How To Modernize Your Contract Negotiation Processes

contract negotiation

Why is contract negotiation important? Think of it like this: money may be a company’s lifeblood, contracts are its bones. They provide the framework that allows the money to flow through. Contracts are frequently used to hold a company’s most valuable assets and connections. That is why in-house counsel spend so much time, effort, energy, and money developing, negotiating, monitoring, and interpreting them. Contracts are the foundation of every good organization, whether in sales, vendor activities, business growth, or other strategic endeavors.

Cloud technology have fundamentally revolutionized how we operate over the last two decades. In the process, agile web-based apps with per-user pricing structures and little or no up-front expense have become the standard in other areas. So, why are we still negotiating contracts as if it’s 1991?

We continue to prepare contracts in Microsoft Word, distribute them to key stakeholders, gather everyone’s edits, reconcile all revisions into a single document, email the modified version around, and then… repeat. Then there’s the issue of extended negotiating cycles, a lack of transparency, and inadequate process control and compliance. In the age of self-driving automobiles, this entire procedure is akin to riding a horse and buggy.

Why Should You Modernize Contract Negotiation?

Increase Impact

Contract negotiating skills now need a great deal of manual, error-prone clerical labour. Sifting through communications and reconciling several versions into a single document leads to lengthier negotiation cycles, and a lengthy negotiation process always increases the danger of losing the business. Modernizing contract negotiation strategies and management can enable your organization to allocate more high-value resources to key business operations such as strategic thinking.

Improve Relationships Through Visibility

How long does it take you to answer simple inquiries about your firm for your employer or coworkers? For example, how long will it take to close a specific contract? How much money will we make this month? How many contracts have non-standard terms? That is only the beginning; there are an unlimited number of other questions to which solutions would be beneficial.

With today’s methods, having a definitive response to even these simple queries is nearly difficult. What if you could improve your contracting process by 10%? Where would you even start with such discussion? It is not a luxury to be able to have these intellectual talks about contracts; it is a need.

Control Over Contract Negotiation Process

How do you ensure compliance and maintain a strong contractual process? What to do if your employees continue to transmit static papers to one other and third parties in the same way they did 10 or 20 years ago? Because people make mistakes, manually reviewing each contract and recording non-standard terms, renewal dates, and other vital information is a risky endeavor. As you know, their eyes glaze over and their minds are not engaged while they are reading contract after contract.

Adopting a solid cloud contract negotiation and management approach will enable you to easily establish, enforce, and audit compliance with your company’s formal contractual processes. In other words, you will manage risks more effectively, efficiently, and methodically.

Cloud contract negotiation and management solutions were once thought to be the way of the future. We speculated about alternatives to going through paper after document, copying and pasting generic words, printing, signing, and scanning. All this just to repeat the process when your spouse changes their mind at the last minute. It was originally considered a luxury.

How To Approach Contract Negotiation Through Modernized Tools?

Managing and negotiating many contracts with various clients and suppliers is a difficult undertaking. With Ordema, you may communicate with other businesses and set up arrangements that are tailored to your specific need without the difficulties of traditional contract administration. When each section of the contract begins, it is clear what each organization expects. Many norms and regulations apply to contract management software. While most businesses have standard operating procedures, there is rarely enough time to adhere to them.

This is when Ordema enters the picture. We simplify your contract administration process without sacrificing quality and ensure that everything is operating properly for you. This allows you to approach contract negotiation in a modern way, eliminating a lot of the risks of traditional contract negotiation through a more efficient process.

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