's always a best practice to analyze the advantages and the sophistication of the staff that will be using the software , and take the necessary steps to make adjustments.

What are some of the specific features or highlights which can help reduce manual tasks?

Within a Contract Management System, contract documents are saved in a centralized, secure and searchable database with user-based access. This allows maximum compliance and comprehensive reports. In particular, contracts could be easily traceable , and the review and signing process could be automated by electronic signatures. Another example is statistics and analysis. To obtain information on how long it took for an agreement to be negotiated, customers can quickly look over problems, calculate the number of times it was necessary to iterate and produce comprehensive reports. It will also help in adding clause libraries, getting insights into past performance, and making the process more efficient and reduce the cycle times of the contract.

Another key feature to look towards is contract redlining or editing. Redlining is the act of highlighting text to show modifications, additions deletions, approvals and rejections. This function is beneficial, especially for situations where more than one person wish to work on the identical document in a collaborative manner. This allows more flexibility when reviewing and negotiating contracts.

What is the process to set up and use?

A contract management tool that offers a simple interface and user-friendly features will be appreciated by your customers. To obtain the maximum benefit when deploying the software, it is recommended to connect it to existing systems that will cut down on time spent on navigating from one platform to the next. By integrating CRM, the latest contract software will enable sales people to input customer information, generate contracts , and distribute them to approval, in addition to being in control of all the expirations, renewals and other dates.

The next step would be to check for the onboarding process. It is ideal if it's something that is available out of the box so that you can move live and go into operation in a few weeks' time. Don't forget that long deployment times are no longer feasible.

7. How will your private information be secure?

Not to be left out most importantly, data security is utmost importance. Since contracts are highly confidential and sensitive data that must be kept secure against unauthorized access to ensure the trust of your circle such as partners vendors , or even customers. In addition, the growing number of security threats and cyberattacks have made companies vulnerable to danger of legal branding, financial and legal liabilities. If you're about to protect the trust and confidence of the key business relationships with your company, double check that the supplier hasn't had any serious security or security breaches.

Contact our experts at ask@vuram.com to find out what Vuram has to offer in its Contract Management Solution.