cloud-based contract management system

Around 80% or more of the business operations are managed by contracts. Contracts are an essential part of every company. You may be a startup or a large corporation most likely, you'll be juggling hundreds of agreements like partnership agreements, non-disclosure agreements general employment contracts, property and equipment contracts the list goes on. What is your strategy for managing these contracts? Do your operations rely on paper or spreadsheets as well as other traditional systems? Have you thought about shifting to contracts management software? If yes, then this article is for you.

contract management

Before investing in a contract management system, be sure to study these seven points to avoid costly mistakes.

software solutions contract management tools

Does the software include AI capabilities?

contract life cycle management

With the sheer number of contractsin the market, maintaining consistency in managing contracts and pulling out essential information pose huge challenges. Some organizations may not have a uniform method for organizing contract databases. Imagine that your business has a large number of procurement contracts that have varying renewal dates and renegotiation conditions. A team of personnel could be required to spend hours looking over, analyzing and tracking the data to make sure that every opportunity is not lost. Instead, if you go for an A.I.-powered management tool, the task can be accomplished in a matter of minutes. Through Doc.AI capabilities, important information such as contracts' titles, renewal dates or negotiation conditions can be extracted. This makes it simpler for review, approvals and signing offs.

software contract management

And that's not even the best part of it. Furthermore, advanced contract management systems equipped with AI capabilities can assist in reviewing contracts, examine clauses and clauses and also classify contracts according to the type of clauses. AI-enabled CMS can aid in staying in line with the evolving 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

Contracts are among the most frustrating tasks. You can imagine just how laborious software solutions contract management tools it would be to prepare documents with similar clauses along with terms and conditions terminologies, and even the same content a number of times. That's why your CMS should have templates that are easy to use and clause libraries in several areas. By using these templates that have been pre-approved by your legal and editorial team, you can easily create contracts that are free of defects in language. A further feature that allows you to standardize and centralize contracts will give you an all-round view of the contracts . You can trace the contracts with filters that can be customized and interact with peers to discuss or edit the contract and then save it.

What's the potential ROI? How much could my company reduce costs?

The savings numbers are the major factors in helping you take the final decision whether to put money into a contract management tool or not. A study conducted by Goldman Sachs concluded that an automated contract management system could make negotiations more efficient by 50 percent, reduce payment mistakes by 75 to 90 percent, reduce the cost in managing contracts by 10 to 30 percent and reduce the number of employees required for contract management by 10 to 20 percent. Indeed, contract administration actually can be a very cost-effective choice, if it is chosen properly.

It is recommended to consider factors such as the time spent on audits and monitoring renewal dates, reduced disputes with contracts and creation of new business opportunities or a shorter sales cycle.

Is the solution adaptable?

Nearly every company in the market claims to provide solutions that are tailored to the specific requirements of every organization. What if that isn't the case? Instead of wasting money in customization, be specific about your workflow, processes that are crucial or improvements required, and take a look at options with more precise questions.

As an example: In a typical workflow for managing contracts where the person who drafts the documents the system will automatically route the document to the person who approves. But, without limiting this basic feature, a customization could be an email notification containing the document link sent to the approver. It should also be compatible or work with all devices, including smartphones, tablets and desktops.

While at the same time highly customizable software can also mean cumbersome and complex to use. Moreover, the ease of use may also prove too little. So, it's always a great idea to think about how the software works and the capabilities of the individuals who will use the software and then determine how you can customize it.

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

A contract management software system stores contracts saved in a central, secure and searchable repository , with user-based access. This allows the best compliance and large-scale reports. In particular, contracts could be easily tracked and the review and signing process is automated by e-signatures. Another example could be the use of metrics as well as analytics. To extract information on how long it took for the negotiation of a contract will be able to analyze areas of contention, count the number of iterations and then create detailed reports. It will also help in incorporating clause libraries, gaining insights on the performance history and reducing the contract cycle times.

Another key feature to look at is the redlining of contracts or editing. Redlining is the act of highlighting text to show modifications, additions deletions, approvals or rejections. This feature is helpful, especially for situations where more than one person need to work on identical document in a collaborative manner. It allows for greater flexibility when reviewing andnegotiating contracts.

How simple is it to install and use?

A contract management program that is user-friendly with simple-to-use features is sure to be appreciated by your customers. To achieve maximum benefit, when deploying, you should integrate it with existing systems that reduce the time required to switch from one platform to another. In this case, integrating CRM into the latest contract software could assist sales representatives to automate transfer customer information, build agreements and direct them to approvals, in addition to being in charge of the expirations, renewals and other important dates.

Following that, you should look for the onboarding process. Great if it is an in-box solution, so that you are able to start to go live and be operational within a short time. Do not forget that lengthy deployment cycles are no longer sustainable.

7. How will your private information be safe?

In the last, but not least secure data storage is of absolute importance. Since contracts are highly confidential and sensitive data need to be shielded from unauthorized access . This is to earn the trust of the people you trust including your partners, vendors , or even customers. In addition, the increase of cyberattacks and malicious threats are making companies susceptible to risks of potential legal and financial liabilities as well as brand liability. If you're trying to protect the trust and confidence of your important business relationships Check to make sure that your provider has not suffered any serious security incidents.

Contact our experts at [email protected] to learn more about the Vuram Contract Management Solution.