Why manage contracts?
To continue operating profitably is always the primary focus of any enterprise. In today’s competitive corporate environment, the ability to effectively manage contracts is essential to surviving in the marketplace and achieving success.
At different points in our lives, each of us would have or will, without exception, sign a contract. However, have we ever considered all of the conceivable outcomes in the long run? Is it only a matter of signing and forgetting the contract? How can we effectively handle contracts when we have a large number of contracts, each of which is unique and covers a company in every possible way?
Studies show that companies lose between 5% – 40% of the value on a deal due to inefficient contract processes.
One might require a Contract Lifecycle Management (CLM) system which should be loaded with the essential, complete contract information. In order to get the correct information one can inquire, report, and manage effectively a good contract lifecycle management software is pivotal. Any CLM is only as good as the information it contains and can retrieve.
Managing your contracts effectively thus managing your business better
Every year, many companies lose a significant amount of money owing to contractual non-compliance. The reason? No/poor process of managing contracts. Is there any way out? Certainly, there is. The key to an effective contract management process can be as outlined below:
Think beyond “sign and forget” and understand the contract thoroughly.
- Have a system for tracking what is to be delivered.
- Closely monitor the delivery timelines.
- Understand the penalties attached to non-performance.
- Think ahead – what value-add can be offered?
Brightleaf streamlines the entire contracting cycle by providing more visibility and transparency. Brightleaf with its unique blend of automation and manual review of contracts has helped its clients. You tell us what you need to inquire about and report on and we will transform paper contracts and attachments into structured information for your CLM. We use clever technology such as natural language processing and semantic data extraction in a multi-step process. This process is quality verified by lawyers to ensure our standard of Six Sigma is maintained. This methodology has indeed proved to be a successful formula for our clients to better manage both their buy-side and sell-side contracts.