cloud-based contract management system

Nearly 80% of business operations are managed by contracts. Contracts make up a significant part of any business. Even if yours is a small business or a massive corporation probably you'll have to deal with a multitude of contracts such as partnership agreements non-disclosure agreements, general employment contracts, equipment and property agreements The list is innumerable. How effective are you managing these contracts? Do you rely on paper sheets, spreadsheets and other outdated systems? Have you thought about moving to contracts management software? If yes, then this article is for you.

contract management

Before you invest in a contract management software, make sure you look over these seven questions to avoid costly mistakes.

software solutions contract management tools

Does the software come with AI capabilities?

contract life cycle management

With the sheer volume of contracts, ensuring consistency in managing contracts, as well as extracting the essential information is huge challenges. Businesses may not have uniform method for organizing contract databases. You may have several procurement contracts with differing renew dates and renegotiation agreements. A team of representatives may be required to dedicate hours studying, reviewing, and tracking the data to ensure there aren't any opportunities left unnoticed. Instead, if you go to use an automated contract system that is powered by AI, this task can be completed in mere minutes. Through Doc.AI capabilities, data such as the title of the contract, the date of renewal contract terms, and renewal dates are extracted. This makes it simpler for reviews, sign-offs, and approvals.

software contract management

This isn't all of it. Advanced contract management systems with AI capabilities could help review contracts, compare clauses, and classify contracts based on the type of clauses. AI-powered CMS can assist in maintaining compliance with evolving regulations. 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

Drafting contracts is one of the most tedious things. It is difficult to imagine how complicated it could be to prepare documents with similar clauses including terms and clauses, technical terms, and almost exactly the same content numerous of times. This is why your CMS must have easy-to-use templates and clause libraries that cover different fields. Utilizing these templates, approved by your legal and editorial teams, it is possible to swiftly write contracts without errors in the language. Additionally, a plan to centralize and standardize contracts will give you 360-degree views of your contracts. You can follow your contracts using flexible filters. Furthermore, you are able to collaborate with other colleagues to review or edit the contract and then save it.

What's the potential ROI? What's the cost my organization can save?

The savings numbers are biggest persuaders to help you make the right decision whether to consider investing in a contract management system or not. A study by Goldman Sachs concluded that an automated system for managing contracts can accelerate negotiations by fifty percent, reduce payments mistakes by 75 to 90 percent, cut the cost to manage contracts by between 10 and 30 percent and reduce the number of employees required for contract management in between 10-20 percent. It is true that contract management is a viable cost-effective option, when it is used correctly.

Ideally, you need to take into account aspects such as the amount of time you spend in audits and monitoring renewal dates, less contract disputes creating new opportunities reduced sales cycle.

Can you customize the solution?

Almost every provider in business claims to offer the best solution to meet the needs of every company. What if that isn't the case? Instead of spending huge sums on customization, thoroughly describe the workflow, critical processes needs to be modified, look into options by asking more precise questions.

For instance: in a typical workflow for managing contracts in which the writer creates the documents the system routes the document to the person who approves. This is not the only attribute, a further customization could include an email notification with the document's link to the approver. This link should be compatible or function on every device - smartphones, tablets and laptops.

While at the same time the software's high degree of customization could also be difficult and complicated to use, and the simplicity can also mean too much. Hence, it's always a smart idea to evaluate the advantages and the sophistication of the team who will use the software and then device on customization.

What are some particular features or features that can be used to reduce manual procedures?

With a management tool for contracts, the contracts can be kept in a central, secure and searchable database that allows users to have access. This allows the best compliance and comprehensive reporting. For instance, contracts can be traced easily and the process of reviewing and signing can be made automated using electronic signatures. A different example would be statistics and analysis. To find out data on the time it took the negotiation of a contract can quickly analyze gaps, analyze the number of iterations as well as create comprehensive reports. This will assist in the addition of clause libraries, and gain insight into the historical performance and decreasing the time to complete a contract.

Another important feature to look at is the redlining of contracts, also known as editing. Redlining is when the text is highlighted to signify changes, additions, deletions, approvals and rejections. This is a useful feature, especially when more than two people would like to work on the identical document in a collaborative manner. It gives you more possibility of reviewing and discussing contracts.

It is easy to use and deploy?

A contract management software that features an intuitive interface, easy-to-use features will be loved by your end users. To reap maximum benefits, in the process of deploying, it is best to connect it to existing systems that can reduce the times spent moving from one platform to the next. In this case, integrating CRM into the latest contract software will assist sales personnel to feed customer information, create contracts , and distribute them to approvals, in addition to keeping track of the expirations, renewals and other dates.

Following that, you should look for the process of onboarding. Ideal if it's an open-source solution so that you can move live and go into operation in a few weeks' time. contract life cycle management Don't forget that long deployment times are not viable any longer.

7. Will the private and sensitive information be secure?

Last but not the least secure data storage is of vital importance. Since contracts are highly confidential and sensitive information it is essential to protect them from unauthorised access in order to earn the confidence of your friends, be it partners, vendors or customers. Additionally, the increase in cyber-attacks and threats make companies more vulnerable to the possibility of legal fiscal, brand, and financial obligations. If you are about to keep the trust of your most important business relationships, double check that the provider hasn't suffered any significant data compromises.

Connect with our experts at ask@vuram.com to find out more details regarding Vuram's Contract Management Solution.