A contract is one of the most crucial pieces in an organization’s sales process. It clarified the transfer of value between the business and the customer, reducing the risks for both parties. It also serves as a living document guiding the business relationship.
If you fail to manage the contracts effectively, you must deal with increased costs and unnecessary financial and legal risks. If you still have not implemented contract lifecycle management software in your sales department, it’s time to consider doing so.
Here are the reasons why you should consider a contract lifecycle management software for your sales and even overall business processes:
Improves Document Management
With contract lifecycle management software, you do not need to outsource document storage or even use valuable office space for messy filing cabinets. The team can directly scan the documents into the system with optical character and automatic image recognition features to make all relevant documentation available from one location.
Increases Contract Visibility
Contract lifecycle management software enables improved reporting and compliance since you can store files in one centralized digital repository. That repository ensures the employees work from the latest contract templates from legal teams and use the most up-to-date clauses. You can also set a password-protected site available anywhere through an internet connection to authorize access. This allows authorized team members to open the latest clauses and templates anytime, anywhere.
Integrating contract lifecycle software into your business processes helps to reduce legal fees and eliminate unplanned service renewal costs. The software also offers greater visibility and insights, ensuring that your organization gets the best value on the investment you’ve made within a contract. If you link your sourcing and contract processes, you are more likely to have a higher profit percentage. You can track volume discounts, delivery time, and rebates to make sure you realize the negotiated savings in the sourcing cycle.
Less Approval Times
Automating the contract process with customized workflows helps to improve efficiency and expedite the review process. Contract lifecycle management software can help you create a dynamic workflow to-do list that you can use to scan all contacts. That way, contract managers can have better ideas and insights about the current state of affairs. You can also notify all the parties involved in the contract process by email to define the escalation procedures or remind them about the next steps.
Stays Prepared for Audits
Auditing features provide you access to the entire contract history in a matter of a few clicks. Since you can access them instantly, you can maintain the accuracy necessary for performing contract audits reviewing its efficacy for your business. You can also keep track of the entire audit process to ensure contract and legal compliance at all times.
Contract negotiation is only the first step in creating a defined legal relationship. Your organization must ensure that all the agreements and obligations are adequately managed. You can use contract lifecycle management software to keep all relevant information and documents updated and well-organized. The software can also provide advantages beyond contract management, from finances to team collaboration.