For many companies, the search for contract management software stems from either rapid business expansion that leads to an increase in contract acquisitions, the ability to regain control of a mismanaged contract, or a contract process that consumes too much time and effort.
Whether you misplaced a critical supplier agreement or contract automatically renewed without your knowledge, consider reaching out to us at contractSafe.com, to help you get organized. There are numerous challenges you can prevent by having contract management software in place.
Suppose you are managing several contracts while using a manual system. In that case, you will consistently find yourself spending a sizeable amount of time hindering you from keeping up with dates, meeting deadlines and obligations. The challenge is aggravated as the number of contracts in your portfolio increases. Moreover, you dread retrieving information as the process is unnecessarily long and tedious.
Can a contract management tool assist you in minimizing these challenges?
Advantages of contract management software
Simplifying processes
Simplify contract management repetitive tasks such as keyword research, locating clauses, updates, managing and tracking agreements. By improving efficiency, you spend less time handling contracts and more time focusing on productive business activities.
Unlike manual processes that take weeks to compile paperwork, sign, scan, and upload documents, contract management software speeds up the process closing the deal in a relatively shorter time.
The development of E-signatures offers convenience, speed, and security, unlike pen and paper signatures that take longer, with the process proving to be more protracted and more cumbersome. With instant contracts approvals, contract management software help increases efficiency and productivity.
Improve efficiency
Consistently monitoring your contracts helps you to identify those that need renewal and do away with unnecessary ones. A contract that automatically renews without your knowledge would pose a challenge if you intended to terminate the agreement, make appropriate adjustments before renewal, negotiate for better terms or pause the contract for some time.
A contract management software allows you to schedule reports automatically and send vital information to concerned parties directly from your email. Furthermore, it is easier to evaluate, assess contracts and take appropriate action.
Another fantastic feature of contract management software is the availability of customizable templates with a variety of designs and pre-approved legal clauses that allow for flexibility while safeguarding organizations against risk.
Minimize risk
If you depend on a manual contract management system, you risk missing deadlines or forgetting renewal dates, leading to misunderstandings and loss of business. Using written notes or manual calendar reminders leave you susceptible to oversight and human miscalculations.
Complex manual processes do nothing to prevent error, which pushes organizations to invest in contract management software. Contract management software schedule notifications and send alerts and reminders to remind relevant parties of approaching contract milestones. Having information well documented helps eliminate misunderstandings and missed opportunities while planning for customer outreach.
Contract management software consolidates all your agreements, and you can easily single out important contract details while integrating useful processes and action at the right time. All contract data is easily retrievable, and there is no possibility of experiencing clerical errors since contract management software automatically flags any anomalies.
Business growth
Storing contracts on manually operated systems like cabinets or computer desktops can only work with small contracts with minimal risks involved. However, the major purpose of starting any business is to expand it.
With a manual system, challenges will arise with the complexity of simultaneously juggling multiple contracts. Even with the right tools in place, effectively managing contract agreements takes time, effort, hard work, and keenness for details. Attempting to manually accomplish agreement tasks becomes almost impossible with a ballooning contract portfolio.
While your organization may currently be managing a handful of contracts, it gets challenging to remain in control as your contract agreements multiply. Business growth is a clear indication of the need to integrate contract management software.
Startups and small-scale enterprises should prepare for future expansion by assessing the various contract management options available, software viability, and affordability. Migrating to new and modern technology will catapult your company, setting it up in a better position to handle more contracts.
Besides, wouldn’t it be easier to transition proactively while you can manage fewer contracts? Rather than transitioning reactively while simultaneously dealing with challenges that come with growth. On the one hand, you will be under pressure during the expansion process while dealing with a significant increase in new contracts and short deadlines.
Time management
An appropriate contract management software dramatically reduces time spent by shortening sales cycles, better focus, accurate data analysis, compliance, and execution. Teams spend less time on bureaucracy and more time serving customers. Searching for contract-related data is easier, enabling organizations to analyze contract history and determine best practices, opportunities and address possible risks.
Conclusion
Negotiating a contract is the first step of a contract agreement. Therefore, companies must ensure they are adequately equipped to meet any unforeseen risks. Leveraging contract management software to track and monitor agreements will make a difference whether your business is a success or not.
