Contracts are vitalto organizations. It’s how deals are formalized, and revenue generated. But too often, contracts are a slow, laborious task, that often chew up too much time. And the result isn’t always great. Turning contracts from a bottleneck to the lifeblood of your organization can be done with the right CMS.
Getting bogged down in paperwork leads to tasks grinding to a halt. Staff have to go find the paperwork, get relevant departments to sign off on their sections, before the contract is passed off to the next stage. Doing this manually, requires a lot of paper documents as well as emails and spreadsheets.
The disadvantage of managing contracts this way is that it creates a bottleneck which slows everything else down. It chews up valuable time and resources that should be used to fulfill contracts, make money, keep clients and vendors happy, and so keep them all coming back to work with you.
That’s why you want a solution for your contract management that stops it being a bottle neck and turns it into the free-flowing lifeblood of your organization that it should be.
3 ways to remove the bottleneck effect manual contract management can create
Here are three simple ways you can make your contract management process streamlined and more profitable:
1. Remove risk in the contract creation phase
More often than not, a poor contract is the result of a poor contracting process. Doing contract management manually can often lead to gaps in communications. The wrong people sign the wrong part of the document. All of which slows the process right down, and causes frustration on all sides.
To have the most efficient contract management lifecycle you want to avoid contract back-logs and contract slippage—either quarter to quarter or year-to-year. Because at the end of the day, poor contracting process equals lost business or delayed revenue.
2. Ensure terms and conditions are signed off by legal
Sounds obvious, doesn’t it? Make sure your legal department looks over the terms and conditions of the contract. This ensures your organization doesn’t shoot itself in the foot.
Keep in mind, once you sign a contract it’s a legally binding document, so you want to make sure that everything is done properly the first time.
With contract management software, it’s easy for your legal department (or advisor) to review the contract, and make notes in real time that can then be sent back to the relevant department. Which will save you time, hassle, and potentially save you from loss of revenue or new business.
3. Improve contract management systems
How are you managing your contracts? Are you still using filing cabinets, and emails and spreadsheets? If so, are you finding that sometimes things fall through the cracks? That the process is always delayed while some department tracks down the relevant file?
The simplest fix for this is improving your contract management system with contract management software. The right software will help your organization with the entire contract lifecycle. Helping to speed up tasks; streamline approval processes; speed up acquiring signatures; and help with contract renewals.
Remove the bottleneck effect manual contract management can create
Nowadays, manual contract management is unnecessary. Especially as there is a far better option. One that can help remove the bottleneck associated with the contract management lifecycle. And that solution is contract management software (CMS).
No matter your industry, if you deal with contracts on a daily basis, the right CMS will help improve your organization’s productivity and profitability.
ContraxAware is one of the leading CMS providers, and have helped organizations across a wealth of industries. If you would like to know more about how contract management software can help you, please contact us today.
FAQs about solving poor contract management
These are some of the most frequently asked questions we get about solving poor contract management. If you donot find your question here, please feel free to contact our team.
What are the risks of poor contract management?
The risk of poor contract management includes: delayed contract negotiations, loss of revenue, and potentially being stuck with a contract that doesnot deliver on what your organization needs.
Why is digital contract management better than manual?
Digital contract management is more efficient, faster, and easier to track than manual contract management. It can demonstrably improve the entire contract management lifecycle for all parties and departments concerned.
What can contract management software ensure?
Contract management software, when used properly, can ensure all departments are kept up to date, and can make changes in real time. There is no need to send paper contracts from department to the next.It is all cloud-based, making contract management more convenient, more secure, and easier to manage.