So really what is contract management? It is exactly as it sounds. It is a software that manages a company’s contracts and more. There are plenty of benefits that follow when you incorporated a Contract Management System. Regardless of how big your company is, automating your office processes would bring so much success to your business. As technology evolves, more and more ways are being created to make the lives of office managers easy. For example, requirements contract have become more efficient with a Contract Management System. With a Contract Management Software, you can ensure that everything runs smoothly in your company.
Research shows that companies with mismanaged contracts lose over 9% of their annual revenue. This is a potentially huge amount that companies can use for future expansion. With competition getting fiercer, it would be great for you to learn how to manage your assets properly.
In an article titled “What is contract lifecycle management?” Jeffrey Miesbauer explains that companies across key industries have to manage the life cycles of their contracts effectively. If they don’t, they face greater risks, declining revenue, and damaged reputations.
Benefits of a Contract Management System
Here are some of the benefits of a Contract Management System.
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Quicker Contract Signing Process
The Digital Age has made everything faster. It is just natural for automation to make the contract signing process. Similar to how communications have become so much quicker. You can send multiple drafts of a contract to your client within seconds.
Redrafting of terms will also take lesser time as it can easily be done over the web instead of the traditional way of having to meet over and over again just to go over certain terms of the contract. When you integrate a Contract Management System such as the one provided by Contract Hound, you whittle down the Contract Signing Process into mere hours.
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Contract Visibility
The terms of a contract can get confusing and so easy to forget especially when you are dealing with dozens of dozens of contracts. An automated Contract Management System will give you full visibility of all your terms so you can make sure that you follow through with all the agreed upon terms.
One of the biggest problems that companies face is that they do not meet the terms of the contract leading to non renewal. This is not due to incompetence but rather the natural tendency of the human mind to get lost in the mix. With technology, you can now see each of the terms of the contract and make sure your company doesn’t lose clients.
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Risk Mitigation and Analytics
Your company will be taking a lot of risks. However, one of the best things about a Contract Management System will allow you to mitigate the risks. It will allow you to analyze some of the decisions that you might take to ensure that you don’t take too big of a risk.
For example, when you are faced with the decision of whether or not to renew a contract with a certain client, you can check first whether they are performing properly. If they are not able to deliver then there is a certain amount of risk that comes into renewing their contract.
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Improved Contract Management
An automated Contract Management System will improve the contract management of your office. Companies with a manual Contract Management will need an entire team dedicated to just keeping track of all the contracts and ensuring that everything goes smoothly. This is obviously a waste of manpower in the office — manpower that can be used for better office processes.
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Negotiate With Overseas Clients
Digitizing your Contract Management process will allow you to negotiate with overseas clients. With just milliseconds, you can communicate with your clients even though they are overseas. One of the most time-consuming and expensive projects of a company is to get overseas client.
Without an automated Contract Management Process, companies have to send physical copies of the contract to their client again and again until it gets signed. Normally, a company employee also has to accompany the contract which adds more to the expenditures.
Automating this process will also allow you to record all the negotiations just in case of small altercations.
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Better Problem Solving
By consolidating all of your contract data and giving you a full visual, you can easily identify any problematic aspects and cut it off its roots. You may also be able to detect any inefficiencies in your office. No matter how sure you are that you are runing your company properly, the chances are there still are inefficiencies that you missed.
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Easy To Use
A Contract Management System is very easy to use. It can sound very intimidating integrating a software to replace one of your main processes but contrary to popular belief, it is very easy to use. With a user-friendly interface, anyone can access a Contract Management System and use it properly without any difficulty.
In conclusion, there are a lot of positive benefits that come when you integrate a Contract Management System into your company. It can help with growth and expansion while also improving the processes inside. No matter how you look at it, getting a Contract Management System can be one of the best things you ever do for your company.