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It is for this reason that all companies must haveAn effective contract management solution in order to:manage the entire life cycle of contracts;support the improvement of risk and expenditure management;Ultimately contributing to the results.Contract Management software is an automatic permanent contract monitoring systemEven if contracts are often considered as "documents which are set in stone at a specific time and identify the rights and obligations which will have to be fulfilled in a future period ", this definition is not completely accurate.These contracts are actually living documents that must be actively managed from start to finish, attesting that they meet and achieve their objectives.
Managing the life cycle of contracts is a constant process aimed at guaranteeing the appropriate structure and appropriate revision of a contract, the application of its provisions and the achievement of its object, as well as the identification and correction of its gaps.Contract management solves the problems encountered at each stage of the contract life cycleAccording to the IACCM (International Association for Contract & Commercial Management), effective Contract Lifecycle Management software must have the following minimum characteristics:A central repository and a structured process to manage the creation and execution of contracts for the entire companyAutomatic alert functions to effectively manage contract milestonesAutomatic workflow for contract verification and validationObligations management functions, as well as key performance indicators to improve compliance and contract performanceBeyond these basic functions, there is no precise and universally recognized contract life cycle model.
Our model perceives the life cycle through the prism of business challenges and we have broken it down into ten steps:RequestWritingNegotiationApprovalExecutionBond managementRenewal of contractsAudit and ReportingModificationThis model makes it easy to identify a subset of challenges for each stage, to assess their impact on the company, and to study to what extent technologies can respond to these problems and take advantage of opportunities for improvement.With these basic requirements in mind, let's see how a complete contract management solution works in terms of the challenges it targets.Contract requestChallenge: a cycle that is too slow can compromise the effectiveness of contracts.
Slow cycle times can postpone turnover to the next quarter and block purchases.Solution: Best Digital Marketing agency in Kolkata integrates perfectly with the systems of the organization's various business sectors.
In addition to collaborative writing and annotation functionalities, advanced contract management solutions automate a multitude of tasks: they can dynamically insert the content required for specific clauses and conditions, monitor changes to clauses and legal provisions, create alerts and configure validation workflows.
It must also provide a download function for paper documents as part of a largely automated electronic process.Management of contractual obligationsChallenge: no matter if the negotiation is successful or if the general conditions are favourable, the advantages of a contract can be quickly and entirely ruined as soon as you classify it and forget it.
