How CLM can solve Transport and Logistics issues ?
Aug 07, 2019 By Prasad Varade
Transport and logistics industry has seen immense growth in the last decade due to the adoption of e-commerce and globalization. To sustain in this uphill environment, service providers face the need to dive into digital transformation and go through unparalleled disruption by transforming technology as well as processes inherent in the legacy systems. One process that is inherently inefficient when done manually is contract lifecycle management (CLM). This combined with the need to show compliance and regulations with federal, state, local, and international laws is moving organizations like yours to seek a solution that will simplify and streamline the contract lifecycle process for their entire organization.
1. What is the current status of a contract -is it drafted, reviewed, approved, signed or If its stuck somewhere, If so then where and with whom ?
2. Which contracts are about to expire ?
3. Where is the contract I need, and is this the current version - and what terms we have negotiated in negotiation phase ?
4. Is the contract I am drafting using approved language and terms ?
5. What contracts have clauses and terms that pose a higher level of risk ?
6. Can I have all contracts of products/services we are purchasing, at particular location which are valued more than 20 Lakh and are going to be auto-renew in next quarter ?
Being unable to answer these questions like opens the door to some serious financial loss and business risks like,
• Lack of compliance, which can lead to penalties.
• Missing expiration dates that result in auto- renewal.
• Losing contracts or associated documents due to broken links, file renaming, indiscriminate filing, or employees leaving.
• Delays associated with tracking down documents, verifying versions, and searches for data within documents.
• Loss of revenue due to poor contract governance and performance monitoring.
Contract authoring and version tracking:
Contract management solution ease the authoring process by using pre-approved templates and clauses. Once the contract is drafted, the negotiation process get starts and number of contract versions get created in negotiation. This will cause difficulties to track the most recent version of contract and increase the risk of sending the wrong documents for reviews and approvals. Version management system helps you to always be keep updated on current version and quickly identify the terms which are negotiated in the previous version with the use of inbuild version comparison tool.
Automate Contract Life-Cycle:
CLM solution will automate different stages of contract life-cycle from drafting the contract to get it reviewed, approved and signed through the integrated electronic signature technology. CLM solution gives you the clear picture of contract current status and if it stuck somewhere then why and with whom. It reduce the contract lifecycle time by 80% and get the deal closed faster.
Maintaining centralised searchable repository:
Centralization is the backbone of your contract management process, supporting and enabling all the other areas of contract management. Without a centralized location for documents and data, important functions such as reporting and analysis become nearly impossible. Searching for a specific contract from vast, dispersed contract repositories can be a major pain-point without a proper system in place.
CLM software enables you to establish a centralized electronic repository for all of your contracts, making them easy to manage and secure. With its advance filter functionality you can filter out the contracts the way you want. Once your contracts are centralised you can establish a strong accessibility criteria and manage who can have access to the contracts and with what permission.
Streamline performance monitoring:
Contracts are at the core of the T&L industry and often with multiple high-value contracts running simultaneously. Tracking the performance of these contracts to ensure maximum returns is crucial for all organizations. With CLM solution you can set performance monitoring task and milestones for contracts and receive notification when the event triggered and make sure the agreed deadlines are meets and terms and conditions are followed.
Good Contract Development and Management could improve profitability by the equivalent of massive 9% of annual revenue
- International Association for Contract & Commercial Management (IACCM)