In the previous blog we discussed the spokes in managing contracts effectively, that the success of procurement largely depends on how efficiently the contracts are managed.
Let us now discuss step 1 in managing contracts efficiently – AUTOMATE CONTRACT CREATION
Contracts typically have routine clauses and terms & conditions depending on the geographies. The legal team hence should be spending more time reviewing other critical issues rather than looking into routine clauses.
The time taken by legal team to review the contracts and the exposure to risk can be reduced by
- Defining and maintaining a contract template and clause library that is customized as per geographies
- Defining mandatory and non-mandatory clauses
- Standardizing the contract authoring process
- Constantly updating the clauses to ensure information is relevant
- Ensuring access to relevant stakeholders to update the clauses/templates
Stay tuned to know about step 2 in effective contract management series.
For further reading, click on the download button below to access the white paper-5 Steps to Realizing Value from Contract Lifecycle Management
Learn More: Zycus iContract Solution
