World Commerce and Contracting calculated that poor contract management practices cost businesses an average of 9% of revenues each year. Irrespective of business type or work style, organizations that need to unlock value and provide superior customer experience have one place to investigate ‘contract management.
A bulk of litigation has been stemming from contract failure, and hence, contract management remains one of the biggest concerns facing global organizations today. The advent of technology has elevated contract management software as a partner to leverage data, manage risk, and boost cost savings. Its scope extends further beyond to prevent revenue leakage by efficiently organizing and categorizing contracts. This, in turn, enables a manifold increase in process compliance, with well-streamlined administration and management of contracts. And here lies the key to unlocking the underlying cause for revenue loss and increasing productivity.
Today’s contract management is all about having a sophisticated but straightforward architecture that works for you, aligns with your KPIs, trains the stakeholders, and derives insights and intelligence from the uploaded contracts. Primarily, five cornerstones form the core of a contract management software enabling productivity gains, revenue assurance, risk mitigation, cost savings, assured compliance, proactive management, and optimum use of resources.
Gartner has predicted that by 2024, the manual effort for contract review will be reduced by 50% due to the adoption of AI-based contract analytics solutions.
A holistic view of all contractual data and information with dates, milestones, deliverables, terms, conditions, and stakeholders equips you with instant insights to bid, negotiate and renegotiate. Furthermore, you get to save time and effort of resources in tracking and retrieving data points for such contractual discussions. Thus, the transparency the system offers is undoubtedly a principal benefit that helps organizations thrive in a data-driven economy.
With an in-built contract hierarchy, the CLM software notifies the percentage of your contracts that are compliant, non-compliant, and respective turnaround times. Its smart functioning goes a step further to collate data from financial, sales, and procurement systems, helping organizations to stay alert on compliance, predict business developments, and handle risks proactively.
A robust contract management system built with the right contract metadata can swiftly reach access to a particular case and narrow down of a case-specific to hearing and lawyer involved. Contract data organized as per categories and uploaded to the system enables effortless retrieval of pertinent data promptly. Late payments, renewal dues, redundant contracts, and lifetime contracts can be found within minutes. This empowers you to initiate the due course of actions to avert revenue loss.
Creating a cadence and standard operating procedures within the contract family is a big boon for lawyers. This gives them the flexibility to get more done in less time, as all they must do is resort to the template, check, and modify to create contracts. Setting standards for each category of contracts reduces risk, makes them manageable, and improves the bottom line.
A picture is worth a thousand words couldn’t be truer when it comes to contract management software. Viewing notifications, alerts, and other related contract reminders on a dashboard that pictorially represents contract data status is a huge relief. It is easier to decipher the trends, patterns, and potential problems in image format than in content. Insights from even complex contracts can be viewed as an infographic in a fraction of minutes, enabling the stakeholders to view and act.
Cenza provides end-to-end contract management support and services, across the whole contract lifecycle, from negotiation and revision to due diligence review. We have the tools, technology, and workflow expertise to help you rationalize the contracting process and enhance data management through all phases of business activity.
Get in touch with us at firstname.lastname@example.org for your contract management needs.