What is contract management
Contract management, also known as Contract Lifecycle Management (CLM), involves the management of contracts throughout their lifecycle. The contract management lifecycle encompasses processes such as drafting contract templates, contract signing, execution, generating visual reports, and archiving.
How does an HRM platform help in 4Rs management?
We have identified three challenges that most people face with paper contracts in today’s complex business environment.
Every contract has distinct legal terms, agreements, management specifications, and requirements that must be carefully considered during execution. However, in today’s business environment, paper-based contract management methods are deemed insufficient for managing such complex processes as contract drafting and approval at a level that ensures business effectiveness. Hence, digital contracts come into play.
Prolonged approval cycle
A standard contract approval process often involves managerial, departmental, and directorial levels. This necessitates the use of digitalization, as paper-based contracts require contracts to pass only after they have been physically approved by previous personnel, leading to time-consuming delays. Therefore, the longer the approval cycle, the more time it takes to complete tasks in a business-effective manner.
High risk exposure
The lack of necessary approval decision-making information often exposes transactions to risks. Paper-based contracts often face difficulties in having specific authorized signatories present in person, or even experience tampering or misuse of stamps during the execution process. Other notable risks include scattered financial and performance-related information due to a lack of integration and coordination during the contract execution phase. The inability to monitor the contract execution process and respond in an agile manner also poses unforeseen risks to the business.
Benefits of contract lifecycle management
Easily create new versions with your own edits on pre-built contract templates. Control who can edit templates, highlight key points, and compare versions.
Foster smooth collaboration and agreement between internal and external departments.
Intelligent-based audit compliance
Develop a self-defined approval matrix to streamline the approval workflow, allowing departments to work collaboratively while performing their respective duties.
Achieve full-scale digitalization, ensuring standardized contract approval through personal identity verification during the digital stamping (e-Seal) and digital signature (e-Sign) processes. Leverage digital documentation for quick retrieval and reduced hassle.
Automated risk control and monitoring
Utilize smart, intelligent technology to monitor potential contract-related risks. Benefit from built-in automated reminders for overdue contracts and changes in the credit of the counterparty.
Integration with business systems
Ensure transparency of contract terms and regulations to avoid ambiguity and expedite the contract lifecycle for project delivery, procurement, and production operations. Maintain control over payments by adhering to the contract terms.
Access detailed summary reports on signed contracts, contract execution, and risk monitoring. Visualize data in collaboration with business, finance, contract performance, and fund payments. Customize reports to your specifications.