A sound contract management system requires executing standard best practices at all levels of an organization and making sure that the contract management process is complied with.
Enterprise contract management software allows companies to improve business outcomes through automated contract management processes. The right platform can reduce risk, speed up business and optimize results. Good contract management transforms core operations to deliver true value when done at scale.
Here are some practical ways to utilize contract lifecycle management software to optimize your business.
Standardize Contract Creation
Effective contract management can lead to more efficient workflows. The legal department of your organization can accomplish remarkable outcomes by standardizing as much contract language as possible. For a large section of businesses, a standard set of terms and legal language applies to a large subset of contracts which enables general counsel to significantly decrease review time and concentrate on the more important sections specific to the contract being discussed.
Set Contract Management KPIs
Careful articulation of contract management KPIs offers a more transparent set of goals for the entire organization. It’s easier for department leaders to develop practices that generate results when they know what outcomes to aim for. It is also possible that unmet KPIs may uncover hidden leaking costs or productivity issues that were harder to spot without a standard benchmark.
Track Contract Approval Time
Simplifying the contract approval process helps the organization in more ways than one. The organization benefits from receiving contracted goods and services quicker than usual which saves cost and hassle. Also, a shorter cycle from initial conversations to a more finalized agreement contributes toward a positive relationship by adding convenience on both sides. Finally, organizations with a quick turnaround may have an easier time seizing opportunities.
Reduce cost & improve bottom line
Cost saving is one of the top expectations organizations have from their contract management team. An informed negotiation, lower occurrence of auto-renewal and better supervision of contract performance and can save costs. You need to make financial metrics a mandatory part of routine contract management reviews to compare contract performance with the organization’s budget expectations.
Final thought –
Contract terms are often not completely enforced causing revenue leakage and inefficiency. An enterprise requires continuous reporting and advanced analytics to ensure that a contract is fully enforced. To offer real-time insights into contract performance, you need to choose a CLM that can match contract terms to real-world metrics. A CLM system should also be customizable based on the end user’s needs. The Volody Contract Management platform features all these origination, risk management, and administration features—and more. To learn more about how Volody can transform contracting for your business, book a personalized demo here.