The Sirion Blog
NEWS, IDEAS, AND INSIGHTS FROM THE SIRION TEAM
Paperless, Low Touch, Smarter Contracting in the Age of AI-led CLM Platforms
Contracts are the foundation through which expectations from both parties are set. In the age of AI, companies can monitor and manage contractual obligations, measure compliance till fulfilment, and analyze performance to maximize value realization for their business, through smarter contracting. We tell you how!
An organization is a complex archipelago of partners, suppliers, customers, and of course, employees. For it to run efficiently, it needs to outline the expectations and deliverables to and from each of these disparate identities. Contracts are the foundation through which these expectations are clearly articulated. However, managing contracts – from drafting, negotiating, reviewing, and executing – is a time- and cost-intensive process, especially considering that a typical Fortune 1000 company signs and maintains between 20,000 to 40,000 contracts. Smarter contracting can help manage contracts more efficiently.
Too Many Touch Points, Too Little Control
Organizations in industries such as utilities, manufacturing, retail, and so on can have as much as 90% of their annual revenues represented through contracts with suppliers. Yet, the traditional contracting process is largely manual, error-prone, and fails to offer the requisite visibility into commercial relationships and outcomes.
Typically, legal teams assemble first drafts using legacy tools and without any insights into the enterprise’s contracting history, past performance data, and possible risk elements. Completed drafts are handed over to the procurement team, which then engages in a lengthy exchange over email to have their inputs incorporated. Without a strong version control mechanism and a standard contracting playbook in place, the final draft could still contain deviations from the organization’s preferred position, missing clauses, and other such issues. Without a contract workflow and clearly defined processes, key stakeholders lack the visibility to review critical obligations and compliance conditions. In turn, it could expose the enterprise to risks, regulatory issues, budget overruns, poor delivery, and several other roadblocks.
Conventional contracting tools are not equipped to meet these challenges and often act as point solutions with partial functionality, inflexible design, limited automation capability, long implementation cycles, and unclear ROI.
Transition to Low Touch Contract Lifecycle Management
The platform offers out-of-the-box connectors to seamlessly plug into the existing enterprise tech stack and help businesses consolidate and digitize their contract portfolio into a centralized cloud-based repository. This not only enables business teams to gain visibility into existing and past commercial relationships but also helps extract intelligence to:
- Offer unparallel visibility – As a single source of truth for commercial relationships, the platform will enable enterprises to gain 360-degree visibility into T&Cs, expected outcomes, change history, renewal and expiration dates, and more.
- Enable self-service authoring – Teams can leverage historical insights and enterprise-approved clause and template libraries to author new agreements with just a few clicks using standardized language. As a result, time-to-contract is significantly reduced, and agreements are authored with built-in risk controls. Moreover, as this technology-led contracting process matures, the platform’s AI engine will be able to help enterprises draft stronger, smarter contracts by offering prescriptive insights, which in turn will help users choose the right legalese to further reduce risk exposure.
- Streamline negotiations and signature – Business units, such as procurement, legal and finance, can come together on a single platform to collaboratively redline contract drafts, which in turn reduces turnaround time and establishes clear visibility into iterative changes. Configurable workflows and conditional triggers further simplify the approval-to-signature process, and depending on the complexity of a contract, it can automatically be moved through condition-based approval loops or sent straight through for eSignature.
- Ensure smarter contracting – SirionOne’s AI is a foundational component of the platform, and it is designed to make contracting increasingly seamless over time. The underlying AI core is self-learning, which means that it will keep feeding on user feedback and actions to build a ‘policy playbook’ and use it to offer guidance around language selection during authoring and negotiation with the goal of reducing risk. This playbook, along with the system’s AI, will offer prescriptive suggestions to ensure that every necessary risk control is implemented before a contract is signed.
Close the Gap, Ensure Your Contracts Perform Better
Once the contract is successfully and seamlessly executed with minimal touch points, supplier management and obligation management are just as critical. SirionOne helps enterprises transform how they manage contracts and supplier performance, audit invoices, and streamline buyer-supplier collaboration on a single, integrated platform that acts as a ‘transparent pane of glass’ between both parties. With SirionOne, you can also monitor and manage contractual obligations, measure compliance till fulfilment, and analyze performance to maximize value realization for your business. SirionOne enables you to control your contractual obligations by ensuring that your clients, suppliers, and legal teams are on the same page. Our platform helps you achieve this by enabling your team to centralize and simultaneously view information, analyze and visualize risk, and reduce the impact of missed obligations, deliverables, milestones, and more.