Every business puts great importance on contracts. The contract binds partnership and agreement between two organizations or individuals. When there are more contracts that the organization manages, the harder it is to keep track of the records. In fact, being tasked to manage contracts is a challenging and demanding task. This is where contract management software comes into play. It may seem like ordinary software but it keeps things in check. It takes care of various tasks including structuring deals that are more profitable, recognizing revenue, re-negotiation and maintaining regulatory and operational compliance.
It is expected for an organization to effectively manage the entire life-cycle of a contract. Whatever agreement is stated on the contract that should not be breached by one error or mismanagement. Contract life-cycle management plays a huge role in this process. It ensures that the contract is properly structured and reviewed. In a nutshell, a contract dictates how things should work between the organization and its partner. With the help of contract management software, these gaps are filled in.
Contract life-cycle comprises various stages. In the event a problem occurs during each life-cycle stage, contract management software serves as an early intervention. It is inevitable to meet a few challenges in each stage but the most important thing for contract management to be successful is to determine what these challenges are. Once these challenges or problems are identified, it will be easier for an organization to distinguish the opportunities for improvement.
Contract management software has an important role in each stage. For example, the contract request considers efficiency as its number one problem. This involves slow cycle times that can be a huge deterrent to an organization’s progress. As a solution, the software will integrate systems designed to complement the organization’s line of business(LOB). This enables organizations to initiate contracts only within the applications they are already familiar with.
Another example is during the contract authoring stage. Organizations cannot always use the latest and standard language for new contracts. As a result, legal reviews become time-consuming as enforcing standards are already a difficult thing to do. With contract management software in the picture, contract experts will only use authoring tools they are comfortable with. The software can recognize this and will accommodate designs by employing the same format as the authoring tool. It allows users to simply drag and drop language from a library containing approved terms and clauses. It also contains instructions and guidelines so users will identify which terms and clauses work best for them.
Since the challenges of each stage are properly addressed, the process runs smoothly and efficiently. It benefits not only the organization but the users as well because they no longer have to adapt with the new technology from contract preparation until the last stage of contract management life-cycle. Contract management software is an essential tool for every organization that wants to ensure smooth and hassle-free transaction with their business partner, supplier etc. Regardless of the challenges each stage faces, the software serves as both prevention and cure.
Ncontracts has provide risk & vendor management software since 2008 to make it easy for banks & credit unions to assess, monitor & mitigate risk.