As the pandemic reshapes our economy and our workplaces permanently, we have heard a lot about business digitization. As professionals are mandated to work from home, the need for digital centralization is becoming more and more critical.
Long gone are the days when you could just walk into a coworker’s cubicle or office to discuss the next contract you are working on.
This is why there is a growing trend of businesses requiring a central digital contract management software to get their procurement, vendor management, and sales functions completed.
This article will discuss seven reasons why digital contract management software is essential for your business.
Reason #1: Improve Contract Visibility
The best contract lifecycle management software will centralize all the documents related to the central data center’s contract process. This will automatically provide better visibility of the contract to the stakeholders.
Improving contract visibility will ensure your team is working with the latest versions of contract templates and documentation. This centralized visibility improvement will also mean your remote teams can work on the contract from any location at any time with authenticated access.
This is very valuable, especially in a situation where much of your staff is now working from home – due to the pandemic.
Additionally, all the clauses from legal and administrative loose ends are all neatly tied to automate and centralize the contracting process.
Reason #2: Improve Contract Compliance
An efficient contract management software will improve accountability. As team leaders and managers gain access to where a contract is in its lifecycle will mean there will be no slowdown or dead zones where a contract is stuck.
This software will also ensure the teams are doing exactly what is required on their part to progress the contract lifecycle within a deadline and timeline that they are accountable for.
Reason #3: Centralize Document Management
A good contract management software will mean there will be no need for stuffing filing cabinets with paper trails or having to outsource to a data storage center.
You will be able to scan the documents directly into the software, and the OCR technology will automatically digitize the words and clauses of a contract. You will also be able to access documents and contracts for audits and reviews from any location, including remote locations.
There will no longer be a need to have someone scan a document from an office to a team member.
Reason #4: Ensure You Don’t Miss a Renewal Date
An automated centralized contract management system will help you to never miss a renewal date of your customers’ contracts. Successful renewals of contracts ensure increased customer retention.
You can set up alerts and triggers in the software that will prompt your sales and customer success teams to be notified of the 60, 90, 180, 240 days milestones of a contract to ensure they are doing the needful to move the contract lifecycle along to a successful renewal of the contract.
A contract lifecycle management software will ensure you will never miss a renewal date again.
Reason #5: Improve Commitment to Complete
Sometimes contracts are stalled at the hands of the approver. A centralized digitized contract management software will enable you to ensure the approvers and authorizers are more committed to completing their critical steps of approval on time.
There will be no more need for a sales rep running around to the management teams for approvals on quotes and terms. Even when the executives are on the go, they can access a contract, sign on the fly, and complete their steps in a timely manner.
Reason #6: Reduce Approval Times
The workflow of a contract lifecycle management is automated, and the software progresses through the next steps. The software will create a to-do list and progress it automatically to the team member and approver as soon as the steps prior are completed successfully.
Sales managers can also use the software to predict the stage of the contract to ensure the contract is not stuck in a dead zone. This will also help in efficiently report on revenue forecasting, and sales funnel reporting.
Reason #7: Be Better Prepared for Audits
Audits of contracts and processes are a routine exercise for an organization who takes accountability and compliance seriously. This is where software that centralizes and digitizes all contract documentation comes handy. You will be able to access a customer or a vendor contract from just a click of a mouse. You will have a full track record of how the contract came into existence with notes on negotiated terms and payment terms, etc.
This will help your organization be audit-ready, whether it is to assess if the workflow and compliance with company policies are happening at healthy levels. An accountant audit will also be easier to conduct with the help of a contract lifecycle management software.
Contracts are the lifeblood of an organization. Contracts are how resources are acquired, sales and revenue are materialized, and human capital is managed efficiently. Organizations have been using archaic paper-based contract management system or outsource to large data storage centers for digital contract storage.
However, without a centralized, integrated contract management software, efficiency, and accountability is strongly compromised. An ideal software will be easy to integrate and will centralize contract documentation seamlessly.
Keep in mind that you will need to carefully select the software that works with your IT systems, workflow management systems, budgets, and any other software you use in the organization, such as CRMs.
In the post-pandemic economy, efficiency will be the key to success. Considering that a large percentage of your staff will be working from home in some form or the other, your organization will be under pressure to ensure you have reliable software that your users can access seamlessly.
A centralized digitized contract management software will become crucial for your success in the future. The time to make the transition is now. Good luck!