How to Speed up the Contract Cycle by Automating 7 Contract Management Processes

Organizations tend to juggle several agreements that are at different stages of the contract lifecycle. Using spreadsheets and taking a manual approach to contract lifecycle management (CLM) stands to incur losses. You need to stay on top of the process to reduce risks and maximize the value you get from your agreements. Even small businesses can now get their hands on an automation system that promises to speed up the contract cycle, increase productivity, minimize risks, and reduce costs.

Why is contract management software important?

Contracts dictate the terms of your business dealings. There may come a time when you’ll have to turn to your legal documents to settle a dispute or to claim what’s rightfully yours. A poorly prepared contract can easily spell disaster for your company.

If you consider the benefits by the numbers, contract management software looks like a worthy investment:

• Speeds up negotiation cycles by 50%
• Reduces contract management costs by 10% to 30%
• Decreases erroneous payments by 75% to 90%

Contract management involves overseeing the entire lifecycle, including leveraging clauses during negotiation, reviewing the document, and ensuring compliance. It’s a lengthy process that can be much more costly and error-prone when done manually.

A reliable contract management system automates the entire lifecycle to ensure you’re not exposing your business to unnecessary risks, penalties, or compliance issues.

Automating the contract’s full lifecycle

Document automation systems are optimizing the way businesses execute contracts. Here, we list some ways you can automate the contract management process.

Central repository for controlled access

Nowhere is the adage “time is money” truer than in a business setting. Case in point, your sales team could be losing money if they can’t quickly pull up relevant contracts while processing renewals for your customers.

To increase efficiency, store your contracts in a central repository that allows you to tag and organize documents. This way, you’ll be able to instantly find contracts whenever you need them. To ensure security, the repository should come with granular permission controls that allow relevant stakeholders to access specific documents only.

Contract drafting

Contract generation tools speed up the drafting process by automatically filling in templates. Automated drafting standardizes the templates. You won’t have to deal with the uncertainty of many different people applying their own style and approach to drafting contracts. Your legal and business teams will be able to better maintain the integrity of your agreements and minimize risks.

But the right document automation platform also lets you customize certain aspects of templates to suit specific needs. For example, it allows you to link to your customer relationship management (CRM) software and other systems so you can easily auto-populate documents with customer details.

Workflow

Document automation tools expedite contract management by moving the process from one step to another with as little friction as possible. Intuitive workflows ensure the contracts end up in the hands of relevant stakeholders at the right time.

An audit trail routes documents to the right people and saves all changes they make with version tracking, increasing visibility and ensuring accountability.

Reminders for deadlines and renewals

Contract management tools help mitigate risk by ensuring no crucial step or task gets overlooked. They send status updates and trigger alerts to remind people of important dates and deadlines related to the negotiation process and completion of the contract.

Approvals with e-signatures

E-signature technology speeds up contract execution by eliminating the need to print, fax, mail, or otherwise use physical copies of the document. It allows stakeholders to sign electronically on various devices, significantly reducing the time and cost it takes to complete a contract.

Intelligent analysis

Document automation tools provide insights that allow stakeholders to review the contract management process and make improvements where necessary. You’ll be able to address the challenges and bank the successes.

Not all contract automation systems provide the functionalities you need. Let’s talk about how you can pick the best solution for your business.

Choosing your solution

With so many options on the market, how do you know which contract lifecycle management solution to sign up with? Consider these key factors to choose the right solution for your business.

• Seamless integration into your existing systems
• Flexibility to adjust to your unique needs
• Intuitive interface and easy-to-learn functionalities
• After-sales services or a support team
• Data security
• Built-in analytics

Start your search by looking inward to get a clear picture of your company’s needs. Then review available providers and what their customers say about their services. Once you narrow down your list, contact the providers and discuss your needs.

Conclusion

Poor contract management comes with costs that you can easily avoid with the right document automation software. Why put up with the risks of a manual approach when you can rely on a contract management system to streamline the workflow and ensure accountability?

Contract management just got less complicated. Simply assess your needs, work with the right provider, and you’ll be well on your way to optimizing your contract lifecycle.