Managing contracts is frequently seen as a formality between two parties beginning a contractual partnership. However, the success of any company partnership depends on efficient contract management procedures.
You are in charge of creating the contract as well as other paperwork as the contract manager, which is one of the many duties you have. To ensure that all contract management procedures are recorded, and precisely detailed, you should gradually create a checklist of activities.
Several crucial elements must be implemented for your company’s contract lifecycle management to improve and reach a high maturity level significantly. According to https://www.contractsafe.com/, implementing an online-based contract management software to automate your contract management is an essential instrument that can significantly improve your contract management lifecycle.
Here are four effective ways to leverage contract management to benefit your business.
4 Effective Ways to Leverage Contract Management to Benefit Your Business
Create Agreements Using Template and Clause Libraries
Creating your template and clause libraries straight to the system is another crucial approach to use in the pre-award stage of CLM. All your approved and standardized legal formats and languages will be centrally located and easily available to those who require them.
Using these template and clause libraries, you can then leverage business principles to construct your contracts. This enables you to create negotiation-ready contracts much more quickly and guarantees that you and the team consistently use the most current and accurate language in your contracts. Another good illustration of how Contract Logix’s management software reduces risk, boosts compliance and speeds up business completion.
Securing and Centralizing Your Contract Data
Several departments and people can work on a contract, which might be problematic if the contracts are dispersed throughout the company. It’s dangerous to have printouts of a contract scattered around.
To organize all your documents, contract data, and contract data in a safe and cloud-based repository, you must use contract management software. This will allow several significant advantages, including:
- Searchability: With the help of a data-driven service such as Contract Logix, you’ll instantly search contract-related keywords and locate information.
- Security: With encryption, single sign-on, multi-factor authentication, features-based and roles-based permissions, and other capabilities, you can control access to your critical contract information.
- Analytics and Reporting: On top of that, a data-driven solution allows you to group, report, and filter all of your contracts based on any relationship you like, such as contact, company, contract type, etc. If you want to track KPIs and boost performance, you can create reports and use dashboards.
- Accessibility: Since all your contracts and data are stored in the cloud, anyone with the proper access rights can view it from any gadget.
Avoid Missed Obligations and Dates with Alerts
Any organization may face significant difficulties and run the danger of failing to keep track of and adhere to important deadlines, milestones, and other contractual responsibilities. As a result, utilizing automatic notifications is crucial to utilizing contract management software.
For instance, you might have an agreement with a supplier that automatically renews, but you’d prefer to review it three months before that date. You should also be aware of any potential 30-day termination period included in that contract. You can quickly automate the notifications and alerts related to important dates like those with Contract Logix.
The need to submit a quarterly report for a client as a Statement of Work (SOW) part or possibly a promise in a facility agreement to verify the maintenance schedule of specific equipment are two more duties for which you can automate notifications.
Automate Work Processes during the CLM Procedures
Not only do slow and ineffective processes cause problems, but they also expose a company to risk. What if a contract review or signing doesn’t go through the proper steps? Well, that’s where contract management software comes in. You should put automatic workflows into place to guarantee that your company’s policies are always followed when it comes to contract signatures, requests, approvals, and many more.
You may quickly and easily route tasks, contracts, reminders, and requests to the appropriate individuals via automated processes. For instance, you can easily create a drag-and-drop process using Contract Logix’s Visual Workflow Builder if you have a business rule requiring contracts exceeding a specific financial amount to be handed over to the CFO for approval.
It’s an easy yet incredibly efficient approach to do away with the risk and inefficiencies in routing contracts, whether manually or through email.
Final Word
Any company that enters into contracts needs contact management systems. Using the system yields risk reduction, increased compliance, and quicker business completion, all advantages.
Even with a solution, many companies cannot fully utilize or leverage contract management software. As a result, they affect the company’s obligation management, visibility, collaboration, security, and workflow.
With the methods highlighted in this post, you can effectively leverage contract management to ensure the smooth running of your business.