Contracts rule the supply chain world. They form the foundation of any enterprise, influencing revenues, expenses, workflows, procurement, and all operational aspects of the company. As a business grows, the number of contracts managed is increased.

Contract lifecycle management (CLM) is the process that streamlines contracts' creation, approval, and management. Contracts are living documents; failing to manage them properly can expose your company to risk and significant losses.

The lifecycle management provides actionable insights at every contracting process stage while eliminating bottlenecks, improving security, and decreasing the potential for errors.

Step-by-Step Process

Contract lifecycles go beyond simply drafting, negotiating, and signing a document. The real value is unlocked with a holistic, end-to-end.

  1. Request: contracts begin with a request from a specific individual or department, outlining the needs for the contract.
  2. Create: contract creation is an important area that can create risk. While your company’s legal department handles complex contracts, that process can take days or weeks to complete, slowing down negotiations.
  3. Approve: Once the contract is drafted, it needs to be approved – and without a centralized, streamlined workflow, the approval process can cause delays, and changes or approvals may be made without an audit trail. CLM allows certain permissions to be automatically included within contracts that meet pre-approved criteria but also ensures that contracts are only approved after going through the proper channels and that there are meticulous records about approvals and changes.
  4. Negotiate: CLM helps streamline the negotiation process by providing terms and positions, clause libraries, and issue lists. When everything is stored and managed in one place, it’s easy to compare documents and view redlines so you know what has been negotiated.
  5. Sign: blockchain-CLM makes the process of signing and executing contracts simpler. With blockchain signatures on a distributed ledger, both parties automatically receive secure copies as a record of their agreement.
  6. Capture: Instead of simply filing the documents, the vital data locked inside are turned into structured data. The information is centrally stored to enable quick, secure access.
  7. Comply: with your documents centrally stored and data universally structured, CLM allows custom, granular alerts and reminders to be created, sending notifications when predetermined criteria are met, including upcoming renewal dates.
  8. Manage: keeping track of orders, amendments, renewals, terminations, and performance targets.
  9. Optimize: Finally, the contract lifecycle includes using your data to optimize performance and efficiency.

Nexity's Way

Nexity Network places contracts and orders at the center of the sourcing process, ensuring compliance, minimizing risk, and providing a holistic view of supplier relationships to:

  • Automate requests for information, quotations, and proposals with built-in collaboration;
  • Perform side-by-side, Excel-based bid analysis to identify qualified suppliers;
  • Negotiate effective pricing and shortlist best suppliers with multi-round events;
  • Increase control and reduce the risk of non-compliance with the integrated payment system;
  • Encourage supplier collaboration with simplified onboarding and standard KYB process for higher transparency;

Contract Creation Flow

Create, edit and approve contract in a digital workspace. Secure them on a blockchain database.

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What is Nexity Network?

Nexity Network is building a blockchain-enabled, circular, more transparent, and productive world by rethinking how everything is designed, created, used, and recycled, from the food we eat to the clothes we wear and how we do business.

We are creating the next economy to serve as a bridge for the companies and customers to enable transparently, responsible, and secure product & service flows.

The ecosystem is positioned to solve supply chain complexities, focusing on day-to-day operational activity from environmental damages, visibility gaps to trust between parties, and fragmented data exchange.

Press Contact

Nexity Public Relations
pr@nexitynetwork.org

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