From Liability to Asset: How Smarter Contract Operations Drives Procurement Success
Whether you are leading your company’s supply chain or procurement organization, your approach to managing contracts may be causing unnecessary headaches and making you vulnerable to errors and oversight. Traditional methods require time-consuming manual back-and-forth work with legal, chasing approvals, slow negotiations during the pre-signing stage, and constant battles with compliance. The amount of time and emotional energy just getting through the contract process can be paralyzing.
After signing, comes the backlash from mistakes if the contract is missing the right language or was not put in the right jurisdiction. Even when you get everything right, you must be diligent in making sure you do not overlook a renewal date so that you do not have to pay for the unwanted renewal of an unnecessary contract.
Automation Alone Is Not the Answer
One might think that technology alone could be the answer. A surge in new technology interest and VC investment has led to more than 200 Contract Lifecycle Management (CLM) solutions on the market that address one or more phases of the contract lifecycle. This abundance of options leads many organizations to think that there must be a SaaS product that will solve their contract operations headaches. Unfortunately, none of these solutions delivers a comprehensive, stand-alone approach. Many organizations learn too late that contract operations cannot be effectively managed with just a simple software solution. As a result, there is widespread dissatisfaction, prompting businesses to routinely switch suppliers.
Combining AI-Powered Software with People and Expertise
The good news is that artificial intelligence (AI) supported by contract expertise and a team of people can change that. This powerful combination, known as “combined intelligence,” is a game changer, reshaping how procurement contracts can and should be managed to save time, money, and the mental health of your entire team.
Artificial intelligence makes procurement smarter by automating repetitive tasks and bringing visibility to signed contracts. AI-powered software can read and understand contracts in seconds, offering expert guidance to quickly flag risks and provide smart negotiation tips before you sign. After you sign, software keeps an eye on compliance, tracks obligations, and issues notification reminders of important dates and deliverables like auto-renewals. This proactive approach ensures nothing gets missed.
While AI saves time and improves consistency, it cannot be trusted to do it alone. There must be a human involved to ensure the data can be trusted. Software alone will not solve for messy data and cannot be relied on when it comes to expense-generating contracts. However, combined with human oversight and contract expertise, it is a panacea.
Determining If Your Organization Would Benefit from A Contract Operations Partnership
Some organizations may already have a manageable contract workload, but if you share any of the concerns described above, you may want to ask yourself the following questions to determine if a contract operation partnership could benefit your organization.
- Is your legal team overworked? How much time does your team spend managing contract operations?
- Does your process for approaching contracts lack sufficient budget and resources?
- Has your organization missed a renewal deadline or uncovered a contract error in the past year?
- How much time does your team spend administering contract systems in a given month?
- How much do you spend on outside legal counsel to help with contract management?
LegalSifter's Contract Control Program: Flexible Contract Operations for Procurement
At LegalSifter, we combine our proven AI-powered software, contract expertise, and team of experts into a managed services solution for procurement teams. Using AI with managed services offers a powerful combination for reviewing and managing contracts. AI enhances the service by performing repetitive tasks in a fraction of the time that it would take a person. The team focuses on data accuracy to ensure that what is captured is enough for you to make the best decisions. All this work is backed by a 99% accuracy guarantee.
When it comes to managing contracts, getting the timing and tools right makes all the difference. Whether you need help before you sign a contract to dot the I's and cross the T's, or after you’ve signed to keep everything on track, LegalSifter has structured our Contract Control Program to be as flexible as you need. With straightforward pricing and the ability to easily change from self-service to full-service, our approach simplifies your procurement process. The result is that you are able to focus on the big stuff and worry less about contract details and workflow.
