The Essential Checklist for Sell-Side Contract Management

June 16, 2017 Anand Veerkar

A report from The International Association for Contract and Commercial Management revealed a startling statistic: sell-side contracts consume more than 76% of contracting resources. For half of these contracts, the cycle time from bid to execution can take 21 weeks or longer.

When a global organization devotes that many resources to managing sell-side contracts, it indicates a clear need for a more efficient process. To unlock the full value in your sell-side contracts, your contract management platform should provide you with the following capabilities.

Templates and Clauses Library

It’s challenging to draft a contract from scratch. With a database of approved clauses at your fingertips, creating a contract that adheres to corporate standards is easy and accurate. An intelligent rules engine can assemble the contract from these templates, as well as orchestrate the approval process – without sacrificing contract velocity.

Renewal Management

Renewing an expired contract requires renegotiation and redrafting. If you know when each contract will expire, you can get a jump on the renewal process. If negotiations are necessary, they are often easier to work through when you do not have the contract expiration date knocking on your door.

Commercial Compliance

Managing compliance across global sales teams and geographies is challenging.  Achieving the full potential of negotiated contracts requires better enforcement of commercial terms. The Icertis platform captures the commercial terms of products and services, prices, discounts, rebates and incentives in a structured form, integrates that data with enterprise systems and helps enforce terms. Workflows allow supporting legal teams to identify and manage risk throughout the contract lifecycle with proactive insights on compliance.

Risk Management

Risk management begins at the contract creation phase, long before the agreement is signed. Manually tracking commitments, expiries, deviations and other obligations can take an enormous number of resources. The Icertis Contract Management (ICM) platform has user-configurable risk assessment models to address this issue.

Small errors or oversights in the early stages of a contract’s lifecycle can have profound effects downstream. A configurable risk model helps track risks across different categories, such as financial, contractual, performance and third party. External data from sources such as D&B and Thomson Reuters help determine risk scores, ensure proactive risk monitoring and increase visibility for stakeholders.

And by exchanging data with your existing CRM, pricing and CPQ systems, you’ll be able to have a comprehensive view of all the risks associated with a contract.

Take our Contract Management Risk Assessment

jQuery(document).ready(function($){
$(window).scroll(function() {
var sticky = $(‘#masthead’);
scroll = $(window).scrollTop();
if (scroll >= 95) sticky.addClass(‘fixed’);
else sticky.removeClass(‘fixed’);
});
});

About the Author

Anand Veerkar

Anand Veerkar is Chief Sales Officer at Icertis.

Follow on Linkedin Visit Website More Content by Anand Veerkar
Previous Article
Are Missed Contract Obligations Costing Your Company a Fortune?
Are Missed Contract Obligations Costing Your Company a Fortune?

Ensuring contracts perform to their full potential requires all parties deliver on their promises.

Next Article
How having a ‘single source of truth’ benefits both sides of contracting
How having a ‘single source of truth’ benefits both sides of contracting

In our last blog, we explored why in today’s data centric, fragmented and siloed business world, contracts ...