Successful contract negotiation is\ncritical for the long-term success of your business. When big deals are on the\nline, even a small misstep can lead to financial loss. \n\n\n\nBut contract management is tough\nbecause most businesses have too many contracts to keep up with. PwC found that\nmost companies manage between 20,000-40,000 contracts. With such a high\nvolume of contracts, problems are bound to occur. \n\n\n\nIt\u2019s important to regularly audit your\ncontract management process. A quarterly audit will help you identify\nbottlenecks and areas where you may be losing money. And most importantly,\nit\u2019ll help you maintain strong customer relationships. \n\n\n\nHow to Audit Your Contract Management Process\n\n\n\nA quarterly audit is the best way to\nroot out any problems in your contract management process. This process looks\ndifferent for everyone but here are five areas you can start with:\n\n\n\nAccessibility \n\n\n\nWhere does your\ncompany store contracts and how easy are they to access? Too many B2B companies\nstill rely on a shared folder in Google Drive or worse, a filing cabinet to\nstore their most important contracts.\n\n\n\nThe problem is that\nat some point, one of your employees will need to access a document and they\u2019ll\nwaste valuable time searching for it. You should evaluate how your contracts\nare stored and how easy they are to find.\n\n\n\nTemplates\n\n\n\nContract templates\nmake it easier to draft and revise contracts. But if your company is relying on\noutdated templates, then you\u2019re exposing yourself to possible financial and\ncompliance risks. You want to make sure your templates are up-to-date,\naccessible, and easy to use.\n\n\n\nCompliance challenges\n\n\n\nCompliance issues are\na common problem in contract management. And they should never be ignored\nbecause they can affect your bottom line and hurt your relationships with your\ncustomers.\n\n\n\nDid you run into any\ncompliance challenges during the previous quarter? Where are these issues\noccurring and how you can avoid similar bottlenecks in\nthe future?\n\n\n\nChain of command\n\n\n\nMost companies have\n7-9 steps in their contract management process. There should be a standard\nchain of command for contract negotiation to ensure nothing gets missed. But\nnothing disrupts the chain of command like having key employees leave the\ncompany.\n\n\n\nHave any staff\nmembers recently left the company? Have any other significant changes taken\nplace that could affect the chain of command and slow down the contract negotiation\nprocess? \n\n\n\nSystems\n\n\n\nDuring every audit, you should evaluate whether there are any new systems you can implement. Let\u2019s say you realized during an audit that your company is storing contracts inefficiently. Is there any new software or system you can use to improve this process?\n\n\n\nGet online in minutes, implement in hours, realize ROI in weeks! Easy-to-use, helps you increase productivity, contracts & revenue. Available anywhere, anytime & on any device.Try a Free Demo today! \n\n\n\nFinal Thoughts\n\n\n\nIn the past, contract management often varied among departments with different employees following different guidelines. The final contract was usually paper-based and stored in the company filing cabinet down the hall. \n\n\n\nIf this sounds familiar, then the best\nway you can improve your contract management process is to automate it. Updated\nworkflows can make your contract management process easier to manage once\nthey\u2019re done.\n\n\n\nOne of the most painless ways to improve\nyour contract management system is by implementing a cloud-based contract\nmanagement system. This will make everything from storage to automation easier.\n\n\nPlus, once you have\nimplemented the cloud-based system, auditing your contract management process\ncan be done with less effort and in less time.