Contracts are not simple anymore. They are highly complex, with several clauses and nuances, like in the case of digital licensing and fintech.
As a result, the cost, time, and effort to manage contracts have increased significantly.
Businesses invest in contract management or contract lifecycle management software to deal with the challenges of contracting. It automates crucial workflows and provides a central interface for all stakeholders to contribute.
You can enjoy several benefits by digitizing your contract management. Let’s discuss the most promising ones in today’s blog.
A contract can take hours to draft. It becomes a problem when your business reaches a certain size, and you deal with innumerable contracts regularly.
Contract management software expedites contract authoring. It comes with customizable templates with a library of clauses for every industry.
You can pick a template and personalize it to meet your contracting needs in minutes. Best of all, you don’t need to be a legal expert to draft a contract. Your software will provide all approved clauses and terminologies to make a professional contract.
The process lowers legal dependencies and improves consistency. You can also automate workflows like generating an amendment letter to save effort.
Contracts need approval from designated parties before you execute them. It can take several days as approvers scrutinize the contract document for risks and viability.
A contract lifecycle management solution can help you save precious hours by automating approvals. Moreover, it provides a common tool for everyone to suggest changes or leave comments in real-time.
Every activity is easy to track and leads to better visibility. You can also expect more efficient approvals using automated workflows.
Contracts may come with hidden risks at many levels. For example, your document may contain unapproved terms that result in legal consequences.
Contract management software goes a long way to mitigate risks. The pre-built templates with approved clauses help you avoid any unpleasant consequences.
Moreover, you have complete visibility and control over your entire contract management. Therefore, you are not likely to miss out on anything that can lead to penalties or non-compliance.
Additionally, governance of contracts improves to ensure the interests of all parties are protected.
A digital solution even creates an audit trail to allow admins to stay updated of all activities. They contain timestamps and names of persons who performed the change.
Moreover, alerts and notifications help you meet your deadlines.
Secure Document Management
Paper documents and file cabinets are highly risky. Moreover, they introduce countless responsibilities for protecting your contracts.
A contract lifecycle management tool digitizes your paper documents. You can store your files in secure cloud or on-premise storage solutions.
Most importantly, your tool lets you control access with role-based permissions, two factor authentication, and more.
Therefore, no one can modify documents without permission. Additionally, you can share documents with stakeholders using passwords for complete security.
Access control is available at every step of contract management. Moreover, some tools comply with laws like GDPR for absolute compliance.
Lower Contract Costs
Managing contracts manually leads to significant costs. You have to pay several employees to review and author contracts.
Moreover, they have to track changes and deadlines, resulting in hours of work.
Contract management software reduces contracting costs considerably. You can automate your processes and eliminate manual work.
Therefore, you don’t have to pay for the hours you save. Moreover, you can downsize your contract management team to save on labor costs.
Moreover, you can draft contracts and policies in minutes. It also saves labor costs and goes a long way to boost productivity.
Contract lifecycle management solutions act as a central repository of information. You can store your contracts and make them available to different stakeholders.
Everyone can enjoy improved accessibility and an organized way to work on the same document simultaneously. Stakeholders can access documents even if they are in another country, using secure methods.
Moreover, you can enjoy several perks, such as:
- Information becomes easy to search
- Document retrieval is faster
- Quick approvals
- No loss of documents
Businesses can expect a smooth and efficient contract process when they rely on technology.
A central hub for all your contracts results in improved transparency. Every document is accessible from a single interface with a record of every amendment.
Moreover, all stakeholders can view changes made to a contract in real-time. The authority responsible for the edit and time are also available for everyone to see.
As a result, businesses can create trust among all parties. Even external stakeholders are able to place their faith in your processes to make the deal happen.
Paper documents can easily be altered, and you can’t view changes in real-time. They are vulnerable to manipulations, and details are easy to miss out on.
Contract management software optimizes your contracting processes. You can view every aspect on your contracts from your interface for total control.
Moreover, you have automated crucial workflows like approvals. Now, the whole thing acts as a top-performing machine to help you scale your operations.
You can handle hundreds and thousands of contracts without losing your sleep. It is imperative for big businesses and enterprises that deal with several stakeholders.
A sound contract management process allows you to scale new heights based on solid foundations.
Contract management or contract lifecycle management software is a boon for modern businesses. It is essential to centralize your contracts and optimize crucial workflows. The solution helps you save time and reduce contracting costs. Moreover, it can improve sharing, collaboration and transparency.