New players are currently devising solutions designed by and for contract managers.”
— Thierry Vidal, Director of Contract Management at NAVAL GROUP
The quote above, made by Thierry Vidal, Head of the Process and Tools Commission of the French Contract Management Association, was in the association’s December newsletter. Through a series of interviews with leading contract practitioners, [inlinetweet prefix=”” tweeter=”” suffix=”#ContractManagement”]The Journal of Contract Management provides a look at what contract management needs your software solution should support — beyond the usual alerts, clauses, workflows and e-signatures. In short, don’t settle for merely “adequate.”[/inlinetweet]
Your Contract Management Solution should enable you to:
- Quickly and easily identify all of the binding, unclear, sensitive and problematic clauses that may exist in contracts through automation
- Outline the negotiations and developments around these clauses and list the essential obligations to which the parties are ultimately committed
- Identify the contract risk associated with any clause deemed to be “unsatisfactory,” or any obligation that is difficult to meet (a risk that, in execution, may result in a deviation, unforeseen event or a non-contractual demand)
- Assess these contract risks with regard to the internal handling process and provisions
- Put an action plan into place negotiations and further discussions, offer modifications, and a settlement (addendum, memorandum of understanding) or provision (residual risk in case of renunciation)
- Assess and pursue a claim, and potentially a dispute, while allowing for feedback if discussions fail
- Manage evidence, payments, penalties, opportunities and more.
Beyond clauses: a contract risk wake-up call.
In the interview with Thierry Vidal, he highlights the need of contract management solutions to go beyond just clauses, but include provisions as well. There is no shortage of CLM vendors who focus on managing and administering lists of clauses; that’s not enough, because true risk is hidden in legal provisions.
According to Mr. Vidal, this is because contract professionals and practitioners short-change themselves when identifying a list of contract management solution required features. For many, it’s enough just to have a repository of contracts with an alert on the renewal date. In reality, what they are lacking are tools for managing their entire contract lifecycle process in a way that’s automated and systematic. Access to contracts and alerts are important, but it’s critical to think much further to anticipate financial risks, legal risks and risks buried in provisions.
Contract Management Software built into the Determine Cloud Platform.
In addition to the benefits explained above, Determine Contract Management is designed to empower legal professionals by adding a multiplier effect, including:
- Integration with supplier information management: All data associated with your suppliers (certificates, audit reports, credit risk reports, etc.), if not properly identified, centralized and communicated, can create risk and undermine relationships. Through integration on the Determine Cloud Platform, a single verified source of shared contract and supplier data enables greater visibility, productivity and compliance.
- The ability to simplify managing complex organizations. Even mid-market organizations can have thousands of suppliers, partners and other third party relationships. Through complete configurability and scalability, our modular contract management solution on a cloud platform allows thousands of users to access the right documents, based on their role, function, and region — including language, tax jurisdiction, currency and more.
- End-to-end digitization of the contract lifecycle. Automation, integrated workflows and self-service functionality, as well as a simple intuitive user interface, makes the entire contract process from request to renewal fast, simple and seamless.
Obviously, there’s a lot more robust functionality available through our modular Contract Management solution on the Determine Cloud Platform. So, if you’re ready to demand more from your contracts and process, schedule a personalized demonstration.