How is Enterprise Contract Management Beneficial?
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How is Enterprise Contract Management Beneficial?

By CIOReview | Wednesday, January 6, 2021

Companies are using a contract management approach to arrange a series of contracts, clauses, and models for standardization.

FREMONT, CA: Enterprise contact management is a contract management approach that puts all the enterprise's obligations into a single framework for smooth, comprehensive management. Automated systems substitute the inefficient methods of manual contract management systems with enterprise contact management and streamline the operation. The companies may arrange a series of contracts, clauses, and models for standardization and fast retrieval with a computerized system in place.

With tools like the Icertis Contract Intelligence Platform (ICI) for enterprise contract management, they can:

Minimize the risk by finding missing clauses necessary to comply with several regulations, significant if it operates in multiple countries.

Apply cloud computing and storage to guarantee that contracts are on the same page with all team members, keeping them informed continuously, no matter what platform they utilize.

Utilize data to ensure compliance with agreements and optimize their financial output

Optimize template and clause library contracts while automating much of the process of contract authoring, approval, and execution

Who Requires Enterprise Contract Management Software?

Medium to Large Organizations

The number of contracts that have to be managed each day can be overwhelming for medium to large companies. A manual system will not keep up with the amount of analysis needed to go over each one, wasting scarce human resources and opening up costly errors for the company. They can process contracts rapidly and efficiently with an automated system. Along with a strong clause and template library of authorized contract language, an automated system can offer the companies with sophisticated search tools to quickly locate any details.

Organizations with Multiple Divisions

If companies have several departments or offices, they know that having everyone on the same page can be a hassle. For sustaining a successful organization, clear communication is vital. Contracts are siloed by department or geography without an enterprise contract management structure in place, making it challenging to organize and rationalize contracts correctly across the company.

Industries with Stringent Compliance Standards

For businesses that work in strict regulatory environments, enterprise contract management is increasingly critical. With tools used for enterprise contract management, enterprises may escape a compliance crisis. They can set up safety barriers inside the system with the software so that no contract breaches the internal controls. Even some model business rules so that contracts are checked prior to execution by the right stakeholders.