Contracts play a critical role in any multi-party transaction, documenting terms such as critical dates, pricing, external/internal party information and signatories. Losing visibility to your critical contracts and terms can lead to missed deadlines , penalties, overpayment for services, timely payments collection from external vendors and much more which has a high impact on your business operation and profit margin. It is essential for companies across all industries to better manage their contracts at an enterprise level. However, far too often multiple business units within an organization have their own drives/directories or other data stores where contracts are kept. This can lead to confusion, disarray and potential loss of critical information. Forward-thinking companies will smartly centralize their repositories with an efficient contract system that creates a single source of record for their enterprise-wide contracting needs and CMx perfectly follows this vision.
Only some companies worldwide manage their contracts and contract processes really good. It helps to maintain order and efficiency to this critical area. Contract System ranges from very simple database that allow companies to search and find their contracts and track information (such as contract expiration dates and deadlines) to contract lifecycle management (CLM) systems that attempt to automate the entire contract lifecycle, from the initial contract request through contract creation, signing, filing, and post-contract reporting. Some systems are primarily intended to support the procurement function, and others the sales contracting function, but increasingly these systems are being designed to handle all types of contracts.
While a simple contract database or contract repository may be enough for companies with only a small number of contracts to deal with, more fully featured CLM systems add significant features and functions to help manage what, for many companies, is an increasingly complex and critical area.
With more contract solutions being offered as a cloud hosted service (SaaS), the advantages of CLM systems are increasingly available even to smaller companies and law departments.
An integrated system that applies business rules to manage contracts of the enterprise on a worldwide basis, from request through negotiation to filing in a central repository, and that allows people and systems within the organization to access, analyze, and act on contract-related information to improve efficiency, consistency, reporting, and control.
1. Make contracting process efficient and improve contract cycle time
2. Eliminate overhead associated with contracts
3. Getting Contracts Done effectively is important to streamline consistency of contracts and contract processes across the organization for due diligence and pro-actively managing risks
4. Risk Mitigation and better control of risk and revenue recognition issues
5. Improve enterprise-wide visibility of contracts and related information – team members have access to the information they need
6. Eliminate redundant entry of information
7. Increased Vendor and Supplier Compliance
8. Increased Legal Compliance by using common contract drafting tool and consistent terms and conditions.
Legal compliance by effectively using Contract Management System
can provide quick Return On Investment for your company.All of the project teams can use the same system for managing contract documents and metadata in one place , standardizing and optimizing Contract Management tasks and activities.
9. Increased Spend Optimization.
10. Most importantly , life of contract managers , procurement managers , legal professional becomes easy since all are collaborating using the same tool throughout the organization.