Contract management processes begin with the identification of contracts and essential papers that support a contract’s purpose. Contracts are essential for a business since they serve as the link between the company and any other entity. Because contracts are so important, manually drafting them is time-consuming, especially in error-prevention operations. To address this issue, contract management software has been developed.
Contract management is a critical part of business process management that is frequently overlooked. It is significant because, technically, any interaction between a business entity and an individual (whether an employee, a customer, or a member of the general public), or an organisation involving an exchange of products, services, or revenue is governed by a contract agreement that states all terms governing the agreement.
In other words, businesses must effectively manage their contract agreements in order to generate more money and pay adequate remuneration to all parties involved in the arrangement. Contract management can be defined as the practice of managing a business institution’s reputation and interactions with other business entities. Before we discuss the benefits of adopting contract management software solutions, let us first review the evolution of contract management processes to gain a better knowledge of the various approaches used over time.
The Start of Contract Management Procedures
Business interactions were drafted out and signed utilizing analogue means of linking contracts in the early years of business processes, before technology automated the entire world of business. In general, these procedures were slow and incorrect. As a result, there was a high need for digitalization and automation in the business. Contracts are now emailed, faxed, or scanned, since computers have gradually replaced typewriters.
Until the advent of eSignature, the most significant disadvantage was the time required for both parties to endorse contracts (the electronic signature). The e-signature was signed with a pen and took only a few seconds to complete. The delay hampered corporate procedures, income creation, and overall company growth and development.
In addition to eliminating contract signing time, e-Signature saves businesses the cost of printing, scanning, faxing, and/or posting physical documents for each contract signed. Businesses benefit substantially from increased productivity as a result of implementing this easily adaptable contract signing strategy.
Elimination of Productivity Loss
Prior to the digitalization of business operations, paperwork was the norm of the day, and delays were unavoidable when dealing with corporate procedures via paper and pen. However, since the adoption of digital methods of business process management by business institutions, productivity has been seen to be at an all-time high. This is why, over time, corporate executives began to use digital strategies such as contract management software solutions.
The digital approach to managing business processes introduced organisations to the concept of a superior storage solution, the internet cloud, as compared to old bookkeeping procedures. Cloud-based Customer Relationship Management (CRM) software and other cloud-based Business Process Management (BPM) software solutions began to provide data storage and analysis services, quickly displacing file cabinets and brainstorming boards. These new record-keeping technologies prompted a transition away from manual contract administration.
Even with these technological solutions, time-wasting in contract management could not be eliminated because sales people were forced to copy out customer details from CRMs in order to construct each new agreement or proposal, resulting in the danger of human error and wrong results.
Aside from the danger of human error, the information provided was never adequate, and simple mistakes while preparing the contracts could jeopardies the entire arrangement. Furthermore, manually establishing and administering contracts required a significant amount of time that could have been better spent developing and implementing innovative business ideas and concepts.
After reading this article, we hope that you will have a better understanding of how to manage contracts using a contract management system. If you’re looking for a way to organize and streamline your document sharing processes, we can help. Our solution is easy to use and will save you and your team time and money while streamlining the process of keeping track of important documents.