Contract Management System
The evolution of technology has greatly improved our ability to streamline helpful organizational tasks. While these systems are crucial to a well-run business, they were once seen as a burdensome expenditure of time, however, that has changed now that these tasks can be carried out by software. Managing contracts is a hugely important part of keeping a business running smoothly. Now that it can be done effectively with the help of technology, it is an easy addition to your management system.
What is a Contract Management System?
Generally speaking, a contract management system is any process used to create, negotiate, execute, and track contracts. With the implementation of technology, this system is streamlined with software that any business can buy. These systems are intelligent and can be used to archive contracts both old and existing, as well as improve the process flow of contract drafting.
What is the Typical Contract Management Process?
Contracts go through many different stages from inception to fulfillment. A management system can assist in automating and tracking this process. The process can include the following steps:
- The initial contract request: A system can allow a salesperson to fill out specific sections and submit a contract request.
- Building the contract: After the initial request is made, the system can either build a contract from a template or notify involved parties to generate and customize the contract as needed.
- Negotiation: The system can track changes, identify inconsistencies, and offer a keyword or clause repository if the contract requires negotiation and redlining.
- Approval: contract management systems allow you to monitor the approval process and send notifications and reminders to relevant parties.
- Execution: The system usually features an e-signature component, making signing easy and paperless.
- Continued access: an important feature of a contract management system is the ability to sort through contracts, integrate them, and use it as a library for reviewing, revising, and assessing contracts.
- Reporting and auditing: contract management systems can help make audits and compliance checks more efficient and effective.
- Renewal: an automated renewal process increases efficiency and revenue potential.
How Contract Management Automation Can Benefit Your Business
Like any other business tool, deploying a contract management system costs money. Your company will need to perform a cost-benefit analysis to determine if it’s the right choice. The following are some of the advantages of implementing a contract management system:
- Increased control of the contracting process
- Reduce the time of a contract cycle
- Mitigate risk
- Improve security and compliance
- Potential profit increase
- Fast and efficient contract renewals
- Cut employee workload
- Cut admin costs