Why Should Your Business Use Automated Contract Management System?
Are you a business owner?
If you are, you must understand that every business needs some kind of contract to keep it going. A business of any kind can’t survive without contracts. Contracts can thus be called the lifeline of any business.
However, as your business carries the burden of more contracts, the number of contracts you have in place may become very complex to manage. Whether you are a small company or a large corporation, contract manage will inevitably be a time consuming process.
That being said, for business that have loads of contracts to maintain, there is a better and more organized system which can be used to properly manage all contracts. This is called an automated contract management system, and its use is of the utmost importance when managing a variety of contracts. Failure to do so can leads to distractions results and may even lead to losing clients and a loss of reputation within your given industry.
This is why automated contract management plays a pivotal role in assisting you in an organized and timely manner during the entire lifecycle of contracts.
In this article, you’ll find 6 benefits of the automated contract management system which will offer a great helping hand to your business (and increase your productivity), while dealing with huge loads of contracts.
- Better Understanding of compliance and monitoring portfolio
One of the most obvious benefits of automated contract management systems is that it offers companies a more comprehensive understanding of compliance and the ability to monitor client portfolios. The ability of companies to standardize the language and process surrounding contracts is the pathway to increased compliance and efficiency.
With an automated contract management system, the standard legal and compliance templates, which are already approved beforehand, can be applied by to large variety of contracts. This allow for the system to manage all sorts of deviations within an acceptable level if there are any changes that need to be made from the standard language of a contract.
- Improved Sales Cycle Times
With the automated contract management system, businesses can move contracts speedily from one level to another. With such systems, you can master approvals and workflows and the entire processing of the businesses becomes rapid.
With such an automated contract management system, the person next in line gets notified as soon as the contract gets to the stage where their involvement is necessary. This ensures that the contract seamlessly moves from one stage to another without any issues.
With an automated contract management system, you can hit your sales goals easily. As shown in the data below, organizations that utilize an automated contract management system are offered the following benefits:
- Improvement of contract renewal rates by 25%.
- Increase in revenue by 1 to 2%.
- Cut in contract cycle time to around 50%.
- Sharing critical information with your salespeople made easy
Because the details of contracts are very delicate, sharing any information with an unwanted person can result in the loss of a contract. However, an automated contract management system makes the task of centralizing all contract information much easier. This makes the process of managing contracts a win-win scenario.
Consider this scenario: your key point of contact leaves and now passing on the information and the account is required. The new person in charge – who doesn’t have the information offhand, needs the complete documentation for the deal to close and to avoid any last minute hiccups.
To avoid such last minute troubles and errors, you need an automated contract management system where the critical information is stored in one place and a person can quite easily get the needed details to complete the task.
- Achieving Cost Saving
As everyone knows, flying blind can result in an unwanted expenditure of energy. If everything is directed properly, things can be managed in a much better way and can be completed with higher accuracy and more efficiency.
With contract lifecycle management tools, you are offered broader sourcing and also have a procurement strategy, which helps you in avoiding costly mistakes.
Additionally, you are given a more efficient way to track down the contractual obligations, which can help you in checking the risks and contract leakage. The overall significance of the automated contract management system results in much better-improved efficiency while dealing the contracts and a big amount of savings due to potential mishaps.
- Reduction of Risks
With an automated contract management system, there is a lesser chance of costly mistakes. Because humans are prone to committing mistakes, the chances of errors in such a system are reduce. This is because the system captures necessary information of all kinds, ranging from the request to the approval, thus allowing the sales team to focus on closing deals without hassle.
- Strengthening partner and Customer relationships
An automated contract management system offers a chance to strengthen both business partnerships and customer relationships. With a tighter control over information and a better reorganization of information, the flow between your business and client’s requirements remains smooth. This will allow your company to be in a better position to maintain the needed workflow for contracts.
With an automated contract management system, you are offered a great deal of time to focus on and manage your resources in the most efficient way possible so that you can get the most out of your channeled relationships.
An automated contract management system is a must for leading organizations which have an appetite for progress ahead carry their work in a more collaborative and organized manner. Such systems reduce the errors, maintain a better workflow and help in organizing the contracts better, with the ultimate goal of providing support at every level of the contract lifecycle.