Benefits of Having a Contract Management System

Posted on January 29, 2022 · Posted in Uncategorized

Contract management software is designed to fully automate your contracting process. Customizable automated workflows speed up the review process and increase efficiency. By creating a dynamic workflow task list, you can quickly analyze all contracts to get a better idea of the current state of affairs in your company. Based on this information, you can inform the responsible parties via email to remind them of the next steps or to set escalation procedures. Ongoing evaluation: Procurement activities are evaluated on an ongoing basis to ensure that contracts have been met and that all procurement processes have been followed. A contract management system gives every employee the real-time access they need to existing and evolving contracts to do their job effectively. It streamlines and streamlines the process of concluding new contracts, the execution and execution of existing contracts, and the evaluation and learning of expired contracts. Just knowing where your contracts are may seem like the most basic part of contract management. But a surprising number of companies can`t even do it, according to a report in the Journal of Contract Management. What makes using a contract management system such a powerful way to increase value and reduce risk? Read on to discover the top three benefits of a contract management system.

Contract management is an essential part of any organization, but many companies continue to work with outdated and cumbersome paper contract management or a below-average digital version. These 7 benefits of contract lifecycle management explain why you need to make the leap to better, more systematic, and automated contract management. With a contract management system, your finance department not only has real-time information on contract prices and other financial conditions, but also AI-based analytics tools to obtain forward-looking insights from existing contracts and make financial modeling more nuanced and accurate. We don`t need to expand the metaphor. You get it right. And because you do, you probably also realize that managing contracts throughout their lifecycle is an essential task for any business. In this blog post, we explain how implementing a contract management system can deliver outsized benefits to your business by making contracts more efficient, consistent, and transparent. Improved contract compliance comes with the significant benefits of producing risk. Enforcing and leveraging the latest terms set out in your contract will help improve overall compliance. A study from Aberdeen shows that compliance management is improved by 55% through the use of a contract management system.

Compliance, as well as the ability to demonstrate it, depends on audit trails and compliance monitoring. As for your legal department, it is usually the people who need to do the least persuasion to reap the benefits of a comprehensive contract management system. Virtually every legal team we`ve met feels the pain of managing enterprise contracts (and often loses sleep about it) without the tools to review, pronounce, and monitor business-critical contracts. Enforcing and leveraging the latest conditions, controls, and policies improves overall contract compliance. According to Aberdeen, compliance management will be improved by 55% with a contract management system. Being and being able to prove compliance depends on traceable audit trails and compliance monitoring. On the buyers` side, the standardization of processes and procedures reduces the risk of purchase and delivery for loners while increasing the leverage of expenses. The net effect is that supply chain risks are reduced and purchases as a whole become cheaper and more valuable. Find a contract management system that ensures contract compliance.

Most modern contract management systems offer a visible audit trail and strict compliance monitoring. Contract management systems help create and store standardized contract languages and templates. You can also sync with your favorite apps like Salesforce, Dropbox, Box, and Google Drive to create a seamless integration. Update all teams to simplify contract execution – because as we know, contracts are not limited to the legal team. A contract management system facilitates the centralization and organization of documents. Instead of storing contracts in different places (in desk drawers, workbooks, on different SharePoints and file-sharing platforms), contract management software allows you to upload all your contracts to a single cloud-based location, where you can organize them by type and category and search based on keywords or other data in contracts. Therefore, using a centralized contract management system can reduce the time it takes to search for a particular contract from a few hours or more to a few seconds. Your marketing team can now see the details of purchase agreements in the pipeline, analyzing which of their marketing strategies led to the most beneficial results for the business. In IT, a contract management system eliminates the headache of managing a patchwork of poorly integrated contract applications and replaces them with a single, fully supported end-to-end solution. Even mid-sized companies can have thousands of active contracts in place at any given time – a level of complexity that cannot be managed without technology. Organizations for which there is no solution suffer quantifiable losses.

Spreadsheets combined with manual approaches are old-fashioned; They lack data integration and integration with other systems such as CRM or ERP, lack organizational access (e.B s repository), lack important alert features, and can`t scale to accommodate growth. In the age of digital transformation, manual processes are a one-sided path to obsolescence. Unlike paper-based contract management systems, storing all files in a central digital repository enables optimal compliance and comprehensive reporting. By centralizing the contract repository, you can ensure that your employees work with the latest contract templates and use the latest clauses. In addition, you can empower your mobile staff by giving them access to the platform through a password-protected website. This way, the latest contract templates and clauses are available to all authorized employees at any time and from anywhere. An optimized business process offers contractual responsibility. From application to approval, each contract is bound by compliance standards. Contract management software such as our Express and Premium products work natively with Microsoft Word, so per-user change tracking and version control is done for you. This ensures that no critical terms are removed and that the right people have modified the document accordingly, giving you control over your contracts. Now, before we head over to Google to research contract management options, ask yourself, “What are the thorniest issues my business faces?” “Where could we do better?” “What part of the process helps my organization achieve its goals?” These may be ways in which a company tries to track its contracts, but they are not a contract management system.

Far from it. And let`s not even start with the stories we`ve heard about the mind-boggling frustration of time wasted on legal and administrative inefficiencies, such as losing the “master” version of a draft in a series of email red lines, suing sellers for the fully executed copy of an agreement, or reading previous contracts. to find a precedent label. To learn more about what a contract management solution can do to improve your business impact, download the Corcentric CLM Starter Kit. .