contract-management 8 benefits of contract management software
Contract management software serves as a central software for companies to handle all their contract processes. It connects with existing systems, automates the entire contract lifecycle, and improves contractual relationships. Ultimately, this leads to a more efficient and streamlined contract process.
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Organizations use contract management software to create, review, negotiate, approve, sign and track contracts. It replaces the old and ineffective manual management of contracts and companies save a lot of time and money. At the same time, you also reduce contract risks by always keeping track of all your contracts digitally. Also, contract management software allows departments to handle contracts themselves without significant input from the in-house legal department.
What are the benefits of contract management software?
As companies grow and increase in size, it is usually impossible to achieve effective contract management through manual activity. At this point, it is advisable to opt for contract lifecycle management software.
Companies that invest in an effective contract management system notice significant improvements in their operations. The benefits are numerous and below we would like to list some of the most notable ones:
1. Faster business processes and decision making
Anyone who regularly creates contracts knows how time-consuming and error-prone the processes and reconciliations behind them can be. And it gets much worse when you have to manage multiple contracts every day. Using contract management software makes this process much easier and faster.
With fynk, you can use templates and create a contract automatically with just a few clicks. This digital process also allows for collaboration between teams and individuals across the organization. Digital signatures and negotiation processes are other features that make for faster operations and therefore faster decision making.
2. Easier collaboration and file sharing
Contracts typically require input from multiple departments, which means contract quality can suffer without proper collaboration. The sales team may need the legal department to review legal terms, or purchasing may want to coordinate with marketing. This is time-consuming.
Contract management software makes it easier for employees from different departments to collaborate on contracts. Stakeholders can review and approve changes from anywhere without worrying about contract version control or risking working with an outdated copy.
3. Improved Contract Management
Users can better manage contracts with contract management software. They don’t waste valuable time searching for a specific contract in file cabinets or email inboxes. A contract management platform can also integrate with other types of software. This can help streamline business processes and allow users to access all relevant information from a central repository.
4. Improved Compliance
When it comes to contracts, compliance is of utmost importance. After all, if a contract is not compliant, it could potentially be void if challenged in court.
With manual processes, it’s relatively easy for things to fall through the cracks during the drafting and signing stages. If an important clause is inadvertently omitted or mislabeled, no one will know about it until a legal issue arises later.
Therefore, contract management platforms ensure compliance by:
- Track and report key data, both for upcoming deadlines and past performance.
- Store all contract information in one place so it is not lost or misplaced.
- Provide a single, centralized system to ensure consistency in contract language and approval.
5. Increased productivity and customer service
A manual contract management system requires a tremendous amount of staff hours. Employees must spend time searching for files, tracking down missing contracts, updating and managing spreadsheets, manually entering data into the system, and repeating tasks due to errors. All of this takes away valuable time that could be spent on other high-value tasks.
Contract management software automates most of the manual tasks performed by your staff. It provides a central repository where all your contracts can be stored and accessed electronically, eliminating the need to search for missing files or create reports manually. It automatically notifies you before important deadlines so nothing is overlooked. It can also automatically generate reports for you at regular intervals, and provides simple workflows to keep everything in view at all times.
6. Improved Contract Transparency
When you store your contracts in one place, authorized employees have a better view of what agreements are in place and how they are set up. Approaching the expiration date of a contract is an opportunity to renegotiate or reevaluate the agreement. Another benefit of improved contract transparency is that it increases accountability. When everyone can see who has access to contract information, it is easier to keep track of who is responsible for the overall health of each agreement.
7. More secure file storage and backup
Contracts are important contracts with sensitive information. Securely storing contracts in a manual manner is usually not completely feasible. Modern contract management tools use high-end encryption features and passwords to store files securely.
It’s the same with backup. Physical contracts can be lost or destroyed by water, fire and other elements. By storing files in the cloud, the management software is able to ensure a secure backup, eliminating the risk of damage and loss.
8. Scalable operation
Businesses always strive for growth and especially fast growing businesses face challenges. Therefore, a scalable solution is needed to accommodate the growth. As the customer base of an organization increases, the contract requirements also increase. This creates a bottleneck for businesses, but with the right contract software, it is easy to adapt to the newer requirements.
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