Why Businesses Can Benefit From Integrating Smart Contract Management Solutions
Contracts are the backbone of business and since they are so integral to almost everything your company does, you need an efficient way to handle these important documents. This is where contract management solutions come in. These business tools allow you to make every step of your contract workflow more smooth, so you can maximize your contract benefits.
What are contract management solutions?
Contract management software, also known as CMS, gives legal, sales, procurement, and contract administration teams a set of tools to effectively handle their management process from start to finish. Organizations that integrate CMS into their practice benefit by automating and accelerating contract creation, negotiation, approval, and monitoring. Overall, they mitigate risks while boosting contract velocity on a secure platform.
Why use contract management software solutions?
CMS is an invaluable tool for modern businesses looking to maximize the performance of each of their contracts. Utilizing an automated solution allows you to streamline your management process by automating and simplifying virtually every workflow through smart tools and features. You can also consult a trusted team like Parley Pro for contract management solutions.
Here are some of the ways companies can benefit from integrating a contract management platform into their operations:
- Minimize the risk involved with business deals
- Securely store contract data
- Customized contracts using a template library
- Oversight of contract information
- Remain compliant with full audit trails
How CMS streamlines each stage of contracting
With the increased complexity and uncertainty of modern business agreements, contract management software is more useful than ever before. When you utilize contract automation, your team will be equipped to efficiently handle any challenge that the contract workflow throws at them.
1. Contract drafting & creation
A contract management platform makes the contract creation process a breeze. Since most platforms include a library of advanced templates and clauses, you can automatically assemble agreements based on criteria such as region, services, products, or price terms. This streamlined creation process enables faster deal closures and significantly reduces the cost of legal operations.
2. Contract collaboration
With many companies moving their operations online, a platform with advanced collaboration capabilities can be an invaluable business asset. Implementing a CMS makes collaboration easy with features such as version control, document commenting, and change tracking. With these tools, you can be sure that everyone’s voice is heard, and every change is tracked in an organized manner.
3. Counterparties contract negotiation
By utilizing cloud-based contract management solutions, every stakeholder can access the document at any time and from any location, making the negotiation process much quicker. Additionally, smart redlining and change tracking make it simple to see any changes made to the agreement. This means that you can spend less time coordinating and more time negotiating the best deal possible for your business.
4. Contract signing
It can be difficult to sign and finalize agreements when working remotely or with other companies in different countries, which is why using eSignatures to virtually sign agreements is an effective solution. When you streamline the agreement process using eSignatures, you will waste less valuable time attempting to meet with the counterparty to finalize the contract.
5. Contract monitoring
When companies track their contracts through excel sheets, or even worse, in their email inbox, it’s nearly impossible for them to monitor the performance and compliance of their agreements properly. However, when you integrate a CMS with monitoring and tracking capabilities, you can automate the task. You can track KPIs, compliance, and even important deadlines all on a simple platform.
6. Contract renewal
Missing contract renewal deadlines can be detrimental to your business deals because you may get stuck in agreements that are not beneficial for another term or miss out on the chance to extend an advantageous deal. You can simplify the renewal process through advanced notifications, contract monitoring, and smart templates and never miss a deadline again.
The first steps of implementing a contract management solution (CMS)
Many legal teams understand the benefits of adopting contract management solutions to simplify workflows. However, many don’t know how to start the implementation process.
Here are some easy steps to begin reaping the benefits of a smart contract management platform:
- Review the steps of your current contract management process
What does your current CLM process look like? To understand this you must map out the steps of what a typical contract lifecycle looks like in your company and what parties are responsible for each task. Once you understand the intricacies of your contract management process, you can then see how you can benefit from automation.
- Find a contract lifecycle management solution that suits your company’s unique needs
For an automated platform to optimally benefit your business’s contracting process it must include all the features that you need, which you will discover when you map out your current management plan. It’s a good idea to shop around and browse the features that each software provider offers to find the best solution for your challenges and needs.
- Ensure that each team member thoroughly understands the platform before onboarding
The fastest way to train your team is by designating a leader of each department who will answer questions and ensure that everyone understands the platform. Once your team is trained on how to use the CMS correctly, you can begin integrating it into your regular process.
- Get onboarding support from a contract management professional if needed
Finally, many CMS providers offer the option for you to get support from one of their professionals when onboarding their software. A contract management professional can be a useful resource for answering any questions and teaching you the ins and outs of their platform so you can maximize its benefits.
