The Pros and Cons Of Cloud Contract Management
4 to 6 weeks, that’s the amount of time – on average – that most organizations spent on negotiating a contract. It may take longer or shorter, depending on the complexity of the risk both parties are agreeing to and thousands of other underlying factors, But, an average, according to US stats’ that overall average. And this just takes into account ONE – 25% – of a contract’s lifecycle. Companies still have to deal with management, supervision, termination, and/or renegotiation.
Today, taking into account those frightening figures, and damming time-consuming and profit vacuuming stats’ most companies are using tech, and software to bypass this issue. They are effectively outsourcing those headaches. In this blog post, we’ll talk about how to do that — about cloud contract management. The benefits of cloud-based CLM and a few tips on what to search for when getting the necessary software or service.
What is cloud contract management?
Cloud contract management is a process that helps organizations supervise their contracts and agreements. It normally employs CLM – Contract Lifecycle Management – software. The latter is meant to automate, streamline and optimize processes during key stages. Including, but not limited to workflow, compliance, renewal, etc.
An example of this might be an agreement between your company and a cloud service vendor which outlines the fees they will pay for the service. The contract management process helps track who is responsible for modifying the terms and conditions of an agreement, how charges are calculated, what happens to contracts upon expiration or termination, who manages contract renewals, cancellations, and dozens of other things.
In a nutshell, cloud-based contract management process includes the following four stages:
- Contract negotiation and procurement.
- Contract management.
- Contract compliance.
- Contract termination.
By creating a simple, easy-to-digest language, key templates for each vendor and industry you might stumble upon, consistent supervision, and unified terms, CLM software saves you time, and money, and reduces error.
Cloud contract management solutions can be accessed from anywhere, which means that you can work on your business while on the go. – It also offers an easy way to share contracts with other stakeholders like vendors, partners, and customers. – You will be able to access all your contracts in one place, which makes it easier to update and manage them all at once.
Another great thing about cloud contract management is that it provides unlimited storage space for your contracts so you don’t need to worry about space limitations or running out of hard drive space.
Cloud VS manual contract management
Cloud contract management is a service that allows companies to manage their contracts and agreements in one place. It also makes it easier for the users to access the contract information right from their phone on an innovative and easy-to-navigate platform/app. It also makes it easier for the users to access the contract information from anywhere.
What about security issues?
With a blockchain, it is possible to send an agreement directly between two parties without having to sign anything requiring a paper form. This process allows companies and individuals to save time. E-signature issues, and makes the contract iron-clad against cyber attacks or outside interference. Both parties have to agree if a contract can be altered.
Meanwhile, manual contract management is a time-consuming and tedious process. It includes the following steps:
- Data entry of contracts into an electronic system
- Incomplete execution of contracts
- Tracking of contract performance
- Reporting on contract performance
- Managing contracts with multiple parties and vendors.
Cloud contract management benefits
At its core, cloud contract management is a great way to save time and money. It’s as simple as that. Its tech, created and optimized your overall benefit. To give you time to focus on other aspects of your organization, or simply to give you more leisure time — time to navel-gaze, or play with your kids. It not only saves the company from hiring more employees but also provides a cost-effective solution for all kinds of businesses.
Cloud-based contract management software automatically generates contracts and sends them to the right people in the right format. Some of its benefits are:
Procurements, sales contracts, internal agreements, IP licenses, subscriptions — CLM supervises all of them, and more, and makes sure everyone is pulling their weight and sticking to the fine print.
CLM makes it easy for both parties to stick to the lettering and wording of the contract. It strengthens the operation by eliminating human supervision, and, with it, human errors.
CLM automates all steps in a contract’s lifecycle — from start to finish.
How many folks, in your organization, are there just to manage, create, and administer a contract? It is an ongoing process and, in many cases, you need responsible and highly efficient persons to supervise that everything is getting done. Cloud contract management system reduces the need to employ people, and with it signs off on new paychecks, for this process.
Switching to Cloud Contract Management
By eliminating ink and paper from contracting, you gain greater visibility, greater control, and optimized dashboards – along with new tech-heavy tools – meant to streamline your business. Switching to a cloud contract management service is extremely easy, there are multiple solutions online. All innovative and intuitive and customizable.