Meet Contract Lifecycle Management
Learning Objectives
After completing this unit, you’ll be able to:
- Describe some contract management challenges.
- List the benefits of using Industries Contract Lifecycle Management (CLM) in your business.
- Explain how Industries CLM solves business challenges.
The Industries Contract Lifecycle Management solution provided by Vlocity Managed Packages is specifically designed for customers in the Communications, Media, Energy, Health, and Insurance sectors.
Contract Management Challenges
Meet Sophia Perez. She’s a sales manager at Infiwave, a communications service provider (CSP) that’s growing into new geographic and technical markets through phenomenal sales. She directs the company's sales activities and works with the Salesforce administrator to improve the sales process, including the management of contracts.
Sophia and her sales team are doing an outstanding job, and they crush their numbers each month. However, with many won deals come dozens of documents. This means the team has to maintain a myriad of contracts for the opportunities, quotes, and orders they create.
Infiwave has an outdated contract management system that stores contracts as individual documents. This means Sophia and her sales team must create and manage the files manually to process contracts. The approach presents several challenges to the team.
- High operating costs due to no centralized contract database
- Poor visibility into contract details
- Inefficient contract-processing cycles
- Contracts with non standard language
- Non compliance with contractual obligations
- Missed renewals and other milestones
- Poor audit history of contract data and documents
These challenges spell trouble for Infiwave. Even though the company is profitable, it’s buckling under the heavy weight of contract documents that need processing. In addition, compliance failures put the company at risk for fines, penalties, and even litigation. Missed renewals lead to leaking or lost revenue. As you can see, the current model of contract management isn’t sustainable for the company. Who can rescue Infiwave from its plight?
Sophia quickly learns that moving from paper and hoards of separate electronic files to a proper contract lifecycle management solution will standardize and organize the creation of contracts. In doing so, it can transform the sales process. So, in an effort to ramp up their contract lifecycle management capabilities, Infiwave has purchased Industries CLM. It’s the solution that can also help them deliver a superior customer experience and dominate the market.
Let’s discover how Industries CLM can help Sophia conquer obstacles and improve the customer experience.
The Solution
Industries CLM lets you create and maintain the entire lifecycle of contracts to improve the sales team and customer experience. The Industries solution:
- Automates and streamlines the contract lifecycle, which reduces contract cycle timelines and accelerates deals
- Provides a common, cloud-based, integrated contract repository
- Standardizes and digitizes the contract process with pre-approved document templates and clauses
- Supports the conformance of contracts to internal company policies, with full auditing capabilities for compliance reviews
- Automates renewal opportunities for contracts close to expiration to ensure timely renewals
- Transforms document versioning and review and provides digital signature capabilities
Business Impact
Industries CLM helps companies like Infiwave achieve impressive results.
- Increased contract renewal rates: Renewals are not delayed or missed, resulting in increased revenue.
- Reduced contract cycle times: Faster deal closures accelerate cash flow.
- Reduced administrative overheads: Administrative costs, material costs, and other overheads, such as courier costs are reduced, which lowers overall operational expenses.
- Enhanced compliance management: Financial and legal risks are minimized.
- Enhanced experience and customer satisfaction: Process digitization increases customer satisfaction.