Automate Contract Life Cycle Management

Legal departments are responsible for managing the entire life cycle of complex contracts, from their creation to their closure, through the coordination of means and processes necessary to control financial and legal risks.

Lawyers must therefore bring productivity and high added value to organizations by offering them a transversal and global vision of the contractual life cycle.

Corporate contract management, a significant source of risk

Paradoxically, the ability to control risks and commitments associated with contract management is not ensured in 2 out of 3 companies. 10% of active contracts are simply lost, while 60% of supplier contracts are automatically renewed without prior analysis and decision (Aberdeen). Yet, the consequences of inefficient contract life cycle management are multiple:  

• Increased procedural risks,
• Cost inflation,  
• Non-compliance,
• Increase or non-respect of the contracting deadline

Factors of poor corporate contract management

Moreover, the volume of contracts is important since 2/3 of organizations manage more than 1000 contracts. The factors linked to poor contract management are numerous:

• The heterogeneity of contracts (types, languages, presence of annexes).
• The format in which the contract is saved in image format, which makes it impossible to search.
• The time required to review contracts.
• The poor follow-up of contractual deadlines.
• The manual process is often time-consuming, inefficient and error-prone

Corporate lawyers need to have a global vision of the company's contractual relationship with its customers, suppliers and partners. Implementing an efficient contract management system that covers all the different stages of the contract life cycle through automation and digitalization is now more critical than ever.