Businesses large and small are always looking for ways to cut costs while preserving the quality of their products or services. It makes sense, then, that managers would be wary of adopting fancy new technologies, especially without evidence that those technologies will be worth the time, effort, and money spent implementing them.
Contract management software is a perfect example of such a tool. Maybe your company is used to handling paper contracts with an analog system. You may be wondering, is contract management software really a must?
If you ask us, the answer is a resounding YES.
It’s not just us who think so. The experts over at the International Association for Contract and Commercial Management (IACCM) predicted just last year that through digital transformation of sales and contract management, businesses could see a 9% boost in profitability. Later that year, IACCM went on to highlight a handful of reasons to digitize your contract management processes, including the following:
It’s what the big guys are doing. Many point to digitization and automation as the reason or the success of major corporations like Amazon.
Digitization streamlines inter-organizational processes. As the commercial world becomes ever more connected, breakdowns in communication and performance between organizations come with higher risks. Digitization helps everyone plug in to the same systems.
It’s the future. Businesses today rely on more contracts than ever before, and experts agree that’s not changing. Combine that with the fact that current trends arc toward automation and digitization, and it’s clear that business will need to adopt digital contract management in order to survive.
The Benefits of Contract Management Software
We’d argue in no small terms that contract management software is an essential tool for new, growing, and large businesses alike. But you might wonder, is it really worth the cost?
Absolutely. Contract management software is an essential investment precisely because its streamlining effect actually reduces costs in the long run. Let’s break down some of the benefits below.
- ● Most contract management software stores your digitized contracts in a secure cloud-based repository. With advances in cloud security making cloud storage safer than ever, this is a huge boost to efficiency, preventing contract loss and misplacement.
- When your contracts are all stored in one place, you’ve got much faster, easier access. You’ll not only spend much less time searching for lost contracts, but you, your team members, and your clients will all be able to locate and share contracts with relevant parties faster and more easily than ever.
- Good contract management software should come equipped with integrations that help your system play nice with other software. Look for integrations with programs like DocuSign so that clients can sign electronically whenever, wherever they need.
- Digitized contracts are much easier to locate and search. Your software should let you keyword-search digitized (and even scanned) documents for particular data, like party names, contract types, or specific clauses. Need to find all contracts that contain auto-renew clauses? With good contract management software, it’s as easy as using Google.
- With features like date tracking, email alerts, and calendaring, the best contract management software makes keeping track of deadlines and payment dates a breeze. Automated monitoring is more accurate monitoring, leaving your team free to focus on the big picture.
- It’s not just renewal dates and payments you need to keep track of. Good contract management also means monitoring the scope and deliverables of a particular contract – and making sure all parties actually comply with the agreed upon terms. With its search and calendaring capabilities, contract management software allows for much faster, more accurate review and auditing processes than storing and searching through paper contracts.
- Storing digitized documents in the cloud reduce storage and security costs by eliminating the need for physical space.
- Contract management software makes searching, monitoring, and auditing much faster. With this increased efficiency, you may also see a reduction in labor costs.
- With better tracking and monitoring, you can catch project and cost overruns earlier. Contract management software increases transparency overall so you can have more control over how the terms of your contracts are actually being carried out.
Contract management software isn’t an added cost – it’s an investment that will eventually pay for itself by boosting efficiency, reducing risk, and cutting spending down the line.