The point of contention in this article is to understand if a contract management software can drown your business? And we say, yes, the absence of a contract management software can be very detrimental to your business.
In an organization, sales and marketing contribute significantly to the bottom line. But depending on the administration of the contract management software, the impact is variable.
Big organizations have many teams comprising of legal and contracting professionals, procurement contract managers, and so on. In addition to these teams, there is often the need for other employees to deal with contracts on a day to day basis – For example, a marketing person, who might not have the legal authority or knowledge about contractual clauses would be talking to vendors and executing contracts with them. Now, this, of course, gets reviewed by a legal professional within the organization before the contract is signed. Hence, one can observe that people from multiple departments contribute to an organization’s contract administration, directly or indirectly.
Learn More: Contract Lifecycle Management Software;
Contract administration involves many steps across hierarchies and departments and not just legal professionals. Such dependency leads to a lot of manual actions resulting in stagnated contracting cycles, human error, and higher risk.
Contract visibility includes the ability to track changes and amendments associated with each contract and monitor contract utilization. Legal is not the only stakeholder requiring such visibility.
With multiple stakeholders working on contracts, there is a lot of outdated legal language and a high volume of non-standard terms being in circulation across the organization. Apart from legal professionals, teams of paralegals and contract managers often use inconsistent legal language. There has to be a library for standard and updated legal content to maintain consistency across the organization.
Below we discuss the prerequisites of contract administration and the key to contract process optimization, visibility, and management.
Also, various technology providers provide comprehensive contract management software applications. Forrester evaluated 14 most significant vendors on 28 critical parameters in its report named The Forrester Wave™: Contract Life-Cycle Management, Q3 2016. The report shows how each provider measures up and helps decision-makers make the right choice from three dimensions: buy-side dominant, sell-side dominant, and all contract life-cycle management.
Now that we have discussed the challenges that can drown your organization’s contract process and established the importance of involving teams apart from legal professionals, let us move ahead to discuss the key benefits of a contract management software.
Forrester evaluated 14 most significant vendors on 28 critical parameters in its report named The Forrester Wave™: Contract Life-Cycle Management, Q3 2016. The report shows how each provider measures up and helps decision-makers make the right choice from three dimensions: buy-side dominant, sell-side dominant, and all contract life-cycle management.
Finally, with the evolving business environment and increasing communication with suppliers, it has become necessary for organizations to manage contracts effectively. Manual contract management process has many challenges, as discussed in the earlier blog. Furthermore, to avoid them, organizations can leverage technology and work smarter.
Over the past two years, we've seen how supply chains are constantly changing and facing…
Invoicing is one of the most critical aspects of doing business - how you get…
Almost every business faces the challenge of launching new products at some point. For procurement…
The last two years have been turbulent for the manufacturing industry. Broken supply chains, unavailability…
Join us at Procurement Summit 2022 Zycus team is more than excited to meet all of…