November 28, 2022 | Procurement Strategy
Contract management is a vital part of procurement operations. It involves tracking and monitoring contracts, procurement processes, and contract performance.
However, many businesses continue to rely on manual, time-consuming practices for contract management. This makes performance tracking difficult, hampers efficiency, and leads to missed opportunities.
In this post, you will learn how AI-powered technology can help you make the most of a contract by automating your contract management tasks.
Contract management automation is the process of automating key contract management processes including contract creation, approval and governance processes, procurement, contract analysis, tracking, and risk and compliance management. The use of contract management automation software increases the speed and accuracy with which companies manage their contracts. It also frees up human resources previously dedicated to these processes and lets employees focus on higher-level functions that require more complex decision-making skills.
Contract management automation can be implemented in a company’s purchase-to-pay process, in procurement, and throughout the lifecycle of a contract. It is especially critical in procurement, where the goal is to procure goods and services that meet the needs of the organization while also meeting the requirements of its contracts.
Contracts play a vital role in the operations of any company. They set the parameters for the business relationship and help to ensure that both parties are accountable for their actions. A well-executed contract management process helps to minimize risk and keeps operations running efficiently. It can also help to make the business more competitive by providing customers with greater assurance that the service or product will meet their needs.
If managed correctly, contracts can be a valuable source of data for companies. They can be used to track key performance indicators, forecast future demand, and more. An automated contract management process makes it easier to collect, manage, and analyze this data, allowing you to make better business decisions. It also helps to reduce the risk of human error.
AI-enabled contract management automation software can automate most contract management processes. It can help you to create contracts, track and manage the completion of tasks, obtain approvals, and manage risk, procurement, and procurement analytics.
Contract management automation can help to standardize your contract management process and to eliminate human error. It can also help you to improve the speed and accuracy of contract creation and approval, procurement, risk management, and procurement analytics. AI-enabled software can also help to increase the visibility and transparency of your contracts, allowing you to make better business decisions. Here are some of the other benefits of contract management automation:
The lifecycle for contract management automation spans the full length of a contract, from the initial contract creation through contract termination. Contract management automation is typically implemented in three stages:
Businesses must automate contract management to boost contract visibility and compliance, track performance, free human resources as well as derive greater savings and value.