A key component in managing risks, achieving compliance, and enhancing business performance is contract compliance. Contract management involves customers, employees, partners, and vendors. Furthermore, it includes the negotiation, documentation, and compliance of the terms and conditions in contracts in a streamlined and smooth manner. The purpose of contract management is minimizing risk, optimizing financial/operational performance and making the organization compliant.
Here are 5 ways contract generation keeps your organization complaint.
1. Manage centrally
In order to ensure that everyone can find your purchasing contracts easily, contract generation software allows you to store them in a central repository.Contract generation software ensures secure access. This means that people see only what they’re supposed to see.
Generally, contracts include purchase orders, sales invoices, utility contracts, and employment letters for the trade of goods or services. The characteristics of such trade contracts include intellectual property agreements, technical specifications, and international trade practices. Contract management looks to periodically monitor payment certification, Service Level Agreements (SLAs), Key performance indicators, dispute management, account management-contractor meetings, and audit of records. Traditionally, all this data is dispersed and often not readily available or accessible at the point of need. Given that in order to define the role, responsibility, and duty of each unit within an organization as well as the ways of achieving strategic objectives and dealing with risk, a CLM allows data to be easily accessible and usable from a centralized location.
2. Ensure payment compliance
With two -or- three way matching of invoices,Contract generation software allows you to ensure compliance at the time of payment.
In addition, the software also streamlines compliance along various other dimensions. For instance, the key components of every robust contract management plan include governance structures, ethical conduct, communication and relationship management, performance monitoring, financial management, evaluation and reporting, data and information management, risk management, inspection and testing procedures, regulatory requirements and quality assurance practices. With a contract generation software, all this can be seamlessly integrated.
3. On-time renewal
Contract generation software allows you to enter contract renegotiations fully informed on spend as it provides automatic alerts before the expiration of contracts.
4. More visibility
Contract generation software allows you to easily understand spend against POs, total savings and contracts over a contract’s lifetime. You can instantaneously generate a transaction-ready contract with the help of contract generation software once you’ve completed the interview. You will be able to dramatically reduce the time it takes to generate monotony of a contract and indemnity closing documents for new transactions by transforming documents and forms into process applications.
When these processes are streamlined, it becomes easier to keep track of your contracts and their ROI. This in turn will help you to reduce the expense of closing deals. Furthermore, you’ll be able reduce and in some cases eliminate human error.
5. Proactive contract management
Contract generation software enables proactive contract management. A contract generation software allows you to transform PDF forms and text-based documents into process applications.Contract generation software provides interactive, answer gathering forms (called interviews) and guides users through the process of entering data to provide range validation of field-specific help resources and date and numeric answers. Both of these significantly reduces the time spent organizing and accessing them to make decisions. This allows organizations to realize cost savings and negotiated terms.
With contract generation software, you can keep your organization complaint. CLM is one such software. You can find out more about this software by watching the CLM Product Tour.