Tag: Contract Management

Contract Management Software Pricing Guide

Contract Management Software Pricing

Contract management is an important part of any business, irrespective of its size or nature. Enterprises have to spend a considerable amount of time creating and managing contracts. When your process is manual and includes too many administrative tasks, the expensive human resources of the company can easily be pulled into low-value administrative tasks. And even after all this, the business remains prone to financial and audit risks. This is where contract management software can help.

Good contract management software can save you hundreds and thousands of dollars by improving your operational efficiencies, reducing time, and saving resources that can focus on other critical stuff happening within the organization.

A case in point is FineMark Bank which was spending four to five hours every day preparing each document manually. When they switched to contract management software, the contract preparation time was brought down straight to 30 minutes.

If you are considering investing in contract management software, know that the contract management software pricing can vary from $7.99 to $100,000 per year. This makes understanding the features and factors of contract management software critical.

Here are the factors to be considered when deciding the cost of contract management software.

Factors that affect Contract Management Software Costs

1. Number of users

The extent of availability of the software and the integration it enables plays a crucial role in decision-making. This depends on how cross-functional the contract requirements flow in your organization. You might want to answer who will be using the software.

Revnue User Management
User Management : All subscriptions include unlimited users to enable greater collaboration.

Is it only your legal team, or does it include your procurement, sales, and finance teams? While some platforms have plans for unlimited users, many platforms offer a pay-per-user model, so you pay accordingly.

2. The capability of the software

Contract management software offers features like AI-based contract management, reporting and analytics, clause and template libraries, and a workflow and approval system. Look for the features you need for your business and the charges for the same. This will help you to calculate your contract management software cost.

Advanced Analytics & Reporting
Advanced Analytics & Reporting: Create custom reports and dashboards that give you access to important terms and conditions, financials, assets, supplier information, and more.

3. Storage size

Contract management software pricing will also depend on the storage size they offer. For example, some platforms charge for the actual amount of stored space used, while some have a capped price for unlimited storage. Additionally, if you have plans to expand in the future, choose a vendor who will allow you to upgrade to a higher storage plan in the later stage.

4. Customer support

Know that you might experience some hiccups with your contract management platform, especially if you’re starting to use it for the first time. So, choose a platform that offers a customer support system. If this facility is chargeable, it will affect the overall pricing of the software.

5. Third-party integrations

Do you need to integrate third-party software into your contract management software? For example, many businesses prefer to have an integrated digital signature software in their contract management software for ease of functioning. Depending on the third-party integrations, the cost of contract management software varies.

Zapier Integrations
Unlimited Integrations: Integrate with your existing business applications, using Revnue’s public API and Zapier integrations.

6. Security

Contracts are legal documents, and any mishandling can lead you to financial loss, data breach, and associated trouble. If your business needs to follow rigorous compliance protocols, you must ensure your contracts are safe. Single sign-on, multi-factor authentication, and secure cloud data centers are some features to keep your documents safe and may come with additional charges. With cybercrimes becoming a major concern for businesses, keeping your documents safe by paying a little extra can help you save your business from ransom attacks and other similar cyber threats in the long run.  

7. Implementation

While SaaS-based contract management software allows you to sign up and start using it in minutes, some software can take a long time for a complete implementation across the organization. Plus, you need to spend time training your employees to use them.

All these hours can add up to your total cost. So, consider the implementation time as it can affect the pricing for the contract management software.

READ ALSO: What is Contract Lifecycle Management?

Different fees associated with a contract management software

Apart from the factors discussed above, a few vendors also charge various fees that could be one-time or recurring. These fees usually cover the maintenance charges, implementation, cost, support of your platform, and beyond. Some of the standard fees that you may come across include:

1. Platform license fee

Most platforms charge a platform license fee. This is the basic fee you need to pay to start using the software. This fee is usually monthly or annual, and it can vary depending on the features you are using. Usually, the more features you use or the more employees use the software, the higher the fee is.

READ ALSO: Why Contract Management is Critical for Finance Teams?

2. Integration fee

Many companies may charge an integration fee for integrating your contract management software with other business operations like e-signature platforms, CRMs, and so on.  

3. Customer support fee

While many companies offer free customer support (the fee is included within the software cost), some software companies charge an additional fee. Customer support is an essential feature that you cannot do away with. So, check if the software you plan to go with has any additional customer support fee, as this can affect your total contract management software cost.

Wrapping up

Although determining the cost of contract management software is no easy task, our pricing guide will help you choose the best option. While some contract management softwares offer basic features for free, others are highly sophisticated with a plethora of features, and of course, at a high cost. Before making a software purchase decision, we would recommend considering the needs and goals of your business and then deciding on a contract management software pricing that meets all your requirements.

Revnue is one of the most competitive contract lifecycle management tools in terms of pricing. From unified contract management, frictionless collaboration to a smart repository and AI-powered contract engine, it offers everything a small, medium-sized, or large enterprise needs for automating its contract lifecycle management.

Contract Management Best Practices for Modern Businesses

Contract Management Best Practices

Managing contracts sometimes can become so daunting that you may need help at several fronts – legal, managerial, operational, strategic, and so on. A company may be dealing with vendors from different countries and laws differ from state to state. This makes room for several grey areas and not everyone knows the rules or the exceptions to them. Here’s where good contract management practices come in handy.

At Revnue, while offering contract management platform services, we often get into the nitty-gritty of some industry best practices that are particularly beneficial in specific domains. In this blog, we speak from experience.

Why is it so important to care about good practices?

Let us understand contract management through a simple fire department analogy. Whenever the fire department gets a call for arson or fire, their first instinct is to rush to the scene with the force. Their primary job is firefighting and their secondary job is fire prevention in areas of the building that have not caught fire yet. The firemen are trained in protocols, they follow a rule book.

A contract is such a rule book that defines the roles and responsibilities of each party. The process of contract management is more on the line of firefighting since the contracts are already in place and need intelligent management. Best practices, on the other hand, can be likened to fire prevention – they help us prevent mishaps from happening in existing contracts.

A combination of a contract management platform combined with best industry practices saves businesses time, energy, and resources, and often leads to cost reduction as well.

Download eBook: Contract Management Trends 2022

Contract Management Best Practices in Process

# Standardize your process 

When the foundation of each contract is laid well, the contract is more likely to yield benefits. It is important that every business develops a systematic process of creating contracts. A standardized contract-making process ensures there are no surprises when it comes to terms of the contract and there’s enough room for grey or unforeseen areas. Here’s what a standard contract process looks like –

Step 1: Contract creation: The very first step is to identify contracts and relevant documents that will support the purpose of the contract. Then there should be a process in place to author the contract.

Step 2: Collaboration: Through good contract management software, different versions of the contract must be compared, discrepancies removed and the final version be saved.

Step 3: Contract signing: This process will involve approval of the contracts and execution. This is where most bottlenecks happen. A good contract management process will have approval workflows to speed up this step. Today, digital or cloud-based contract management tools allow electronic signatures and security filters that accelerate contract signing.

Step 4: Tracking: This includes revisions and amendments, obligation management, and auditing and reporting. This step is crucial for ensuring that all contracts hold good for the benefit of the company and continue to serve. Digital contract management software allows tracking the deliverables being met by vendors, making amendments, and reporting.

Step 5: Renewal: This process should be automated in a contract management software that must push notifications whenever renewals are due and filters are installed for taking the next steps.

# Predetermine contract information flows

At the time of drafting contracts, businesses should push for accuracy and visibility apart from easy access to the desired information. For instance, there must be clear categories or heads of costs incorporating any hidden or future overheads.

# Bring consistency to your approach

Be consistent in your approach right from the start. Make rules for obligations and ensure that vendors or providers abide by those rules, without any exceptions. Never get into the habit of providing small concessions here and there since they lead to overhead costs in the future and bring about strains in vendor relationships. Rules must be applicable for all and install tools to ensure you keep your end of the bargain in every contract. In case of changes, always have a system in place that records amendments, reasons for changes, or the circumstances when those amendments were made.

# Hire a good contract management team

There should be a group of experts within the company or a contract manager that supervises the contract processes. While small businesses can install intelligent software, medium and big enterprises will also need a team of people managing those tools correctly.

# Install a good contract management platform

With the amount of complexity that businesses face today, it is almost unthinkable to manage contracts manually. There must be a good contract management platform in place that provides easy accessibility and visibility of contracts throughout the organization for quick referencing.

Contract Management Best Practices in Principle

# Deep understanding

It is advised that every word of the contract be read thoroughly and understood. There may be legal jargon that may have a context you don’t understand or there may be ambiguous terms that may entail trouble in the future. Therefore, as a matter of principle, it is advisable to have a deep understanding of each contract.

# Background checks

Vendors and providers come from different backgrounds and work practices. Some vendors may provide quality material but they may be unprofessional in their dealings, others may be thoroughly professional but may be inefficient. It is important to cross-examine the background, past work experience, or track record of people entering the contract.

# Look for ambiguity

Ambiguous terms will not jump out, you will need to look for them. Sometimes contracts may refer to other documents that may not be previously verified. Make sure you review each such addendum or external document before signing the contract.

# Make no exceptions

As we stated earlier, our experience in dealing with contract management challenges can be summed up in one principle – exceptions to the rules lead to more rules and complexity. As a principle, never make exceptions in a standardized process of contract management for anyone. One rule broken may cost any business dearly in terms of financial losses and may also disturb a smooth contract-honoring process.

Revnue provides an AI-powered contract management platform that follows industry best practices. We have developed this platform with a vision to help modern businesses achieve their end goals. Our platform goes beyond document or contract management and allows for intelligent analytics that enables good business decisions. If you want to learn more, schedule a demo now.

READ ALSO:

Why legal teams love Revnue

What is Contract Lifecycle Management? A Comprehensive Guide

5 Ways Sales Team Use Contract Management Software to Shorten Sales Cycle

Enterprise Contract Management : A Valuable Asset

Contract Management Software for Small Business

People in today’s society are expected to accomplish a lot with little. While it may work most of the time, putting too much emphasis on productivity might lead to inadvertent shortcuts and omissions. Given the limited resources, contract management software helps small businesses and entrepreneurs to be more efficient in their work while ensuring that they do not miss important milestones. It also helps save costs by helping them track both their buy and sell side spends.

Contract Management Software: A Valuable Asset for Small Businesses

When small-business owners or independent contractors hear the term “contract management,” they automatically believe it’s only applicable to giant corporations. Nothing could be further from the truth. Independent lawyers, certified public accountant (CPAs), and small legal firms are examples of this type of business. Small firms regularly enter into sales and purchase contractual agreements and they can work much more productively using contract management software.

# Day-to-day assistance

Contracts provide information about the transaction, such as the type of work to be done, timeframes, and the list of tasks at hand. Small businesses should invest in technology that simplifies their day-to -day work and assists them in managing contracts from start to finish. This includes every step of the contract lifecycle from signing the contract to execution and renewals. Recent advancements in technology have demonstrated that an AI-powered software can help manage contracts efficiently and cost-effectively.

# Learning curve

Small businesses miss out on the benefits of contract management software thinking it to be a whole new learning curve. However, by choosing an intelligent contract management platform, they can ace this hurdle as well. A contract management software that provides an intuitive and user-friendly interface helps the staff get started quickly without much of a learning curve.

As much as contract management is vital to firms operating on a large scale, the software is equally necessary and beneficial to small firms.

Impact of Contract Management Software on Small Business

Small firms are involved in a variety of agreements during their existence. When contracts are properly managed, businesses and their customers have stronger relationships since no guessing is involved. When it comes to deadlines, customers want their products or services delivered on time.

Download eBook: Contract Management Trends 2022

Here are some key benefits of using a contract management software:

Digital contracts lead to less paperwork, more efficiency

Many individuals still prefer to use paper contracts, which are prone to being lost, destroyed, or falling into the wrong hands. Contracts will be safe from prying eyes and harm if saved on a device or cloud server. Today, AI-powered contract management software makes room for all kinds of contract formats. This in turn leads to greater efficiency with fewer resources.

Helpful productivity-enhancing instruments

A contract management software also gives access to valuable features like enhanced process automation and easy tracking to make management more effortless. For employees, this is a huge time saving tool, allowing them to focus on other aspects of their jobs. The software helps digitize contracts and extract useful metadata automatically in a few minutes, as compared to hours needed when done manually.

Staying on top of the game

Regular monitoring of all of the company’s contracts can be a real challenge for small businesses with limited resources. The organization sometimes may not be aware of the contracts that have been completed and the ones that are still outstanding. A contract management software notifies everyone involved about the settlements that are still in the works, duties and promises under a contract. As a result, there are fewer chances of missing critical deadlines like the ones for contract renewals.

Alerts & Notifications: Stay on top of things and never miss a contract / important deadline with our Smart Reminders.

Decreases avoidable costs

Small businesses must survive any economic or financial upheaval as the world around them changes. Reduced instances of inflated prices and improved compliance are two key benefits of contract management software. An organization will have better relationships with their customers and suppliers if they leverage contract intelligence.

Advanced Analytics & Reporting: Create custom reports and dashboards that give you access to important terms and conditions, financials, assets, supplier information, and more.

Staying alert at all times

Contracting parties often alter the terms of their agreement to make transactions go more smoothly. It might take a long time and effort to keep track of these developments, in particular if there are a large number of contracts to manage. Small company owners and self-employed individuals would save a significant amount of time due to the lack of available resources. Using contract management software will help in keeping tabs on all of these modifications with just a few clicks.

Dealing with compliances

A contract is a legal instrument that, when used properly, may make dealing with the law more smoothly. If one of the two or more parties wants to modify a contract clause, there should be enough flexibility within the given compliances. A contract management software helps anyone stay on top of their finances by facilitating both external and internal audits. It also helps structure business processes in some situations.

Next Steps

A Contract Management software aims to increase output by minimizing risks and the time required to create and maintain agreements. So many businesses are hampered by inefficient manual procedures that finding simple software to use is like a breath of fresh air. Today, small businesses and firms also have access to AI-powered platforms such as Revnue. If you are one such business, do get in touch with us.

READ MORE: Top Contract Management Challenges

5 Real Benefits of Contract Management System in 2022

Benefits of Contract Management Platform

How do companies like Amazon or Netflix manage their contracts? Most likely, through an automated contract management platform. Without the ability to easily access digital contracts, things can quickly take an unprecedented turn, as evidenced in numerous events related to breaches and conflicts regarding misunderstood contracts.

Contract management includes contract implementation, vendor selection, issue identification and control, tracking, and renewals. A good contract management platform provides a framework that enables businesses to optimize their processes around how contracts are managed and executed. In recent times, the role of AI has become significant in contract management as it simplifies contract management and assists businesses in using their contract data to make strategic decisions and drive future initiatives.

Download eBook: Contract Management Trends 2022

5 Benefits of Contract Management Software

1. Monitoring end of Contract Terms

A sound contract management software such as Revnue makes it easy to access critical contract terms and conditions both on the buy-side as well as the sell-side. Dashboards and automatic alerts help monitor end of contract terms and prepare the organization for what’s expected of the contract and take timely actions.

Contract Management Alerts

2. Improved Traceability 

Once authorized, a contract must be accepted, signed, and executed by several parties. When several people around the country or perhaps the world are involved, things get tricky. A contract management software provides full traceability, making it easy to monitor changes and eliminate errors/losses that occur due to the lack of knowledge or accountability.

3. Centralizing Contracts and Searchability

Failure to search for the right contracts at the right time often leads to financial losses. It is possible that one single vendor for an enterprise may have been providing a wide variety of services and may have different contracts for each of those services. When all contracts are centralized in a repository, it becomes easy to search across all contracts for terms and metadata to get a complete picture. Revenue’s Smart Search capabilities ensure that you get quick answers to all your contract-related queries.

Contract Management Search Functionality

4. Reducing Risk by Ensuring Compliance 

Contracts cover payment terms, workflow, service expectations, and compliance. Contract management reduces risk by assuring compliance and tracking it. It helps the bottom line by comparing costs and saving money. Real-time contract insights allow management to make data-driven choices and course adjustments before it’s too late.

5. Operational and financial efficiency 

Given how the world has changed since the pandemic, many firms must rethink how productivity, performance, personnel, and inventories impact growth and profitability. It should include goals, deadlines, budgets, resources, and risks. Each initiative/project requires particular parts, purpose, and management for smooth operations. All these factors complicate an already complex business landscape. However, these factors can be managed systematically by digitizing your contracts with an intelligent contract management platform.

Unique Benefits of Revnue’s Contract Management Software

Here are some additional benefits of Revnue that make it unique from other available contract management software.

Supplier Management: With Revnue, you can manage your suppliers centrally alongside your contracts and assets. The platform allows you to consolidate information on all your suppliers in one place and get instant access to data that may be otherwise difficult to find. You can pull details on financials, payments, renewals, history, contact information, and other supplier information through an easy-to-use graphical interface, simplifying the way you manage your suppliers.

Supplier Contract Management Software

Asset Management: Revnue automatically creates electronic records of your assets and links them to contracts and vendors. An integrated approach of tying your contracts to assets helps improve business decisions regarding investments, strategy, financial, compliance, reporting, and much more. You can track warranty and support for all assets and services in one place, get alerts, pull reports, and manage them better by associating with contracts.

Contract Management Financial Information

Artificial Intelligence: AI is the backbone of Revnue’s contract management capabilities. Proprietary Rev[AI] technology intelligently extracts metadata from contracts of all types, including images, photos, and pdf documents. It captures terms and conditions, asset information, supplier information, auto-discovers SaaS subscriptions, builds relationships, provides recommendations, and delivers contract intelligence that can help you maximize your business.

Advanced Reporting and Analytics: An easy-to-use interface with do-it-yourself capabilities makes it easy to create customized reports and pull the required information in seconds. You can set alerts on any parameter or event of significance. A real-time perspective enables proactive problem-solving.

Stages in Contract Management

Contract management involves more than just writing and approving contracts. It comprises steps that guide the procedure to completion. In fact, there is a lot that needs to be done after the contract is signed. Missing steps might lead to delays and errors, and even financial losses. Here are the key aspects of importance:

Create: The contract management platform must be able to include regular procedures with specific aims. Identifying the contract type and assigning tasks are the first stages. The planning process should consist of the company’s resources, goals, team members’ strengths and limitations, and obstacles and dangers.

Negotiate: The contract should represent the organization’s requirements and beliefs, fostering mutual trust. Negotiation follows the basic contract design. During the negotiating phase, line items might be modified or deleted.

Finalize: Before an agreement is finalized, several managers, departments, and even contractors must sign off on the details. Signing contracts between businesses is the last stage before execution.

Track and Renew: Once the contract reaches the execution phase, tracking terms and monitoring progress becomes vital through its lifecycle. The stakeholders need to continuously monitor the compliance details, renewal dates, penalty terms, etc., to ensure smooth execution of the contract.

Read Also: What is Contract Lifecycle Management?

Changes might happen once the project starts. Revisions must be appropriately handled and disclosed. Deadlines, audits, income, and expenses must be recorded and communicated with the team. Customizable standard software helps a contract operate smoothly. A good relationship and a concluded agreement are more likely when these five areas are carefully controlled.

Final Thoughts 

contract management software allows all team members to be on the same page when modifications are made. Budgets, schedules, goals, audits, and other documents are all live. Having real-time access to all project changes means quicker responses, less risk, and fewer complexities that might lead to missed deadlines, blunders, and even litigation.

With automated procedures and notifications, data solutions increase overall contract and project organization. Anticipatory issue solving gives a competitive edge and enhances project performance. A contract management platform should be a centralized system with easy searchability, visibility, and access. Revnue is the only such unified platform, on both the buy-side and sell-side, that offers end-to-end visibility across contracts, vendors or suppliers, customers, assets, SaaS, and services. To know more, do visit our offerings and FAQs page.

Read More: Top Contract Management Challenges

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What is Contract Intelligence and How Can it Help You?

Contract Intelligence Platform

Today, only 20% of businesses say automating tasks such as invoicing and contract validation is the second most crucial use of AI. However, one reason for the slower adoption of artificial intelligence in contract management is the lack of awareness and pervading confusion about what is contract lifecycle management and what is an intelligent contract.

Contracts need to be intelligent. When there’s such a huge volume of terms and conditions available about a variety of contractors in a number of contexts, it only makes sense that the data is utilized for purposes other than just management. Intelligent contracts channel artificial intelligence tools for analyzing contracts so that the contracts become valuable insights for organizations.

Download eBook: Contract Management Trends 2022

What is Contract Intelligence?

Contract intelligence can be termed as the next level of contract lifecycle management that involves generating insightful reports and analytics based on the existing data in the system. Contract intelligence that way is more than just contract management. It involves assessment, analysis, and insight generation of the contract life cycles that aid in future decision-making and bring about overall efficiency.

Intelligent Contracts are Amplified by AI

Today AI has transformed several aspects of a business, particularly the management and handling of corporate and legal contracts. An AI-powered contract platform is a wise investment because it not only reduces manual effort but also uncovers insights that may be buried deep within the contract verbiage. Following are some ways in which AI has amplified the power of contract intelligence:

# Contract setup: AI can be used to accelerate the process of setting up contracts through access to a template repository that lists clauses sourced from existing contracts across industries. A contract management software structures new contracts by combining the insights and references of similar documents or the nature of the contract. Each additional contract that gets added into the system further feeds new data and insights, helping the platform evolve as you go.

#Efficient obligation management: The whole point of intelligent contracts is being able to manage obligations with a few clicks. Obligations are mainly commitments that two parties make with each other and may take the form of service-level agreements (SLAs) as per industry compliance. This is also the area where most errors occur due to omissions or lack of renewals. AI empowers intelligent contracts platforms to easily spot obligations or terms hidden beneath complex legal or contractual language, ensure compliance while also building a long-term trust relationship between the parties involved.

#Better contract negotiation: Most businesses today cannot escape the complexity of contracts in terms of their nature, industry-specific requirements, type of vendor relationships, among many other factors. AI tools alert users towards terms and outcomes, assist in reviewing the terms or conditions, and ensure that past mistakes are not repeated, let alone committed in the first place. An AI-based contract management platform optimizes the process by applying best industry practices within an organization or a system.

READ ALSO: Contract Management Software for Small Businesses: A Valuable Asset

Deeper analytics to enable decisions: If a contracts management platform simply manages documents online without ever utilizing that information for generating insights, it is not the best business investment. Here’s where AI-powered contracts platforms make all the difference. Each contract has a wealth of information and future references – data that is sitting to be interpreted and utilized. Intelligent contracts platforms help you dig into your existing data, categorize it and uncover insights from each agreement. AI recognizes patterns and identifies hidden relationships within contract data. It helps anticipate potential bottlenecks and provides effective reporting for both parties.

Contract Management Search Functionality

How Intelligent Contracts Help

# Productivity: Artificial Intelligence has revolutionized the way we treat contracts. Now it is expected that digital contracts are intelligent enough to enable data insights leading to productivity decisions. 54% of executives say that implementing AI in their workplace has increased productivity.

# Uncovering hidden value: Intelligent contracts platforms such as Revnue help uncover hidden value within contracts or within the contracts management platform. Keeping a tab on contract terms or renewal dates helps businesses and vendors stay on top of their games, unearthing profitable opportunities.

Contract Management Alerts

# Simplifying day-to-day work: 79% of executives think AI will make their jobs simple and more efficient. This is especially applicable in terms of contract insights. Due to unified platforms such as Revnue, intelligent contracts involve the management of assets and services on both the buy-side and sell-side. This enables end-to-end visibility across customers, suppliers, contracts, assets, SaaS, and services.

Assets and Supplier Management

# Scalability: AI-powered contract management platform evolves with more data and contracts in the system. Such a platform monitors obligations proactively and protects companies from contract-related errors in the long run, learning from each slip-up. When a platform allows scalability, it encourages companies to explore different industry domains fearlessly and expand in other sectors.

READ ALSO: What Is Digital Contract Management

The Revnue Advantage

Considering the above benefits of a contract management platform, Revnue has created a platform that unifies several functions to deliver contract intelligence.

As an AI-powered contract management software, Revnue was built to scale in terms of size, industry vertical, or location. A legal firm will find it as useful, scalable, and customizable as a manufacturing company.

Some of its features that make this possible are –

  • Unified view across assets, suppliers, SaaS, and contracts
  • Powerful metadata extraction, including information from images, photos, pdf documents
  • Intelligent capturing of terms and conditions, asset information, supplier information, auto-discovery of SaaS subscriptions, and more
  • Multi-channel data ingestion, including email, scanning, and support for multi-format document types 
  • Custom fields that allow organizations the freedom to shape contracts as per industry standards
  • Advanced search, including NLP, delivers the required insights in seconds 

Leverage Contract Intelligence for Actionable insights

Revnue intends to be a platform to help and steer a business as much as to manage contracts. It provides insights that assist an organization in discovering opportunities within contracts, reducing costs, and maximizing value. The platform delivers this through easy visibility of critical contract terms and collaboration across your teams. A business may leverage its powerful API for enterprise-wide integrations, further ensuring easy access and growth.

If you think your organization is in a legacy or traditional business and may not be able to leverage AI-powered contracts software, you should talk to us.

Read MORE:

What Are The Top Contract Management Challenges Today
6 Tips For Smarter Contract Management
7 Industries That Cannot Do Without Contract Management

What Are The Top Contract Management Challenges Today

Contract Management Challenges

One of the most memorable contract management slip-ups of all time is recorded between 20th Century Fox and Hollywood film director George Lucas (Star Wars, Indiana Jones). In a bid to minimize the potential losses, 20th Century Fox signed over licensing and merchandising rights of the famous Star Wars movies to its director Lucas.

At the time, they were bidding on Lucas’ potential and of Star Wars, so they reduced his director’s fee in exchange for licensing and merchandising rights. Both the parties overlooked the contract management challenges or outcomes at the moment. None had worked out alternatives or had thought about contract management risks.

READ ALSO: How Intelligent Contract Management Can Help You Save Costs

Of course, Star Wars’ first installment became one of the highest-grossing films of all time during the 1980s before E.T., so the company did earn considerable revenues from the ticket sales. However, the success of the film made Lucas a multi-billionaire while slashing the chance of the company’s share in the merchandising revenues.

2018 Gartner report made some important observations:

  • Most document management systems and shared drives that companies use do not support contract reporting and analytics. This affects both performance and compliance.
  • Several business implement a contract management solution to just a handful of business functions, not all.  This affects both efficiency and finances.

A slight misjudgment or overlooking can absolutely alter the course of a contract. The question is – Can we leave a legal contract to a future chance (or mischance)?

In today’s world, the mistake that Fox made should be absolutely unthinkable. In the presence of AI-powered contract management software, future contingencies can be analyzed and possibilities worked out.

What are the main contract management pain points?

What are the contract management challenges and possible solutions? 

Let us find out in this brief discussion.

Top Contract Management Challenges

# Visibility Of The Contract

It doesn’t have to be, but a lack of contract visibility continues to cost companies dearly even today. Thanks to contract management software, contracts are no longer saved in hard copies. However, reviewing becomes one of the biggest contract management challenges simply because locating it and getting easy access is still a problem. Gartner admitted in its 2018 study that many of its clients did not know where their contracts were located.

An AI-powered cloud-based contract management software can instantly solve this problem as such software provides global visibility and access. These can be easily searched using names or keywords within the system without much hassle. The AI enables analytics that help in contract negotiation in the future.

visibility of the contract

# Keeping Up With Deadlines

A related challenge to the one above is failure to renew contracts within deadlines, a factor that affects a business’ bottom line. Imagine an online retail company such as Amazon or Alibaba that deals with hundreds of vendor contracts annually, misses just 10% of its renewals. The financial impacts will be immense. For small and mid-size businesses, the financial impact of missed renewals can be the difference between surviving and dying.

Download eBook: Contract Management Trends 2022

This specific contract management challenge has been doubled as most companies are managing day-to-day tasks in the pandemic-stricken world, with more than 80% of the staff working from home. In such a scenario, the most logical way to keep up with the deadlines would be to shift to a complete contract management solution that not only sends renewal reminders but also suggests ways to adapt to the new challenges based on the existing system’s data.

contract management alerts

# Slow Contract Turnaround Time

There are many reasons why a contract takes time to turn around. One of them, as we discussed earlier, could be just a lack of easy access. Monitoring the period of a pre-signature contract sitting at each stage of approval becomes crucial. There may also be unforeseen bottlenecks that may have delayed the process. The faster a contract gets approved, the sooner it starts applying, and the work begins.

Contract management software solves this problem by providing data for identifying the bottlenecks and providing tools to accelerate contract turnaround through automated nudges to people concerned. There are template libraries that help contract authors to draft contracts faster, collaboration dashboards eliminate the use of emails so all communication is stored and accessible in one place, and the business rules route the contracts to the person concerned or at the touchpoint where it is stuck.

READ ALSO: What Is Digital Contract Management And Why Do Companies Need It

# Contract Non-Compliance 

Globally, businesses operate in complex regulatory environments that include country-wise, area-wise, or industry-wise compliances. There are unique compliance challenges for manufacturing, retail, media, oil and gas, medical, Information Technology, or other non-government industries. Poorly managed contracts often result in legal actions against the company due to non-compliance.

For instance, a legal act that baffled several online businesses around the world recently was the European Union’s  General Data Protection Regulation (GDPR). It required companies to follow strict data-privacy rules down to their subcontractors. For several online retail companies, suddenly, the consumer data they already had collected and categorized on their system dashboards was illegal.

However, once the compliance details are uploaded, categorized, and fed into contract management software, it becomes easier to comply with the rules. A good contract management solution can automate the inclusion of some clauses in all contracts, access any contracts that may fall under new compliance easily on the dashboard, and execute bulk actions for them.

# Supply Chain Risk 

Most businesses today are global in nature in terms of their contracts with different people in the supply chain cycle. Maintaining steady, fruitful supplier relationships while managing all their contracts at the same time is a crucial contract management challenge. There are several issues arising in the supply chain, such as quality, security, maintenance, compliances, and so on.

supply chain risk

A good contract management solution provides a 360-degree view of the supply chain. The contract repository becomes a single source of facts about suppliers and their contributions and it helps monitor sourcing strategy compliance and supplier risk. Automated notifications further boost a smooth flow of supply, while visualization tools may provide intuitive insights into the entire supply chain cycle.

Final Thoughts 

In a prediction, Gartner had stated that AI would bring 30% efficiency to the contract negotiation and document completion process for businesses that deploy an AI-based contract management solution. AI is here because the complexity of contracts is a challenge that only an AI-powered tool can handle and manage today. If you wish to visualize how such a tool may benefit your business, do talk to Team Revnue.

7 Industries That Cannot Do Without Contract Management

Contract Management Benefits

The year is 2013. Facebook’s team is  trying to detect a breach of its contract with British consulting firm Cambridge Analytica. The latter had collected personal data of millions of users without consent, to be used for political advertising later.

What followed next was a series of negative publicity that damaged Facebook’s stock value, eliminating $150 billion of market value within 90 minutes of the earnings call. But that wasn’t all, the Federal Trade Commission slapped Facebook with a fine of $5 billion for the data breach, teaching the conglomerate a vital lesson in contract management benefits.

The year is 2021 and you are living in the age of AI (Artificial Intelligence)-powered software. If you are like Facebook trying to locate or manage or detect breaches in legal contracts on a daily basis, it is time to re-evaluate your priorities.

research by World Commerce and Contracting stated that poor contract management continues to cost companies 9% of their bottom line. Now typical profit margins hover around 10%, even cutting this loss by half may increase the profit margins by 50%.

Benefits Of Contract Management Software 

# 1 Improved compliance – brings accountability with restricted access to the actual documents 

# 2 Easy access – listing, locating and managing contracts is smooth due to cloud-based, AI-powered software, all contracts at one place 

# 3 Never missing renewals – an intelligent contract management system enables notifications on important dates of renewals 

# 4 Better efficiency – contract management software makes supplier and customer onboarding easier, reducing cost of maverick spending and supply risk 

Nearly every industry needs contract management assistance because by definition, most agreements between two parties are contractual in nature. However, there are certain industries that face peculiar challenges making contract management software particularly significant. 

7 Industries That Need Contract Management System 

# 1 Consumer goods/retail 

Retail companies dealing in consumer goods have regular active contracts with customers, vendors, suppliers, employees and other third parties. Some of the most important contract management benefits for retail companies are: categorizing of marketing agreements, intellectual property licenses, supplier contracts and their easy access at one centralized location. Such companies also need regular reminders about expiry of subscriptions from payment gateways among other license or agreement renewals. A good contract management system enables such companies to stay on top of the game. 

# 2 Manufacturing 

Manufacturers deal with hundreds of suppliers at several stages of production, packaging, warehousing and hundreds of vendors in terms of marketing and promotions. They need compliance management, obligations management and reminders, reports at several levels of production and supply chain and vendor management. A manufacturer benefits from good contract management in order to track any breach of quality or gaps in supply chains of raw materials or packaged goods. This may cut production and warehousing costs by eliminating gaps and inefficiencies. 

Read Also: A CFO’s Perspective On Contract Management

# 3 Healthcare 

Healthcare institutions such as hospitals and clinics are under unique country-specific regulations and compliances. For instance, in the USA, Health Insurance Portability and Accountability Act of 1996 (HIPAA)protects sensitive personal data of the patients by regulating hospitals. Therefore, security of data and its encryption is an added need for hospitals along with the usual contracts with vendors and other parties. Here’s where contract management benefits hospitals by providing HIPAA-compliant software that enables unique user identifications, different levels of access restrictions and other security features.

# 4 Construction

Construction projects incur several  hidden losses, one of which is failure of vendors to deliver as per contract. Keeping a track of timelines, change order management, credit management, contingency management are some of the add-on factors that need intelligent contract management software. Commercial construction companies are dealing with hundreds of suppliers and vendors at the same time in different construction projects, which becomes a nightmare in the absence of a good contract management system.

# 5 Technology 

Information Technology and software companies need AI-based construction management software, not in terms of the volume of contracts but in terms of their unique nature. Some IT companies take up full product development projects while also providing staff augmentation services to other companies. They have unique contracts related to intellectual property rights such as patents and trade secrets. The nature of such contracts, their tracking and their accountability may cost dearly if not managed well.

# 6 Media 

Media companies, by nature, are unique. There’s print and audio-visual media companies, there’s social networks, media applications, streaming services and so on. Such companies may benefit immensely from an AI-based contract management software since they are dealing with intellectual property contracts, media library subscriptions, artist contracts, vendor and supplier contracts, server subscriptions to name a few. 

# 7 Consulting firms 

Consulting firms deal with a variety of specialized fields and their experts. Their clients may also come from a wide variety of industries, each with a unique set of requirements and contract types. They are practically not only handling their client contracts, expert and vendor contracts but also handling their clients’ documents and databases. Thus, an automated cloud-based software that can organize, store and secure contracts is the difference between winning and losing for such firms. 

Read Also: What Is Digital Contract Management And Why Do Companies Need It

Common Contract Needs For The Industries 

The above industries can absolutely not function without an intelligent and thoughtful management of contracts. The stakes in these industries are higher and maintaining quality is crucial. Any violation of contracts at any level or lack of locating the right contract at the right time can incur heavy costs. 

Some common factors that can be smoothly handled just by an automated contract management software are –
  • Vendor and client contract management
  • Obligations management
  • Compliance tracking 
  • Reminders of expiry dates/end of contracts
  • Reminders of license renewals 
  • Smart categorizing and management of data 
  • Reminders of due tasks in due time 
  • Reporting options – quarterly, weekly etc 
  • Activity audits and reporting 

Final Thoughts

It is vital, however, to understand that often such software is reduced to just document management that does not manage contracts intelligently. A good contract management software is a complete and intelligent system that provides easy access, alerts and efficiency in managing several contracts. In fact, an ideal system not only manages contracts but also leverages intelligence from the contract documents and data and brings about operational efficiency. We encourage you to talk to Revnue Team and find out for yourself what works best for your business.

What Is Digital Contract Management and Why Do Companies Need It?

Digital Contract Management

Businesses revolve around contracts. And contracts pile up as organizations grow and the number of transactions increases. That’s when companies realize they need a process for storing, tracking, analyzing contracts to reduce financial risk and maximize operational and financial performance. A digital information system that saves and manages a company’s contracts and other contract-related documents is referred to as digital contract management software.

Managing contracts is a complex and challenging job for any company. A simple contract expiry query, for example, or the attempt to find the latest contract edition, may take a lot of time and create unnecessary delays in transactions. According to one survey, ineffective contract management platform could cost companies 9% of annual revenues in missed savings opportunities.

The system’s goal is to improve contract life cycle monitoring, from contract negotiations to ensuring compliance. The system also offers information on the status and progress of contracts so that the company’s commercial operations, including risk management, can be managed as efficiently as possible.

 

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Digital contract management system offer critical insights into contract details, enables collaboration between parties, and saves time and money while posing minimal risks. That’s the key reason why businesses are moving towards intelligent contract management system to address these obstacles and increase workflow performance.

Here, we will highlight the importance of having a digital contract management platform like Revnue:

 

Reduce Approval Times

Digital Contract management software automates the end-to-end contracting process. Our Smart Workflows enable collaboration, making it easy for you to manage reviews from multiple people while using the power of AI to improve productivity across your business. You can easily search all contracts and build a dynamic workflow to-do list. You can also use this information to send email notifications to responsible parties, reminding them of the next steps or defining escalation procedures. 

Get Better Access To Your Contracts

Unlike paper-based contract management system, storing all files in one consolidated digital repository ensures maximum enforcement and monitoring. Revnue enables you to manage all contracts in one place through an intuitive, easy-to-use interface and get instant visibility into everything that needs your attention. Our Smart Repository makes it easy for you to upload contracts, extract meaningful information, and report on key metrics.

Download eBook: Contract Management Trends 2022

Improve Audit Preparation

Most digital contract management software provides features like audit trails that give you instant access to your entire contract history. This helps you maintain an accurate contract history and a comprehensive audit trail for third-party audits or internal policy enforcement. You can build reports based on contract metadata or create custom compliance reports to prepare for audits. Revnue’s AI-powered, NLP-based reporting module helps you quickly find what you need using natural language instead of the traditional way of searching via filters.

Never Miss Contract Due Dates

You can raise renewal awareness by automatically archiving contracts when they expire and sending out reminder notices based on the specific rules. Contract renewal is low-hanging fruit for a business, but it’s also the most often overlooked opportunity. You can configure alarms using default or custom settings, such as recurrence, with a digital contract management software. These alarms will not reset until the assigned team member has completed the next milestone, ensuring progress against the renewal date.

Ensure Contract Fulfillment

Suppliers are an integral part of your contract management ecosystem, but it is not always easy to track the data you need to make sure all clauses in the contract are fulfilled. Revnue’s integrated supplier management capabilities help you look at suppliers alongside contracts so that you can manage them more efficiently and ensure contract accountability.

Read Also: A CFO’s Perspective On Contract Management

Improve Document Management

No more eye-sore filing cabinets or outsourced file storage! Employees can use Revnue to scan paper documents directly into the system, ensuring that all relevant documentation for the agreement is accessible from a single location. They can also import electronic contracts of any kind and view their status and other related information for each one. This saves a lot of valuable resource-time as well as eliminates the possibility of manual errors.

Takeaway

Even though contract management is an integral part of every company, many businesses still use obsolete, inefficient paper-based contract management or a subpar digital version. This blog illustrates why you should move to a better, more systematic, and automated digital contract management system

Using contract management software like Revnue, you can significantly minimize the amount of time and money it takes to handle and execute all of your contracts. With Revnue, you can monitor, track, and automate every step of your contract lifecycle, whether you’re a small, medium, or large company. Learn more about how our contract management platform might benefit you, send us an email, and we’ll reach out to you in no time.

How Intelligent Contract Management software Helps Save Costs

Intelligent Contract Management

Contract management has always been a top priority for businesses, but managing them efficiently and intelligently, without putting in hours of effort, is something that many still find challenging. In this article, we will cover some of the ways in which you can save costs through an intelligent contract management software and how Revnue helps you in the journey.

Contract Sprawl Results In Missed Opportunities

As businesses grow, both in the number of people and the number of products/services bought and sold, the number of contracts also grows exponentially. Soon enough, contracts end up in both expected and unexpected locations such as shared storage, personal desktops, email conversations, or across multiple disparate software systems. 

Contract sprawl is when your contracts are spread all over, making it increasingly difficult to extract information such as renewal dates, deadlines, costs, slippage, and more. As a result, organizations frequently miss opportunities to save costs and optimize their contractual decisions.

According to World Commerce & Contracting, organizations lose approximately 9% of their annual revenues because of inefficient contracts.

Unlike other documents, contracts are complex. Extracting contract data and making sense of it is both difficult and time consuming. This problem becomes systemic as organizations grow and leaders and teams change.

A challenge like this requires a more sophisticated solution that leverages intelligence into the solution and produces actionable results and outcomes.

The Bigger Challenge

Additionally, the lack of a unified contract management system presents an even more difficult problem: having a 360-view of all the contracts across the enterprise through a single pane of glass and a single source of truth.

According to research firm Aberdeen, 85% of companies use manual systems to track their contracts. 

“Getting A Holistic View Is Difficult If Contracts Are Tracked Manually, And Live In Islands Of Information Across Teams, Departments, Suppliers, Assets, And Services.”


As an example, during digital transformations, one key decision that organizations face are decisions on asset and SaaS management – whether they should renew asset warranties with OEM vendors or reduce costs and go with third-party vendors.  Similarly, decisions need to be made around rationalizing SaaS services and licenses. These decisions often take into account alignment with growth plans, overall strategic decision making, and timing (e.g. fiscal year, ongoing projects, customer commitments, etc.)  Decision making becomes difficult if the contracts do not integrate with assets and SaaS services in question, and can result in decisions based on assumptions rather than concrete data sets.

“An Intelligent Contract Management System Like Revnue Provides A Unified View Across Contracts, Integrated Assets And Services Including SaaS Services And Suppliers.”
– Customer A


With Revnue, not only can users look at the contract clauses and penalties as part of your decision-making process, but they can  also quickly see what assets and services were exchanged for the contract. This level of visibility can be transformational as businesses are not just optimizing contract terms and costs, but also what lies inside the contracts – that is the assets and services that were exchanged.

Save Costs With Intelligent Contract Management Software

Every contract has a great deal of intelligence embedded inside it. You can save a significant amount of dollar value by extracting this intelligence and delivering it to the decision-makers at the right time. 

“According To A Goldman Sachs Report, Companies Using A Contract Management System Can Reduce Annual Contract Management Expenses By 20 To 50 Percent.” 

With the right data in their hands, business teams can make better and faster decisions as well as save time spent in gathering and organizing the required information. That’s where Revnue comes in.

Read Also: A CFO’s Perspective On Contract Management

Revnue is an AI-powered intelligent contract management system that helps you manage your contracts efficiently and uncover hidden opportunities. Advanced AI-based models pull metadata from your contracts and build correlations between the metadata and different contract clauses. This helps you understand your contracts better and consolidate saving opportunities hidden within the contracts.

Right-Size Assets And Services

Another key component of digital transformation is reviewing and right-sizing your contracts, assets, and services. You can optimize your assets and make decisions such as whether it is better to renew OEM warranties which are expensive for certain assets like storage systems, servers, etc., or go in for third-party warranties which are more cost effective. This is a difficult undertaking if your organization lacks a centralized contract location. 

“The Ability To Monitor Contracts In A Central Intelligent Repository Helps Optimize The Entire Contracting Process, From Acquisition To Contract Execution. With The Rise Of SaaS Services And Subscriptions, You Can Right-Size SaaS Subscriptions By Optimizing The Number Of Users Or Subscribers For A Particular Service.” 

Sometimes it gets difficult to assess whether you really need all the service components in the original contract. Intelligent contract management software helps you tie your assets to contracts, providing visibility into those details and enabling more informed decisions. Advanced analytics and intuitive reports make it easy to find the information you need to make decisions. It helps you streamline your assets and services, amend contracts, and cancel unnecessary ones.

Download eBook: Contract Management Trends 2022

Mitigate Risks

Without a centralized system, it becomes easy to lose sight of when key renewal dates are coming up or what represents an acceptable risk. Consider this example: a company has an agreement with a key vendor for critical infrastructure components. The contract expires and neither the infrastructure team nor the accounting team realizes the lapse. A subsequent outage and downtime affects multiple key services, resulting in large penalties and now owed to customers.

“Intelligent Contract Management Can Help You Save A Lot Of Money By Managing Risks Associated With Your Contracts. Alerts And Notifications For Contract Renewal Prevent Missed Deadlines And Increase Overall Compliance Posture.” 

You can avoid the headaches associated with penalties resulting from contract clauses, notice dates or auto-renewals. With a whole portfolio of contracts across the enterprise, imagine the impact when every team in an organization is aware of the risks and opportunities associated with each contract. The cumulative effect of these can lead to significant savings at the enterprise level.

Read Also: What Is Digital Contract Management & Why Do Companies Need It

Save Employee Time

According to a report by Goldman Sachs, using a contracts management system can reduce the average number of hours spent on contracts by 20%. Goldman Sachs estimates that companies spend almost 5% of their revenue just to track agreements after a contract is signed.

“Intelligent Contract Management Software Helps Save Expensive Employee Time That Goes Into Tracking And Managing Thousands Of Contracts That Exist Across The Enterprise.”

It brings in more efficiency in the process and the saved hours can be used to perform other higher value tasks. Besides, it eliminates critical errors due to manual processes. Workflows can be automated, reducing the time it takes to review, sign, and execute the contracts. Additionally, optimized workflows enable transparency across departments and eliminate internal communication issues. Besides, you can use pre-defined templates to create new contracts. This helps create better contracts, without spending hours of effort on creating from scratch.

Smart Contracts Are The Future!

The use of AI and ML technologies in contract management is transforming the way enterprises manage their contracts. Intelligent contract management system helps you access and capitalize on your contract data in ways that were simply impossible before.  

If you want to learn more about how Revnue’s Intelligent Contract Management and how it can help you save costs for your business, connect with us now.

A CFO’s Perspective On Contract Management

Contract Management for CFO

As CFOs manage everything that the company buys and sells, they have to deal with hundreds and thousands of contracts on a daily basis. They are not only responsible for managing costs and improving operational performance, but also drive innovations and play an active role in business strategy. And for this, they need the right tools. Digital Contract Management has seen a lot of traction in the last couple of years. Besides, the introduction of AI and ML-based technologies in contract management has made it easier to make sense of the most complex contracts and keep track of what matters.

In this article, we will cover some of the challenges that CFOs face in contract management and what they really want to see.

Cash Flow Management

Managing cash flow is one of the prime responsibilities of CFOs. Inefficient contract management and lack of visibility into details cause poor decisions and a lot of headaches. Let us take the example where a CFO is trying to manage cash flow in times of a crunch or when there is no excess cash balance. He/she wants to decide on which vendors they can pay late to balance the cash. These decisions become difficult as each contract is different. Some contracts have penalties on late payments, some charge interest after 7 days of being late, while others charge after 45 days of being late, and so on. As the number of contracts increases, getting a consolidated view of which contracts are due, which ones can be paid late, which have a penalty, and so on, is a major challenge.  

What a CFO wants – Accurate on-demand reports on buy-side and sell-side contracts that help them manage their cash more effectively.

Read Also: What Is Digital Contract Management & Why Do Companies Need It

Multi-Party Workflows

When multiple parties need to work together to review and finalize contracts, managing the contract workflow becomes challenging. The back-and-forth cycle of reviews and approvals introduces discrepancies, delays, and wasted effort, even in those cases where no external parties are involved. The process gets even more tricky when these reviews have to be coordinated with external parties, parent companies, subsidiaries, partners, and other stakeholders. Managing comments, tracking changes, monitoring workflows manually introduces inefficiencies that prove costly for the company. 

What a CFO wants – Efficient workflows that make it easy to work with multiple internal or external parties and shorten turnaround times.

Controlling Costs And Renewals

CFOs often find that over time it becomes easy to lose track of the contracts and pay for assets and services that may not be needed any longer. In today’s world of SaaS tools, it becomes all the more difficult to find out how many SAAS tools are actually in use. Often these services auto-renew, and enterprise pay without knowing who is using them. Sometimes team members who originally requested for the service leave the company or move to other projects, but the finance department does not have visibility into these changes. Though these costs may not be huge when looked at individually, the cumulative amount could impact costs significantly. If the finance team had advance information on expiry dates, they could get the business team’s confirmation on whether they are still using those services or need the number of users they are paying for. This would help control costs and trim unnecessary expenditures. 

What a CFO wants – Timely alerts and visibility into auto-renewals to ensure that renewals do not happen before the company is notified and evaluation workflow is followed.

Download eBook: Contract Management Trends 2022

Integrated Intelligence Across Systems

When CFOs are making decisions on contracts, they often need to integrate contract information with other applications that are used in the company. For example, if there are contracts that have no interest accruing clauses on late payments or have a clause for 30 days late before interest starts, they could decide to delay the payment by a certain number of days. The ability to automatically tie those vendors with their existing AP balance in an application like NetSuite would be extremely beneficial. Another example could be when the CFOs are looking at employee contracts for some analysis around stock options. They want to search through contracts to find out which employees have accelerated vesting schedules and automatically integrate with Carta for review of Employee Stock option grants. There can be numerous such integrations within an enterprise that make it easy for CFOs to optimize their decisions.  

What a CFO wants – The ability to do an intelligent search on contracts and integrate with other data sources/systems for decision support and enhanced analysis.

Vendor Negotiations

After getting acquired by another company or in the case of a big company with subsidiaries, information on contracts owned by the parent company/subsidiaries could be extremely helpful for CFOs during negotiations.  This information could also be helpful at the supplier/vendor end. Knowing which vendors are owned by a common company could strengthen the negotiation position. For example, Google owns lots of companies and brands that they may not be aware of before they start their negotiations. A list of Google-owned companies along with the spend could help negotiate better-discounted terms.

What a CFO wants – An integrated view of contracts with vendor information that facilitates faster and better negotiations.

Integrated Asset Management

To control costs, CFOs need to keep a track of assets and how much is being paid for each asset. It is important to validate assets and their value against what is put in the books. These assets could include anything ranging from furniture, machinery, equipment, devices, to third-party goods and services. Besides, they need to manage timely payouts and collections. However, it becomes challenging to make decisions on which assets need to be written off, which need replacement, etc., without getting details of the associated contracts. Looking at contracts and assets in isolation can never provide a complete picture. 

What a CFO wants – Ability to tie assets to contracts so that they can optimize financial planning, as well as control and safeguard assets through proper documentation.

Mechanics Of International Contracts

While working with international markets CFOs often face challenges as there are a lot of inconsistencies in the way different countries deal with contracts. For example, some countries may not allow digital signatures while others do. As a result, international signing becomes an issue. There are numerous such issues that CFOs face while working across geographies.

What a CFO wants – An intelligent contract management system that provides visibility into country-specific details and supports corresponding workflows applicable to each country.

Due Diligence Processes

Often during mergers and acquisitions, CFOs have to provide all contracts or a sample of contracts in a data room for the buyer. Working with a spreadsheet on contract metadata that was built but is not up to date and probably does not have all the fields does not help. Besides, manually reviewing hundreds and thousands of contracts to find the best samples is very painful.  

What a CFO wants – Ability to get analysis on contracts so that they can decide which ones to put in the data room for due diligence, without the need to scan them manually.

AI-Powered Digital Contract Management

Traditional methods of maintaining contract information in spreadsheets and shared folders have already exposed its flaws. When contract management becomes a one-time effort as opposed to being a continuous project, there is always the challenge of missing contracts and missing fields. However, the simple digitization of contracts does not solve these problems. A bigger challenge is to extract meaningful information from the contracts and then correlate this intelligence across the entire ecosystem associated with the contracts to drive optimizations and strategic decisions. Revnue is the only AI-powered digital contract management platform that provides a consolidated view across contracts, assets, and suppliers, enabling CFOs and financial leaders to save costs and run their business more efficiently.

We wish to thank Apurva Desai, CEO of Sarvian, Inc., ex-CFO of VuClip, for providing valuable insights that became the source for this blog.