As a business owner, your business’ success largely depends on its ability to manage contracts and negotiate the best deals for your customers.
However, there’s a lot of paperwork involved, and relying on traditional contract lifecycle management (CLM) tools can hinder businesses from realizing their goals for business growth.
So this is where contract management tools come in handy. They streamline the contract process for the parties involved helping you to focus on what’s more important.
What is Contract Lifecycle Management?
Contract Lifecycle Management (CLM) is the process of managing and organizing contracts.
Contract management tools help contracting officers, lawyers, and other stakeholders track and manage contracts. They also provide access to contract data for better decision-making, negotiation strategies, and compliance issues within their organizations.
Benefits of Contract Lifecycle Management
Contract management tools automate the contracting process by making it more efficient. This helps to:
- Reduce time spent on mastering contract management. Since the process is automated, your team will spend less time conducting repetitive processes such as filling in the paperwork.
- Reduce costs associated with contract management. Since the parties/departments involved have access to all the contract information, the cost incurred when holding unnecessary meetings is reduced.
- Improve the quality of contracts by making them easier to read and understand, which leads to better business decisions.
Best Practices of Using Contract Lifecycle Management Tools with AI
The negotiation process can be automated thanks to AI, which makes it less risky, faster, and cost-effective. An AI-power negotiation tool can help in the implementation of CLM through;
Faster contract approval
Contracts may be left unapproved during the onboarding process, mainly if they must go through several departments.
However, your team can close deals faster and more efficiently by automating the contract approval process to pre-approvals.
Better automation
AI makes mastering contract management easier by automating repetitive, erroneous, and complex processes like contract reviews and negotiation.
AI also increases legal compliance by ensuring contracts adhere to essential terms and clauses.
So, contract evaluation and risk analysis can be done in minutes.
Enhanced teamwork
With a cloud-based AI platform and automated notifications, uploading and real-time access to new agreements are much easier. Additionally, revision suggestions that comply with corporate requirements can be approved by pressing a button.
How Contract Review Software Can Help
There are various reasons why your business should have contract software like BlackBoiler that can review and negotiate contracts in minutes. For instance, with such a tool, you can:
Reduce/avoid common mistakes.
When dealing with multiple contracts at a go, mistakes are inevitable. If not mitigated, these mistakes can lead to massive losses.
With a review tool, it is easy to analyze contracts, make and track changes can correct any error.
Achieve better negotiation and contracting processes
Contract review software help to automate repetitive processes such as document review, which helps to correct common human errors such as confusing dates. This further help to achieve accuracy and clarity through comprehensive reporting.
Improve your human output
A popular myth about AI is that it replaces the human workforce. On the contrary, AI amplifies productivity by reducing errors and time spent doing repetitive processes. This gives them more time to focus on other essential tasks.
Conclusion
The time between contracting and delivery is becoming shorter and shorter. It would help if you were prepared for this change in your business. AI-powered contract management software will vastly improve your negotiating and contracting. They make Contract Lifecycle Management (CLM) faster and more cost-effective.
