Companies have long used software to organize and store contracts for review, but to effectively manage these documents in the twenty-first century requires a more comprehensive approach. The rapid growth of contract management automation speaks to the need for increased effectiveness in this area.
Firms around the globe are paying attention as reputable sources publish the statistics. Harvard Business Review reports that contract inefficiencies cause firms to lose 5% to 40% of value on individual contracts.
Companies interested in long-term growth are turning to cloud-based software that integrates AI for the purpose of increased efficiency and productivity. They’re also attracted to its ability to protect them from the issues of data loss and other liabilities.
Benefits of Automated Contract Management Solutions
There are five primary benefits of using automation in your contract management:
- Improved access and organization
- More efficient template standardization
- Easier to monitor workflow in real-time
- Access to data from anywhere
- More secure storage and data protection
Improved Access and Organization
Companies of all sizes routinely need to identify a specific agreement or piece of data and usually invest valuable time to access the information they need. Contract management software allows these organizations to not only organize their contracts but also search and sort based upon specified criteria across the entire platform. The result is expedited data extraction, reduced staff hours, and the virtual elimination of “lost” contracts.
Efficient Contract Template Standardization
The legal department wants to eliminate undesirable contract variations across various templates. Where appropriate, it’s imperative that a level of consistency exists amongst all its agreements and individual provisions. Contract management automation allows firms to easily generate and update contract templates both individually and collectively in a centralized location, providing consistency and control. Modernized and standardized templates immediately lend protection and credibility to the company’s agreements.
Contract management software also makes it easier to personalize contracts when necessary, without introducing unwanted variations into the templates.
Monitor Workflow in Real-Time
Contracts are the life-blood of a company, which makes tracking status and dates a top priority for the proactive professional. Automated contract management software analyzes data and uses reports to inform users concerning the status of all contracts, including approval, renewal, or required signatures. These systems also alert users to critical dates regarding contract expiration, renewal, and related obligations. Automated contract monitoring drastically minimizes associated legal and financial risk in the area of contract fulfillment.
Mobile Data Access
Emergencies happen, and urgent matters can’t always wait until a more convenient time. Contract management software provides remote capabilities to every permitted user, allowing secure access to contracts and data from any mobile device. Mobile access allows your organization to stay ahead of problems and to provide instant client support when needed.
Data loss is devastating to everyone involved, and even with professional IT support, system errors and breaches remain a continuous threat. Contract management automation provides high-level security with features such as:
- Offsite, cloud-based storage
- Frequent automatic backups
- Data encryption
- Admin-controlled user permissions
- Multi-level user authentication
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The ROI of Automated Contract Management
As contract management automation decreases document related man-hours, your team spends less chasing down papers and hunting for files. Instead, they can focus on following up with potential customers and vendors.
This increased productivity allows you to close more deals, take advantage of new opportunities, and avoid disputes caused by miscommunication. The return on investment will come both in the forms of higher profits and reduced costs.