Why Should You Get A Contract Management Software?

Why Should You Get A Contract Management Software?

Written By
Joy Cunanan
Updated on
September 29, 2022
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Contract management is a highly difficult and challenging responsibility for any firm. A transaction may be hampered by, for example, a straightforward contract expiry inquiry or the search for the most recent contract version. Businesses have adopted document management systems (DMS) to address this issue and increase process efficiency. Modern firms choose advanced contract management software over a standard DMS for better management.

We have briefly mentioned the benefits of having a contract management platform in this article. This time, we will deep dive into what contract management software can do for your business – from something as simple as securing your digitally-stored assets, to helping you achieve significant milestones such as increasing your revenue by shortening sales cycles, among many other benefits.

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What Are The Benefits Of A Contract Management Software?

A contract management tool can help parties collaborate more easily, gain the necessary insight into contract data, and save time and money with very little risk. A contract management system is a superior method of managing contracts because it also handles tracking and negotiating. 

According to a survey, inefficient contract management software could cost firms $100 billion per year in lost savings potential. Effective software is required to lower supply chain risk and guarantee compliance throughout the entire supply/supplier relationship. To be successful with a product launch, a global expansion, hiring, and other events, you must use cutting-edge contract management software.

Reduced sales cycles result in higher closure rates and more money made.

In contrast to days or even weeks for conventional paper-based contract administration, deals can be finalized within minutes of the conclusion of negotiations when using contract management software. As a result, the provisioning of customers can happen more quickly, which accelerates the time to revenue. Additionally, it stops transactions from falling through until the paper trail catches up.

E-Signature capability raises customer satisfaction and improves internal efficiency.

Since the ESIGN Act of 2000, e-signatures have been considered legally enforceable. It is now widely accepted that digital authentication is more secure than a traditional pen-and-paper signature, and customers have become accustomed to it. Customers appreciate it since it is dependable and convenient.

E-signatures are welcomed by internal "customers" for the same benefits of speed, convenience, and security. Everyone's job is made simpler with e-signatures.

Instead of focusing on contract management, sales efforts might be directed toward selling.

The automated operations made available by contract management software, such as e-signatures, contract authoring templates, fast contract approval routing, and others, free up sales staff to concentrate their skills on making sales. The absence of paper-based administration's hassles will almost surely boost the mood of the sales crew. and content workers use their time more effectively in general.

Dates that are milestones are given alerts.

When contract milestone dates are approaching, contract management software can notify sales. These warnings assist in planning customer outreach and preventing missed opportunities. Many of the actions required by the milestones can also be carried out automatically by the software.

Consolidated and precise contract data is available.

Contract management software avoids confusion and inaccuracies by centralizing contract data in a single electronic repository, which is a common problem with paper-based methods. Permitted personnel have access to all contract information, which is current and full. Clerical errors are automatically detected before being inserted into papers, eliminating the possibility of using obsolete or insufficient information.

It is possible to strike a balance between compliance and negotiation latitude.

Tim Cummins, the CEO of the International Association for Contract and Commercial Management, argues that businesses shouldn't be forced to choose between one extreme or the other in a blog post about the conflict between contract compliance and the ability for sales to customize contracts to win business. Traditional thinking leads us to believe that in order to achieve maximum efficiency, lower costs, etc., we must create one process with one contract; alternatively, we must offer custom negotiation in order to be "responsive," but in reality, we should work on developing one option within a specific segment.

Contract management software supports this contract design for particular segments through contract authoring templates. Additionally, it offers greater sales flexibility while limiting rogue activities that could endanger the business with its library of pre-approved legal terms and customizable safeguards to prevent internal policy violations.

Data from contracts offers business intelligence.

Access to useful information in contracts is made possible by contract management software. It offers the opportunity to quickly run custom reports, see dashboards, and search for contract-related data. This enables businesses to examine their past contracts in order to find best practices, strategic possibilities, and issues that need to be fixed. The program aids in assessing the past to show the way forward.

Easier file sharing and collaboration everywhere.

Contracts typically demand contributions from multiple departments, thus if there are insufficient collaborative efforts, the contract may suffer. The legal team may be required by the sales team to investigate the law, or marketing and procurement may desire to work together. This takes a lot of time.

People from many departments can collaborate on contracts more easily thanks to contract management software. No matter where they are located, stakeholders may review and approve changes without worrying about document version control or running the risk of using an outdated copy.

You will have more efficient document handling.

With contract management software, users may better manage their documents. It is unnecessary to squander time trawling through file cabinets or email inboxes in search of a certain contract. Another type of software, like platforms for customer relationship management, may interface with a contract management platform. This can serve to simplify corporate procedures and give users access to all pertinent data from a single location.

Improve your compliance. 

Compliance is essential when it comes to contracts. After all, if a contract is contested in court and found to be in violation of regulations, it may be declared null and void.

Things can slip through the gaps during the drafting and signing stages when using manual techniques. There is no way for anyone to be aware of a crucial clause that has been accidentally omitted or mislabeled until a legal difficulty later on.

In order to assure compliance, contract management platforms:

  1. Tracking and reporting important dates for both forthcoming and past performance deadlines
  1. Preserving all contract data in a single location to prevent loss or misplacement
  1. Supplying a solitary, central mechanism to guarantee uniformity in contract wording and approval

Increase your productivity and customer service.

A manual system of contract administration consumes a significant amount of labor. Your personnel is required to invest time in finding files, locating missing paperwork, managing spreadsheets, manually inputting data into the system, and redoing activities as a result of mistakes. All of this consumes time that could be spent on other worthwhile pursuits.

The majority of manual procedures carried out by your workers are automated by contract management software. It offers a central location where all of your contracts may be kept and accessible electronically, doing away with the need to look for lost documents or create reports by hand. Prior to a crucial deadline, it will immediately notify you so nothing gets missed. Additionally, it offers straightforward procedures that make it simple to keep everyone on target as well as the ability to automatically generate reports for you at predetermined intervals.

Improve the visibility of your contracts. 

Authorized personnel have better visibility into which contracts are in force and how they are performing when you keep all of your contracts in one location. A chance to revise or reassess a contract arises as its expiration date approaches. The increased accountability that comes with better contract visibility is another advantage. It is no secret that keeping track of important dates, commitments and other obligations are pivotal to keeping business relationships healthy. It will be simpler to keep track of who is accountable for the overall well-being of each agreement if everyone can see who has access to contract information.

Secure your file storage and backup. 

Contracts include sensitive information and are significant legal instruments. With manual storage facilities, it is typically not totally possible to keep the data in contracts secure. Meanwhile, to protect files, contract management solutions employ sophisticated encryption technology and passwords.

The same is true of backing up. Physical contracts may disappear or be ruined by weather conditions like fire or flood. Management software can guarantee safe backup to avoid the dangers of damage and loss by storing files in the cloud.

Scale Up Your Operations With Lexagle. 

Businesses usually desire to expand, and expansion occasionally takes place unexpectedly. Therefore, maintaining the course of events will call for a scalable solution. The contract needs to rise along with the organization's customer base. Organizations experience a bottleneck as a result, but with the appropriate contract software, they can quickly adapt to the newest expectations.

With Lexagle, you can reap the benefits of fully focusing on expanding your business, because you have software that constantly works for you in the background. We streamline your contract lifecycle from beginning to end, employing automation techniques and artificial intelligence to assist you in all stages of contracting. We give you the power to collaborate securely, negotiate effectively and comply with obligations in a timely manner, all with a single platform. 

Why Should You Get A Contract Management Software?
Joy Cunanan
Joy is the Digital Transformation Manager at Lexagle. As a marketing professional in the Tech and B2B industry for over seven years, she is always on the lookout for the next best solution in the ever-changing online world. With a passion for helping businesses thrive and optimize operations, she shares her expertise in the power of contract lifecycle management and its capacity of easing the contracting process for busy organizations worldwide.

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