cloud-based contract management system
More than 80% of businesses operations are managed by contracts. Contracts are an essential part of every company. When you are a start-up or a major corporation You're likely to manage hundreds of contracts , such as partnership agreements, non-disclosure agreements General Employment Contracts, equipment and property contracts The list is endless. How effective are you managing these contracts? Do you rely on papers, spreadsheets and other legacy systems? Are you thinking about changing to contract management systems? If so, this article is perfect for you.
Before investing in the contract management system make sure you analyze these seven questions to avoid common pitfalls.
software solutions contract management tools
Does your software have AI capabilities?
contract life cycle management
Due to the huge volume of contracts, ensuring consistency while managing contracts and collecting essential data is the biggest challenge. The companies may not have standard method of organizing their contract databases. You may have many contract types with different renewal dates and renegotiation conditions. Representatives from your team might be required to take hours in tracing, reviewing and recording the data to make sure that every opportunity is not lost. Instead, if you go for an A.I.-powered management tool, the job can be accomplished in a matter of minutes. With Doc.AI capabilities, data such as contract titles, renewal dates as well as negotiation terms can be extracted. This allows for easier reviews, sign-offs, and approvals.
software contract management
However, that's just the beginning of it. Furthermore, advanced contract management systems that incorporate AI capabilities can help review contracts, analyze clauses and sort contracts according to the kind of clauses. AI-enabled CMS can also help in being in compliance with the ever-changing regulations. NLP analyses every document and identifies the risks and opportunities.
solution provider contract management software
Are there standard templates for contract drafting and editing?
best contract management software
Drafting contracts is one of the most frustrating tasks. It is difficult to imagine how complicated it could be to create documents with similar clauses such as terms and conditions phrases, and the exact same information a couple of times. That's why your CMS should support easy-to-use templates and clause libraries that cover different areas. These templates, when approved by your editorial and legal teams, it is easy to create contracts that are free of errors in the language. Furthermore, a feature to centralize and standardize the contract means you will have 360-degree view of the contract to track the contract's history using customizable filters. You can also work with colleagues to review as well as edit and archive.
What's the chance of a return on investment? What can my company reduce costs?
Savings figures are the largest factor in helping you make the decision whether you should decide to invest in a contractual management software or not. A study by Goldman Sachs concluded that an automated contract management system could make negotiations more efficient by 50 percent, reduce the amount of payment error by 75-90 percent, lower the cost involved in managing contracts software contract management between 10 and 30 percent and cut the number of employees needed to manage contracts of 10 to 20 percent. Indeed, managing contracts is indeed a cost-effective option, if you choose it correctly.
Ideally, you must consider factors like the time spent in audits and tracking renewal dates, decrease in disputes over contracts and the creation of new opportunities, reduction in sales cycle.
Is the solution adaptable?
Each and every company on this market claim to offer a service that is specifically designed to the specific requirements of every organization. What if that isn't the case? Instead of spending hundreds of dollars on customization, thoroughly describe the workflowprocess, essential processes or improvements required, and investigate options by asking precise questions.
For instance: in a typical workflow for managing contracts where the person who drafts the documents it is routed by the system the document to the person who approves. But, without limiting this basic function, a modification could include an email notification with the link to the document sent to the approver. And the link should support or work with all devices- smartphone, tablets as well as desktops.
But highly customizable software could be a hassle to use, and the simplicity might be insufficient. Hence, it's always a good idea to take a look at the trade-offs and sophistication of the team who will be using the software and then make a decision on how to tailor it.
What are some of the notable features that can speed up manual processes?
With a management tool for contracts, the contracts can be stored in a centralized, secure and searchable repository that has user-based access. This allows for maximum compliance and extensive reports. For instance, contracts can be traced easily and the procedure of reviewing and signing can be automated through electronic signatures. Another instance would be measurement and analytics. To get information on the time it took signing a contract. Users can easily look at obstructions, as well as the number that iterations were made and then prepare detailed reports. This will assist when adding clause libraries, in getting insight into past performance, and increasing the speed of contract negotiation.
Another feature worth looking for are contract redlining, also known as editing. Redlining highlights the text to signal changes, additions of deletions, approvals, and rejections. This is a useful feature, especially when two or more people wish to work on the identical document in a collaborative manner. It provides a greater flexibility while reviewing and negotiating contracts.
It is easy to use and deploy?
A contract management tool which has a simple interface, easy-to-use features will be adored by your customers. To achieve maximum benefit, when deploying, you should integrate it with existing systems which reduces the time required to switch between platforms. Examples, for example, integrating CRM to the new contract software will assist sales representatives to automate supply customer data, make contracts and send them out for approval, while also being in charge of the expirations, renewals and other dates.
Following that, you should look for the onboarding process. The best option is if it's an in-box solution, so that you are able to launch and start operating in a few weeks' time. Be aware that long deployment cycles are no longer sustainable.
7. What will the security of the data and the private information be secure?
Last but not least most importantly, data security is the utmost importance. As contracts contain highly confidential and sensitive information They must be secured against unauthorized access to ensure the trust of your circle whether they are partners, vendors or clients. In addition, the growing number of cyber attacks and malicious threats can expose businesses to danger of legal claims, financial or brand-related liabilities. If you're looking to keep the trust of the most important business relationships you have make sure that the company hasn't suffered any serious security hacks.
Connect with our experts through email@example.com to find out how Vuram can help you with your Contract Management Solution.