Many large businesses are familiar with the burden that comes with contract management. Most of the companies do this process manually, something that in the end is not only tiresome but also time-consuming. Not to mention, if this process is not handled in the right way, it can have a negative implication to the said firm. Annually, these businesses often deal with hundreds or thousands of contracts all with an individual set of stipulations. They have set deadlines, and many hidden risks which, if not corrected, can see the company overrun with costs and even risk being rendered non-compliant. Therefore, a firm should have in place critical contract management tools to get the most from the contract terms, which are pretty hard to negotiate.
The list of the benefits of contract management software is vast, and any organization that is running without such a solution may suffer significant losses. While spreadsheets and manual approaches are outdated and have no integration with high-end systems such as CRM and ERP, they also don’t have the organizational access or essential alerting. Below are a few benefits why any organization needs to consider having this system.
Sales cycles are shortened leading to increased revenue
Excellent software for contract management ensures that deals are closed in a matter of minutes once negotiations are complete. The result is a faster client provisioning, thus quicker realization of revenue. Also, deals are prevented from falling apart. Traditional contract management would otherwise take days or even weeks to fully execute a deal.
Availability of E-Signature brings out customer satisfaction
This software also has an embedded e-signature capability. In the year 2000, legislation was passed to provide for legal certainty and fraud protection, and this makes the digital certification even more authentic than its traditional paperwork counterpart. So, not only is this software for contract management preferred for its convenience and reliability, but also preferred for its speed and security, thus inspiring customer satisfaction every time.
Improves contract review and the approval productivity
With the system, employees and organizations now do more with less, in that the systems help them to avoid mistakes and improve accuracy. This system also helps in better all-around monitoring. The systems automate the common contract management processes and even streamline these processes to eliminate unnecessary steps.
Classifies contracts
Since firms deal with many contracts at the same time, having software in place ensures that these contracts are easily categorized. Categorizing provides that each is placed in its rightful place. For instance, there are those contracts that are expired, ones that are new and some that are ongoing. Classifying and storing them safely enables for easy retrieving when need be.
Alerts for milestone dates
Contract management systems will usually alert and notify one when a contract milestone is near, thus sales reps can have the customer contracts in place. At times they execute specific actions as needed by the milestone, which speeds up the whole process.