How GEP and Icertis Harness CMS to Streamline Procurement
Contract management software (CMS) is a digital platform crafted to simplify the entire journey of contract lifecycles.
By automating processes like creation, negotiation and archival, it boosts productivity and minimises risks tied to manual operations.
This platform empowers organisations by streamlining operations, mitigating risks, promoting teamwork and offering up-to-the-minute insights into contract statuses. Essentially, a CMS stands as an indispensable asset for contemporary businesses aiming to refine their contract management strategies in today's digital landscape.
In the fast-paced landscape of modern procurement, effective contract administration stands as a cornerstone for ensuring seamless functioning, mitigating risks, and optimising partnerships. To navigate this dynamic scenario, organisations commonly turn to contract management software solutions.
We spoke to Santosh Nair, GEP’s Chief Product Manager, and Shannon Kirk, Global Director of Legal Industry Solutions at Icertis, about the value of CMS, including how AI and automation is reshaping its efficiency, keeping to sustainability conditions and focusing on strategic value.
Contract management software (CMS) is a digital platform crafted to simplify the entire journey of contract lifecycles.
By automating processes like creation, negotiation and archival, it boosts productivity and minimises risks tied to manual operations.
This platform empowers organisations by streamlining operations, mitigating risks, promoting teamwork and offering up-to-the-minute insights into contract statuses. Essentially, a CMS stands as an indispensable asset for contemporary businesses aiming to refine their contract management strategies in today's digital landscape.
In the fast-paced landscape of modern procurement, effective contract administration stands as a cornerstone for ensuring seamless functioning, mitigating risks, and optimising partnerships. To navigate this dynamic scenario, organisations commonly turn to contract management software solutions.
We spoke to Santosh Nair, GEP’s Chief Product Manager, and Shannon Kirk, Global Director of Legal Industry Solutions at Icertis, about the value of CMS, including how AI and automation is reshaping its efficiency, keeping to sustainability conditions and focusing on strategic value.
How has contract management software transformed procurement?
Santosh and Shannon both believe in the value of a good CMS system, having experienced how they have transformed procurement. They celebrate its ability to automate workflows, streamline processes and enhance both visibility and compliance throughout the contract lifecycle, where procurement is expected to find results.
“Procurement is increasingly tasked with delivering business value, from contract creation and approvals to surfacing untapped savings, avoiding missed obligations, and ensuring compliance through supplier relationships,” Shannon says.
“To meet these demands, procurement leaders are turning to contracts as critical resources and leveraging CMS to deliver the speed, performance, and transparency needed in today’s business environment.”
Companies need to utilise these programmes to get an advantage, Santosh believes: “Effective contract management, supported by the right digital solutions, gives procurement teams a lasting edge over their competitors. These solutions enable procurement teams to systematically capture commercial and operational outcomes and connect them to ongoing communication with suppliers across supply chains.”
How AI is shaping CMS
As AI continues to reshape all aspects of business practice, it should come as no surprise that the technology is reshaping CMS.
By 2027, 50% of organisations will support supplier contract negotiations through the use of Artificial Intelligence (AI)-enabled contract risk analysis and editing tools according to leading research and advisory company Gartner. Both Shannon and Santosh think that AI and automation are critical components in enhancing the functionality of CMS. The programme enables tasks such as contract analysis, negotiation, and compliance monitoring to be automated, leading to increased efficiency and effectiveness in procurement operations.
Santosh is already seeing clients using AI to their advantage: “We work with a leading European-based pharmaceutical company that uses our AI-driven CMS to scan all its contracts after any regulatory change (especially around GDPR, ESG and even on AI) to identify affected contracts and quickly initiate changes in a few minutes and hours. This is a task that would have taken weeks a year ago. This trend will continue and I fully expect that 80% to 90% of routine contract administration tasks will be fully automated in the next year or so.”
Nearly half (44%) of CPOs have led AI adoption efforts in the last 21 months, Shannon adds: “Procurement is leveraging AI to drive value and shape company strategies. This shift will empower procurement teams to embrace innovation, offer deeper insights into market trends, and improve the way new suppliers are sourced and onboarded. Ultimately, this leads to stronger supplier partnerships and more autonomous contracting processes.”
How to get the most of of CMS
While the software has proven to be vital, there are still ways to get the best out of it. Both of our leaders emphasise the importance of leveraging technology to drive value in procurement, highlighting the need for organisations to adapt to changing environments and embrace new technologies to remain competitive. While also knowing the goals of the business to implement effective technology.
The critical need for integration
In the contemporary interconnected business landscape, organisations depend on integrated systems to streamline operations, boost efficiency, and elevate productivity. CMS and Enterprise Resource Planning (ERP) systems stand out as formidable tools, each serving unique functions. Nonetheless, merging a CMS into an ERP ecosystem offers a holistic solution, blending content management prowess with extensive enterprise management features.
Shannon highlights the strategic value of contract data as a source of insights for innovation and decision-making: “By connecting millions of contracts and infusing their data into core operations, enterprises can create rich pools of AI-powered insights to inform better decision-making and speed the pace of business.”
Integration ensures there is compliance, Shantosh adds: “Because ERPs are the main system for all financial transactions, it is essential to integrate CMS to ensure that the correct commercial terms and operational SLAs are connected to daily transactions.”
Demands from increased sustainability considerations
When it comes to sustainability in procurement, Shantosh and Shannon both highlight CMS as playing a crucial role in ensuring compliance with ESG standards and facilitating sustainable practices across supply chains.
Procurement is expected to set key objectives for Scope 2 and 3 emissions, companies are putting these goals in their contracts with clear metrics for suppliers to follow. Santosh says: “We work with a leading industrial manufacturer, providing a dashboard showing specific quarterly progress on Scope 3 emissions across all tiers of its global supply chain, supported by thousands of contracts and millions of data point collaborations behind the scenes.”
Shannon expanded on how the technology can be used to provide contract visibility: AI capabilities within CMS can pinpoint ESG-related clauses, ensuring they are actively managed and adhered to, which is crucial for achieving sustainability goals. This comprehensive oversight helps protect organisations from regulatory risks and potential reputational damage, making CMS an indispensable tool in modern corporate governance.”
What does the future hold?
With technology still evolving and the demand to hit ESG targets ever increasing, the role of CMS is expected to continue its rapid evolution.
As in many spheres, AI-driven solutions are expected to be at the very heart of the future of CMS technology thanks to the potential benefits of automation, cost savings and decision-making.
Santosh thinks we will see an adoption of AI to accelerate in 2024 and into next year: “Early adopters are showing significant competitive advantages across their financial, operational and business outcomes – and increasing pressure on the laggards.
“At the same time, software continues to evolve and newer applications in terms of intricate pricing, fully automated obligation management and AI assistants for complex terms will continue to become available.”
But alongside the benefits Shannon predicts more rules: “We can expect more regulations around AI technologies, as evidenced by recent legislation like the EU AI Act. This regulatory environment will require companies to demonstrate that their use of AI is safe and effective, creating an opportunity to demonstrate compliance with regulations through contracts.”
To read the full story in the magazine click HERE
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