Buy-side and sell-side contracts are some of the most common types of contracts businesses deal with daily. However, most people are still confused by the contents of each contract and what they mean for their business. Having a deeper understanding and knowing the difference between these contracts is imperative to draft stronger, compliant contracts and ensure organization-wide compliance.
Having a single source to manage these contracts can provide organizations with much-needed contract information and create a hassle-free contract management process. Read our blog to delve deeper into the differences between buy-side and sell-side contracts and learn how a smart contract management tool can give you total control over all your agreements.
What are buy-side contracts?
A buy-side contract is an arrangement to purchase services or goods from a seller in exchange for something of money or anything with value. Buy-side contracts are usually managed by the procurement department in a company.
Buy-side contracts can vary in nature depending on the size of the deal and how many documents are involved in the purchasing process. Low-value deals or recurring item contracts are simpler in nature and can be auto-drafted via standard templates using a smart contract management tool. Drafting via standard templates can expedite the contracting process and digitally executing these agreements can also facilitate stress-free collaboration. Procurement can use standard templates pre-approved by their legal department and smoothly negotiate with their counter-parties.
Advanced, high-ticket size deals (like RFPs), however, can be more complex as they involve numerous documents and require more back & forth between the negotiating parties. Using intelligent CLM tools with standard pre-approved templates can make drafting and modifying these complex buy-side contracts effortless while also streamlining the negotiating process between the counterparties.
What are sell-side contracts?
Sell-side contracts are contracts drafted for selling and delivering goods & services to interested buyers. These contracts are often managed by the sales teams and require quick drafting. A sell-side contract is one of the most important contracts as it is a revenue-generating agreement, therefore demanding careful monitoring and management from the legal team and various stakeholders involved.
Sell-side contracts put your company on the hook for many obligations and missing out on these obligations could be costly or negatively impact your company’s reputation. It is imperative to leverage a smart contract management solution to keep track of all these deliverables and obligations. Intelligent CLM tools can help you draft compliant risk-free contracts and have in-built reminder features that ensure that you never miss out on any milestones.
Unify buy-side and sell-side contracts with the Smart CLM tool
Contract Management tools have tremendously improved enterprise contracting operations and simplified negotiations across the board. These tools with smart features create a single truth for all your contracts and turn these static contracts into digital assets aiding your decision-making and transforming the way you interact with agreements.
AI-powered CLM software provides a single source to manage both buy-side and sell-side agreements. These tools can manage the complexities and differences of both these types of agreements while also expediting your sales cycle by 60%. Managing these contracts on one platform reduces redundancy and alleviates the burden on your sales, legal, procurement, and IT teams. Some other benefits of implementing a smart contract management tool include ➖
- Streamline and fast-track negotiation, redlining, and finalization
- Align your teams with the same data and make informed decisions
- Provide crucial metadata and meaningful insights
- Ensure organization-wide compliance with pre-approved templates
- Financial management of agreements and visibility into obligations and renewals
- Relationship management with customers and vendors
- Track purchases and buy-side contracts through the contract workflow
- Ensure all goods are received and paid for following the contract terms
- & many more
Drastically reduce spend leakage by maintaining complete visibility over all your obligations, discounts, rebate terms, and contract metadata. Eliminate billing errors with low-code configurable reminders from our CLM tool and mitigate compliance errors with smart AI features warning you of any possible contractual risks. Empower your teams with additional information to accurately forecast revenue, analyze contract performance, and meet organizational goals.
Volody’s enterprise-grade robust CLM solution
In our previous blog, we mentioned how cloud-based Contract management tools can transform your contracting operations and effectively draft pre-approved compliant contracts. Volody’s easy-to-use Contract Lifecycle Management (CLM) software can unify all your contracts on a single platform allowing you to digitize all your existing physical contracts and keep track of all obligations. Our smart AI features like “Risky Clause Identifier” scan through all your agreements with a click of a button and alert you for any unsafe clauses present in your agreement, protecting you from any liabilities or unwanted penalties.
Unify both buy-side and sell-side contracts and align your teams together to make more logical and rational data-driven decisions.
About Volody Products Inc
Volody is a leading AI-enabled Contract LifeCycle Management (CLM) Software company helping businesses digitize and automate their legal contract management processes. Volody’s CLM uses artificial intelligence & machine learning features to create smart and agile solutions that meet the needs of an ever-evolving business world. Trained with extensive data points, our smart CLM tool provides you with many insights and protects your company from any possible risks, be it financial, regulatory, or reputational.