Tracking Contract Metrics: The Benefits of an Agile Contract Management Platform
In today’s on-demand and digital economy, customers have grown to expect the same mobile, B2C-like experience from B2B companies. As a result, many companies are forced to fundamentally change their business models – going from selling physical products to selling subscriptions and other services. Because this change leads to increasingly complicated contracts, organizations are implementing Contract Lifecycle Management (CLM) platforms to ingest, generate, redline, sign, and execute their contracts. The resulting contract repository provides detailed insight into active contracts, the associated clauses and obligations, and the relationship between them.
In addition to providing digitized repositories of searchable contract documents, some CLM platforms can also store other types of data with the contract then enable reporting and analytics against it. This supplemental data allows for the tracking and reporting of key business and regulatory metrics, which may include:
• Large capital projects against contracted milestones, reporting of pain/gain at each gateway, and enabling go/no-go decisions
• Supplier performance against contracted service level agreements (SLAs), alerts for unmet SLAs, and reports of lead indicators ahead of time
• The relationship between buy-side and sell-side contracts, which recognize the absence of contractual coverage and flow-downs across complex supply chains as contracts churn, renew, or are terminated
• Data required for regulatory reporting from within the contract and the recognition of missing data
• The identification of risk associated with contracts based upon the use of language and semantics within them (substance over form)
The ability to track and report on these metrics requires a CLM platform to offer a broad set of capabilities. The capabilities, which Apttus CLM provides, are.
• An easily extensible data model: Apttus CLM is native to Salesforce and inherits its flexible, single data model
• Integration to supplier and delivery: The Apttus CLM platform exposes a set of web service APIs enabling integration into a variety of platforms, making it easy to collect status updates and update the data model
• Analysis, reports, and alerts based on metrics: Apttus CLM offers easy-to-use broad reporting and analytics capabilities that are recognized by anyone with Salesforce platform experience
• Enhanced Machine Learning (ML): Apttus CLM uses machine learning to recognize and flag contracts trending towards undesirable circumstances, ahead of company personnel
A successful CLM platform requires thoughtful consideration into capabilities that extend beyond a simple contract repository. Choose the solution that offers the biggest benefit to various teams across your business.
For more information on the Apttus Contract Lifecycle Management platform, please visit us at apptus.com.