The benefits of contract management
In this day and age digitization is indispensable to grow as a company. Yet there are plenty of companies who keep their contracts physically, spread across the organization. This causes ignorance and a lack of understanding when it comes to contracts. Luckily, most organizations start to realize the advantages of having contract management in place.
1 Managing your contracts saves you money
Monitoring your contracts on a centralized digital platform ensures that you do not miss out on important information and that you maintain a clear overview.
Contracts are often automatically renewed, for example. In most cases, this is convenient but it could also turn out very costly when it happens without you knowing or wanting it. The same goes for indexing your sales contracts on time, each year. Both situations can easily be improved by using a contract management system that notifies you when an important milestone approaches.
2 Online contract management saves time and space
Every company deals with contracts. Yet, still so many save all of their contracts either in their personal mailbox or in physical boxes in a separate room. This way, it could take forever to find the exact contract you are looking for.
Managing your contracts in an online tool, saves you a great deal of space. The only place you ever have to look for a contract is on your computer or mobile device. Having a thorough search function will also reduce the time you spend searching for the right information in the right contract. An hour worth of manually going through physical documents or folders on your computer is automated with a couple of clicks.
Having entire rooms or parts of the office dedicated to keeping contracts is outdated. Imagine what you could do with all the extra space. Still keeping your contracts physically also exposes them to certain risks. Your contracts can be damaged or they become accessible to unauthorized people. Contract management helps you eliminate these risks.
Imagine all the information you need to know about a contract is constantly available, anytime and anywhere. Contract duration, agreements, renewal possibilities…
Today, it is no exception that different departments within the organization work together. Contract management allows any department to easily access the information they need. This is especially convenient in times like these, where working from home is something that happens more and more.
Closely monitoring your contracts is crucial when dealing with suppliers. It still occurs way too often that a contract disappears in a drawer after the deal is closed. Prices, for example, can easily fluctuate and become higher than initially agreed.
The ability to regularly check on the terms that you agreed on puts you in a stronger negotiation position, according to Owe at Halvorsen & Co law firm.
5 E-signing as a part of efficient contract management
An important part of modern day contract management is signing your contracts digitally. This is as safe and as authentic as a physical autograph but offers significantly more comfort. Furthermore, e-signing saves you time and money because you no longer have to double or triple check with a colleague if a contract has been signed. Most e-signing tools offer a clear overview of each contract’s signing status, facilitating proactive follow-up. Last but not least, e-signing is kind for mother nature as you no longer need to print contracts.
The benefits of contract management software according to Steven Debrauwere (CEO, Contractify)
How can you get started with contract management in no time?
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