Contracts protect and control all aspects of day-to-day operations for businesses of all sizes, from mom-and-pop shops to Fortune 500 organizations. Contract management covers everything from customer deliverables to vendor services to office leases. To manage the contract management lifecycle, many firms perceive it as a required cost center and invest in bulky, low-priced solutions or rely on manual processes.
Many business owners are unaware of how costly manual or ineffective contract management systems can be, especially as their company grows and their contract volume climbs. According to the IACCM, managing a single, complex contract can cost a company anything from $14,000 to $48,000. It’s simple to understand how these costs may quickly pile up when considering the number of personnel involved in contract execution and the typical time it takes to move a document through the lifecycle.
The good news is that there are options available to assist you. Investing in appropriate contract management software helps you save not only money but also find new revenue streams. Consider these four ways contract management software can help you save money if your firm wants to optimize its contract lifecycle:
1. Reduced Overhead and Improved Operational Efficiency
By boosting efficiency and automation, contract management software allows teams to spend less time on the contract lifecycle. In the execution of a single contract, how many of your staff are involved? What are your legal, purchasing, financial, sales, and managerial responsibilities? There’s no end to the list.
Your teams will likely waste time hunting for documents and managing numerous versions if your contracts are not accessible and organized. This is not only dangerous, but it also takes time. Consider how long it takes to find a document times by the number of troops participating in the review process multiplied by the number of contracts your company reviews each year. It’s easy to notice how rapidly time passes.
By automating contract storage and organizing, good contract management software eliminates this problem. Teams can rapidly access the documents they need using a centralized, cloud-based contract repository with powerful search and filtering features. ContractSafe’s software, for example, includes OCR technology that allows the user to search supporting documentation and [AI]ssistant, which automates document storage and categorization. As a result, you’ll spend less time looking for documents and sorting them out.
You can also reduce the need for on-site document storage space by digitally storing contracts in a safe, secure place. You won’t be complaining about third-party security mechanisms because a solution like ContractSafe will keep your documents safe and secure.
2. Contract Velocity Increases
Contract management technology allows your extended contract lifecycle more efficient (from creation through execution). As a result of the increased operational efficiency, organizations can complete more contracts.
Having the power to move contracts through your organization helps you onboard more clients (which means more income) or adopt business-critical goods or services that affect the business performance (reduce costs). Instead of waiting in a “slow legal queue,” you can keep your business running smoothly while lowering costs and achieving better results.
By allowing diverse teams to participate in contract management, contract velocity will ultimately increase. Documentation audits can be completed much more quickly if accessible, yet safe access is provided. ContractSafe, for example, can easily link with other third-party lifecycle systems like DocuSign or Salesforce, allowing for speedier contractual terms.
Encourages teams to work together
Contract management software like Ahead of Autorenewals helps organizations save money by preventing the automatic renewal of contracts with unfavorable terms or pricing. For firms that don’t handle contract administration, evergreen provisions can become a costly issue. It’s easy to let things slide between the cracks when manually managing a calendar with hundreds or thousands of renewal dates.
Contract management software makes it simple for teams to stay on top of important contract deadlines. You can ensure that legal, procurement, sales, and finance are alerted well in advance of auto-renewal dates by establishing configurable alerts and reminders. This allows performance to be analyzed and contracts to be terminated or rewritten. Auto-renewing agreements contract management software can save you thousands in the long run by assisting teams in staying ahead of bad situations.
4. Contract management software makes it simple to keep teams informed about important contract deadlines.
You can ensure that legal, procurement, sales, and finance are alerted well in advance of auto-renewal dates by creating customizable alerts and reminders so that performance can be analyzed and contracts can be canceled or renegotiated. Auto-renewing agreements contract management software can save you thousands in the long run by assisting teams in staying ahead of bad events.
Contract management software makes it simple for teams to stay on top of critical contract deadlines. By establishing configurable alerts and reminders, you can ensure that legal, procurement, sales, and finance are all aware well in advance of auto-renewal dates. This allows for performance evaluation and contract cancellation or renegotiation. Auto-renewing contract software can save you hundreds of dollars over time by assisting teams in staying ahead of negative situations.
Contract administration is costly; thus, investing in cost-effective contract management software can save your organization a lot of money in the long term. Try a ContractSafe demo today at ContractSafe.comif you’re in the market for a new contract management software solution. Our platform is affordable, and it comes with all of the features you’ll need to assist your company saves money and energy.
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