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Contract obligation management and controls with smart legal contracts offer a more secure and streamlined way to achieve an effective and automated contract management system.
Contract management has long been the norm for many industries looking to streamline their supplier and vendor relations. However, the process of managing contract creation, execution, and analysis has historically been plagued by inefficiencies and error due to the manual work involved. That is why we’re seeing a new standard in the form of contract obligation management and control with smart legal contracts
Smart legal contracts can help you with management and control
Today, organizations encounter an ever-increasing amount of pressure to reduce costs and improve company performance. As a result, contract management is turning into a very time-consuming element of business, which facilitates the need for an effective and automated contract management system.
It isn’t enough that an organization has professionals in place to handle contract management. Employees must be augmented with the presence of processes and software companions to satisfy increasing compliance and analytical needs.
The foundation for contract management relies on the implementation of successful post-award and upstream activities. Contract management requires a level of flexibility for both parties involved and a willingness to adapt contract terms to reflect any changing circumstances.
While there are many components of contract management, we can summarize the process by breaking it into five clear stages: creation, collaboration, signing, tracking and renewal. Now, imagine if these stages can be automated and streamlined.
Obligation management and controls with smart legal contracts offer a more secure and streamlined way to achieve contract automation
Introducing smart contract management as a native component of the supply chain reveals an industry-first capability to empower organizations to grow their business network without needing to worry about common challenges associated with shared IT. Companies can then manage how smart contracts are deployed and by whom. We have covered the other advantages of using smart contracts in this article.
In an enterprise blockchain context, the beating heart of the solution is the shared business logic agreed upon among all parties, codified in smart contracts on the chain. The management, versioning and lifecycle of this shared business logic is an important governance activity for the business network. Equally important are the practical considerations of debugging transactions running through this business logic in production.
As organizations interact with more entities and reach mature stages of their blockchain implementation, they can now manage smart contracts across environments and control who can deploy to their business network directly. Approaching contract obligation management and control with smart contracts gives you complete flexibility on how you deploy and invoke your contracts.
Additionally, other Trakti features of combined with smart legal contracts like contract authoring, renewals management, clause libraries, workflows, integrated signature and much more, can provide an in-depth capability to handle complex obligation management scenarios across different industry verticals.
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