3 Reasons to Modernize Your Contract Negotiation Process
Over the past two decades, cloud technologies have completely transformed how the contract negotiation process works. Expensive client-server applications such as CRM, ERP, Project Management, Collaboration, and many others gave way to nimble web-based apps with per-user pricing models and low or no up-front costs.
Tech update contract negotiation processes with Parley Pro Tool
So why is it that in the age of social and mobile web applications, we still negotiate contracts like it’s 1996? We still draft contracts in MS Word, email them to relevant stakeholders, collect everyone’s revisions, reconcile all revisions into a single document, email the updated version, and then more of the same.
As a result, companies struggle with long negotiation cycles, lack of visibility, and poor process control and compliance. Studies have found that companies are losing up to 9.2% of revenue due to poor contracting processes.
Parley Pro was created because we believe that it’s important for businesses to modernize their contract negotiation processes. Over the past twenty years, they were able to modernize sales management, enterprise resource planning, and other organizational workflows and processes
So why do you need to modernize your contract negotiation process?
Today, contract negotiation requires a lot of manual, error-prone clerical work. Sifting through emails and reconciling everybody’s revisions into a single document takes up too much time and effort, resulting in longer negotiation cycles and a higher risk of losing the deal. Contract negotiation process efficiency is key for companies looking to get the best deals and terms for their products and services. Often, the time it takes to negotiate a contract can be a drain on resources and lead to missed opportunities. By streamlining the negotiation process, both sides can move more quickly to an agreement that meets their needs.
Modernizing contract negotiation will allow your company to devote more high-value resources to core business functions and less to clerical work.
Today’s process makes it difficult to answer even basic questions. How long will it take for a particular contract to close? How much revenue are we going to book this month? What % of contracts include nonstandard terms? Who approved particular term customization or concession?
Once your company upgrades contract negotiation from last century processes to a modern platform
Contract negotiation process control
How can you assure compliance and maintain a robust contracting process if your people still email static documents to each other and to third parties? Manually checking each contract and cataloging nonstandard terms, renewal dates, and other critical info is a nightmare. Contract negotiation is a process that should be controlled by the organization. Contractors can provide useful resources and services, but their interests may not always align with those of the organization. The negotiation process should be transparent and fair to both parties, with the organization maintaining control over the final agreement. Contractors can provide valuable expertise and resources, but their loyalty must be earned through a fair and transparent negotiation process.
Adopting a robust cloud contract negotiation solution will allow you to easily define, enforce, and audit compliance with your company’s official contracting processes.
Benefits of Contract Negotiation Process Modernization
Every business can benefit from digital negotiation, no matter the size. For small businesses, it fosters growth and new partnerships. For larger-scale companies, it allows them to improve existing relationships and surpass the competition.
Improve profits and success rates
Digital contract management and negotiation allow you to get the most out of your partnerships. Rather than focusing on scheduling meetings with the counterparty, waiting for responses, and playing phone tag, a digital platform allows businesses to utilize that time to collaborate on more financially beneficial deals.
Minimize wasted time
The contract negotiation process involves endless back and forth with the counterparty, taking far too long to settle on an agreement. When you modernize your negotiations, you can significantly reduce the time it takes since everyone can work together and collaborate efficiently.
Remotely access documents
With the pandemic, we have seen the importance of having all the resources necessary to work remotely. Something that’s been a real challenge for businesses of all sizes to manage has been negotiations. As face-to-face negotiation and redlining was once the standard, doing this digitally has taken its place and has proven to be far more efficient as stakeholders can collaborate anytime and anywhere.
Boost document organization
Contract negotiation services store all of your contracts and related documents in a central database. This means that all of your information will be stored in a single location that is easily accessible. Having easy access to your documents frees up your team to focus on negotiations rather than hunting down clauses, making the process much faster.
Does Your Business Need a Negotiation Modernization?
Small and medium-sized businesses often overlook virtual negotiation software as they believe it only benefits large-scale corporations. These businesses often run into issues when negotiating and collaborating on agreements, limiting their potential to achieve advantageous contracts. Therefore, small and medium-sized businesses still need to modernize their negotiation process to succeed in today’s market.
Here are some signs you need to modernize your process and strategies of negotiation:
Contract cycles are taking too long
Negotiation takes up a good portion of time in the contract lifecycle. Therefore, one of the best ways to shorten lifecycle types is by implementing digital contract negotiation services. This platform speeds up negotiations by allowing for increased collaboration, oversight, and communication without coordinating schedules.
Your business operates remotely or hybrid
Many companies have had to run their business completely or partially online. However, emailing and Word documents just don’t offer the level of collaboration necessary to achieve success when negotiating. When conducting business online, it’s vital to have a powerful negotiation tool in place so that you can still form beneficial partnerships.
You realize that your deals aren’t beneficial after signing
This is a common problem among small to mid-sized businesses that lack sufficient contracting experience. After signing a deal, they often realize that it’s not serving their company how they thought it would, and at this point, it’s too late to back out. You can ensure you know exactly what you agree to before signing the document with digital negotiation tools.
Parley Pro is cloud-based contract negotiation and management platform. Parley Pro makes contract review, negotiation, and management fast, simple, transparent, and collaborative.
About Parley Pro
Parley Pro helps businesses get more from their contracts by transforming them into strategic, digital assets — giving them the tools to create, negotiate, manage, automate, and optimize contracts to streamline business objectives, maximize revenue and reduce risk.