cloud-based contract management system

More than 80% of businesses operations are managed by contracts. Contracts are a fundamental part of every company. No matter if you're a new startup or an enterprise with a significant size, chances are you will manage hundreds of contracts . These include partnership agreements non-disclosure agreements general employment contracts equipment and property contracts The list of contracts is endless. How well are you managing them? Do your operations rely on paper or spreadsheets as well as other traditional systems? Have you thought about moving to contract management systems? If so, this article is for.

contract management

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

software solutions contract management tools

Does the software contain AI capabilities?

contract life cycle management

With the sheer volume of contractsto manage, maintaining uniformity in managing contracts, as well as extracting the essential information is a huge challenge. There may not be a standard way to organize contract databases. Think about it, your business is home to many procuring contracts that have various renewal dates as well as renegotiation clauses. A team of workers may be required to dedicate hours investigating, reviewing and documenting the data to ensure there aren't any opportunities left unnoticed. Instead, if you go on an AI powered contract management software, the job can be completed in minutes. Thanks to Doc.AI capabilities, data like the title of the contract, the date of renewal negotiations terms, and renewal dates can be extracted. This makes it easy for the review, approval and sign-off process.

software contract management

And that's not all about it. Additionally, advanced contract management systems equipped with AI capabilities can help review contracts, compare clauses, and categorize contracts based on the type of clauses. AI-enabled CMS will assist with keeping up with changing laws. NLP analyzes every document and identifies the risks 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 difficult things to do. How difficult could be to prepare documents with similar clauses including terms and condition, vocabulary, and virtually identical content hundreds of times. This is why your CMS should be able to provide templates and clause libraries for many areas. When you use these templates, that have been approved by your editorial and legal teams, you can quickly draft contracts without any defects in language. Furthermore, a feature to standardize and centralize contracts gives you an all-round best contract management software view of the contract documents to look over the contract's history using customizable filters. You can also co-work with colleagues on how to read as well as edit and archive.

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

The saving numbers are the most convincing factors that will help you make the right decision whether to spend money on a contract administration program or not. A study by Goldman Sachs concluded that an automated contract management system can make negotiations more efficient by 50 %, decrease payment errors by 75 to 90% percent, reduce the cost to manage contracts by 10-30 percent and cut the headcount needed for contract management by between 10 and 20 percent. Indeed, managing contracts actually can be a very cost-effective option, when it is used correctly.

Ideally, you need to take into account things like the amount of time in audits and tracking renewal dates reduction in contract disputes and new opportunities that reduce the cycle of sales.

Can the solution be made customizable?

The majority of providers in the market claims to provide an answer that is customized to meet the needs of each organization. But is that true? Instead of spending hundreds of dollars for customizing, you should first understand the workflow, crucial processes, improvements needed, and look into options by asking more specific questions.

A good example is: in a typical contract management workflow where the writer writes the documents and the system processes it, it automatically sends the document to the person who approves. This is not the only attribute, a further customization can be a notification via email containing the document link sent to the person who approves. It should also be compatible or work on every device, including smartphones tablets and laptops.

At the same time highly customizable software could cause a lot of hassle and be complicated to operate, and its simplicity could end up being too little. It's therefore a sensible idea to examine the benefits and complexity of the individuals who will utilize the software and then choose the most appropriate customization.

What are some of the unique features or highlights that can speed up manual processes?

When using a software for managing contracts, they are saved in a secure, centrally located and searchable repository , with user-based access. This allows maximum compliance and large-scale reports. For instance, contracts can be easily traceable , and the process of reviewing and signing can be automated with e-signatures. Another instance would be metrics and analytics. To discover information about the time it took negotiations, contract participants are able to quickly identify the bottlenecks, determine the number of iterations and prepare comprehensive reports. It will also help by adding clause libraries, in getting insight on the performance history and reducing the contract cycle times.

Another feature worth looking for are contract redlining or editing. Redlining is the process of highlighting the text in order to mark changes, additions deleted, approvals and rejections. This is a useful feature particularly when two or three people would like to work on the same document collaboratively. It allows for greater flexibility while reviewing and negotiating contracts.

How simple is it to use and deploy?

A contract management software which has a simple interface that is easy to use will be loved by your end customers. To get the most benefit, while you're deploying, be sure to connect it to current systems that cut down on the need to move between platforms. For instance, integrating CRM with the latest contract software could aid sales professionals to automate transfer customer information, build contracts , and then route them to approval, in addition to having control over all the expirations, renewals and other important dates.

After that, check for the process of onboarding. Ideal if it's something that is available out of the box so that you are able to take off and get operational within a couple of weeks' time. Remember that long deployment periods are no longer sustainable.

7. What will the security of the data and the private information be secure?

Not the least the security of data is of vital importance. As contracts contain highly confidential and sensitive data it is essential to protect them from unauthorized access . This is to earn the trust of the people you trust such as partners vendors or clients. In addition, the increase of threat of cyberattacks and cyber threats can expose businesses to the possibility of legal insolvencies, financial and brand risks. If you're looking keeping the trust of your business partners Make sure the service provider hasn't been the victim of serious security hacks.

Get in touch with our experts via [email protected] to find out more about the Vuram Contract Management Solution.