Optimizing the Source-to-Pay Process with a Contract Lifecycle Management Solution

⇨ Modern procurement teams are challenged by outdated contracting processes, leading to issues like non-compliance and missed contract value; adopting Contract Lifecycle Management (CLM) solutions can help address these inefficiencies.

⇨ AI tools integrated within CLM systems enhance negotiations by analyzing historical data for better contract terms and simplifying risk assessment, ultimately making the contracting process more streamlined and risk-averse.

⇨ Effective contract management extends beyond signing, requiring ongoing monitoring of obligations to ensure compliance and mitigate post-signature risks, which can be optimized through advanced CLM solutions.

Today’s procurement teams have critical responsibilities that not only includes costs and supply assurance, but also spend management, supplier negotiation, and risk mitigation. However, many procurement teams are often challenged by outdated, inefficient contracting processes and poor contract visibility that leads to inefficient processes, non-compliant contracts, auto-renewals without oversight, and missed contract value.

But contracting goes beyond signing agreements—it is about understanding the data involved and keeping contracts accessible and updated. But how can organizations achieve this?

In a recent Docusign webinar, experts from EY and Spend Matters explored how Contract Lifecycle Management (CLM) streamlines procurement contracting while integrating third-party risk management. The webinar discussed how CLMs can be used to streamline procurement processes and how Docusign’s CLM solution automates the full contract lifecycle, unlocking maximum value from vendor agreements.

The webinar featured industry experts like Nikhil Gaur, CLM Research Analyst at Spend Matters and Jeff Nichols from EY’s Risk Consulting who explained how CLMs enable procurement teams to use centralized systems to create agreements more efficiently, reduce errors, and enhance collaboration. Gaur also highlighted the role of AI tools and capabilities in assessing contract terms, enabling seamless negotiations, and automating contract management. He emphasized that AI not only enhances negotiation outcomes by analyzing historical data to propose terms similar to successful agreements but also accelerates the traditionally lengthy and manual third-party review process, reducing both time and risk.

On the other hand, Nichols underscored the critical role of risk mitigation during negotiations and explained how CLMs enhance visibility into terms and obligations, enabling more accurate risk assessments. He emphasized that using a CLM system integrated with the procurement process not only helps teams embed third-party risk management practices into vendor onboarding and contracting but also lowers negotiation complexity by ensuring renewals occur on time and helping get outcome-based agreements in place faster.

Both speakers also gave insights on managing post-signature risks, emphasizing the need to track obligations and ensure compliance. They highlighted how AI-driven CLMs are instrumental in effectively managing such obligations, reducing risks even after agreements are finalized. By leveraging AI, procurement teams can transform contract management into a more strategic, streamlined, and risk-averse process.

With a proven track record, Docusign is the #1 CLM vendor in Gartner’s Magic Quadrant for four years, boasting a 91% satisfaction rate and the largest number of successful CLM implementations. Trusted by major global companies, Docusign’s holistic approach stems from its eSignature roots, with unmatched expertise, data, and resources.

The webinar provided invaluable insights into how procurement teams can evolve and enhance their operations using modern CLM systems. Watch the full webinar here.