Procurement teams, like many modern-day teams handling a large number of contracts and documents, can benefit greatly from the use of a contract lifecycle management system.
Procurement contract management processes require the management of contracts as part of legal documentation, negotiating the terms and conditions of the contract, complying with them, and the documentation of any changes agreed upon by both parties. Nowadays, procurement teams can use contract lifecycle management software to create and execute automated, compliant contracts with minimal legal involvement.
Procurement teams are now able to configure their own workflows for contract reviewing to speed up negotiations and create more effective agreements. Moreover, using the right tech means tracking the status of contracts in the approval cycle using dashboards, and never missing expiration or renewal dates.
In the following blog, we’re breaking down the key features you’ll be using and the benefits of each.
1- Generate & Automate Repetitive Contracts from Custom Templates
First, Contract Lifecycle Management Software allows procurement teams to easily draft contracts from scratch or use configurable templates that auto-populate the contract with just a few clicks. The contract is autogenerated from a short and customizable questionnaire, and users have the ability to drag and drop pre-saved clauses right into their document.
Benefit: Reduces human errors, saves a ton of time in drafting and collaboration, and helps the entire team comply with guidelines and standards.
2- Collaborate & Redline in Real-Time with Internal and External Collaborators
Second, procurement teams can share messages, files, and documents, as well as collaborate in real time with external parties and stakeholders. Using smart integrations with popular tools and applications, such as Google Workspace, Outlook, Microsoft Word, and others, Contract Management Solutions allow for smooth negotiations and collaboration on legal documents, including the use of notes and attachments linked to specific documents or parts of documents. Users are even able to assign collaborators specific access based on entity, department, or role.
Benefit: Improves version control, organizes and streamlines all communication related to a particular contract or document, and most importantly, allows for the secure sharing of data at anytime from anywhere.
3- Design Entire Workflows, Automate Approval Stages, and Set Permissions
Thirdly, one of the most important features of Contra, is the ability to completely design and configure the software to Visualize and organize workflows and document lifecycles. Moreover, users can define an approval center where they are able to choose the order in which documents are approved and set permissions or restrictions to specific users or collaborators within the system.
Benefit: Improves progress monitoring for pending contracts and documents, optimizes efficiency and eliminates bottlenecks, centralizes and improves team collaboration.
4- Digitize Signatures & Execute Contracts Instantly
Additionally, the e-signature feature is a must. This allows procurement teams to instantly execute contracts and get them signed. Users and External Parties can e-sign documents and contracts using smart integrations with tools like DocuSign, providing authentic Electronic Signatures, and allowing for the secure execution of contracts remotely.
Benefit: Saves time and effort for all involved, it’s economic and eco-friendly, and most importantly, it works just as well as an in-person signature.
5- Set Automated Alerts and Reminders
Procurement teams need to keep track of notice periods, renewals, or automatic increases, and so much more. Using Contract Lifecycle Management Software allows for automated alerts ad reminders to be configured by the admin to ensure that all the right people are notified at the right time – this is useful and applicable to every stage in the lifecycle. For example, notifications can be automated to alert a specific user that a contract has been drafted or signed.
Benefit: Stay on top of key responsibilities and potential opportunities, and let nothing fall through the cracks.
6- Store Documents and Data Securely in Digital Repository
Another crucial feature is the use of digital archiving. CLM software gives your team a secure and searchable storage space, where you can access, edit, and update documents and files securely. Moreever, this can be done from anywhere, with the ability to easily filter or search for data. This is essential for any modern-day team working with a large number of contracts.
Benefit: Having secure digital archives that you can easily search through not only protects the company, but also saves time and effort in retrieving, updating, and organizing data.
7- Create Custom Dashboards, Reports, and KPIs
Lastly, CLM software like Contra, empowers its users to make data driven decisions. Users can customize their reports and dashboards, in terms of expiring contracts, contracts awaiting signature, contract owners, contract values and so much more. This gives full visibility on real-time detailed analytics, at the touch of a button.
Benefit: Visualize and analyze data easily to make more informed decisions. Monitor team productivity, allowing room for improvement and optimization of workflows and processes.
If you’re interested in Contract Lifecycle Management for Procurement Teams, but are not ready to make an investment yet, Try Contra for free, today!