Contract management software used to be for record-keeping or legal auditing purposes only. Today, though, management software have become enterprise-level solutions. Since organisations are always looking for ways to minimise costs and risks while maximising revenue, streamlining processes has become a need rather than a want.
Your business no longer has to deal with paper contracts, in-person signing, and physical storage if you use management software. With these, you can also automate and digitally store other documents like supplier agreements, sales orders, procurement contracts, and more.
Benefits of using contract management software
In a study by the Aberdeen group, they evaluated the impact of contract management solutions on the workflows of companies that perform above the industry average. Executives from these companies highlighted savings and transparency as the greatest benefits of adopting this technology. The researchers found that because of contract management software, best-in-class organisations saved much more money compared to their peers.
They were also able to get contracts approved in 45 per cent less time than comparable companies. Apart from this, they have more transparency regarding contracts. The visibility that this type of software provides lets various departments review and evaluate performance and compliance. Software solutions also provide features that help them monitor event triggers like discounts, rebates, and renewals, which make their relationship management easier.
How to choose contract or supplier management software
At the core of every relationship a company undertakes is a contract. Whether it is with external parties like suppliers and clients or internal ones like employees, a contract outlines the responsibilities and rights of both the organisation and the party with whom they have an agreement. The business and its partners have an obligation to fulfil the terms in the contract.
As such, it is important that you choose the best contract management system for your company. There are various solutions on the market, and some of these are more equipped to assist you in the tasks your business has to accomplish. You must know what to look for in a contract or supplier management solution.
Analysis and support for all contract types
Your software should be able to host everything from procurement contracts to ones for sales, wage contracts, and even non-monetary ones. Ideally, you should be able to build a library of templates and clauses that you use frequently. That would cut back on time it needs to generate new contracts, especially ones that you often use. It would also be helpful to have a feature that analyses the text for changes and major discrepancies.
Integrations and notifications
Your software of choice should also enable integration with other software like the ones you use for accounting and procurement. In addition, it should be able to fit into your business’s IT systems; contracts should not be left vulnerable to attacks or data loss. Your management system should also have security features that allow only those with clearance to access sensitive information.
Check your prospective management software for features that enable alerts, like auto-notifications of important dates within contracts. It will help your officers send out the necessary invoices, make payments, and send requests or proposals when you should.
An effective software solution prevents inefficiencies, shortens the time it takes to onboard a supplier or employee and minimises risks. Your contract management software should also help you comply with organisational and government regulations.
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