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Buy Side Contract Lifecycle Management (CLM) for Different Personas: One Size Doesn’t Fit All
Contracts are often authored and executed in silos by different business units such as procurement, finance, and legal, without standardized templates or risk controls. A CLM solution can help business teams come together on a single platform to collaborate across the different stages of contracting – from authoring to negotiation and execution. Get the details here!
Contracts are an integral tool in your organization’s repertoire; a beacon to navigate through the complex business relationships and their ecosystem. Organizations are dynamic entities, making the contract lifecycle management (CLM) a complex process. Contracts span across the organization, with multiple stakeholders involved.
Ideally, every business function, primarily legal, finance, and procurement, plays a role in drafting, negotiating, and managing buy side contracts. However, the inherent challenge is that when contracts are authored by a number of stakeholders using non-standardized legal language and templates, it often leads to missing clauses and deviations from the preferred enterprise position. How do you address the needs of these stakeholders?
CLM for collaboration between personas
Contract lifecycle management in any organization must be a collaborative process. The legal team is responsible for drafting and executing the contract. However, they cannot work in isolation, and require insights on suppliers’ credentials and background, historic insights on past performance, risk factors, and several other criteria. These insights are provided by the procurement teams, who primarily interface with a host of vendors and contractors. Procurement teams also play a critical role in controlling the organizational spend, with the objective of enhancing efficiencies, reducing redundancies, and optimizing costs. Cumbersome processes, off-contract spend, and inaccuracies in contracting with these entities can have a cascading effect on other business functions. The finance function also has a pivotal role in determining the minimum pricing, payment terms, and the associated risks. Hence, efficient collaboration between the finance, legal, and procurement team is important during the negotiation phase.
The need to collaborate extends well into the post-signature stage because performance insights and obligation compliance are key aspects that must be measured. Legal teams will require performance data to negotiate contract renewals. Finance teams require insights to analyze the spend data for budgeting, forecasting, and invoicing.
SirionOne: Making contracts smarter
A robust CLM platform such as SirionOne can help author new agreements with agility, enabled by guided contract assembly and enterprise-approved clause and template libraries. With SirionOne, legal teams are able to transform contracting by automating contract processes, speeding up legal approval cycles and unlocking deep contract intelligence to minimize risk, ensure compliance and create stronger, smarter contracts. Sirion’s AI helps them analyze contract drafts with suggested terms and missing clauses and identify deviations. For the procurement function, the platform offers you complete visibility and deep contract intelligence into your vendor agreements that helps you author and negotiate smarter contracts while automatically monitoring vendor performance, identifying risks, and unlocking insights to strengthen your supply chain.
The finance team, the veritable glue that holds the contracting process together, can transform financial outcomes into commercial engagements by bringing together contracting, performance and invoicing processes. Approval processes, financial visibility, and insights for negotiations are enabled with deep intelligence into spend, compliance and revenue.
SirionOne enables these disparate personas to collaborate and work towards effective contract management. SirionOne helps organizations of all sizes transform how they create, manage, and measure contracts. We enable businesses to meet contract management needs with seamless functionality across the complete lifecycle of a contract – from authoring and negotiation to AI-powered legal review, automated risk assessment, and execution. The platform enables varied business personas including legal, finance, and procurement to minimize interdependencies, gain efficiency, and redefine how terms and obligations are managed across the lifecycle of a contract, till renewal or expiry.