In short, a hard line approach to standard form, take-it-or-leave it contracts seems to be back-firing on the Legal teams that seek to impose it, at least on the procurement department. Why, because suppliers don't like it, they push back and negotiate, and Legal ends up getting dragged into the process more than they would like.
Instead of using flexible tools like automated document assembly to empower procurement and accelerate cycle times, the IACCM research shows that:
- Contract cycle times have been increasing; and
- Legal is seen as a "road block" by 40% of procurement teams.
Further evidence that standard form inflexibility really doesn't work for business contracts. Contract automation is a much better solution.