Globalization is revolutionizing the business world, which we see today at a rapid rate, resulting in firms getting an infinite number of clients worldwide. However, the volume of contracts which the organizations have to encounter has also increased massively. As a result, problems like losing a crucial vendor agreement or the inability to handle a high-value contract are becoming common.
But, an emerging trend is being observed since the last couple of years to tackle the issue of managing increasing contract volume in an effective manner. Organizations have started to take the assistance of firms that provide contract management solutions in order to manage their contracts efficiently. Through this, businesses are able to regain hold over a mismanaged portfolio or conduct a special contracting event that would have exploited the business’s resources, revenue, or goodwill if not done correctly.
With the change in market conditions, it has become necessary to embrace the latest technologies and practices in order to achieve increased productivity and efficiency. Online contract management software is also one of the new practices which have taken companies by storm.
Here we have discussed seven reasons why businesses are moving to online contract management services. Let’s have a look at them-
Accessibility of the contracts
As per the International Association for Contract & Commercial Management (now World Commerce & Contracting), Four- fifth of the companies are encountering the issue of finding their contracts. The major reason being when contracts are kept across multiple devices or places, it can be challenging to retrieve them when the need arises. Therefore, keeping your documents in a safe, online system ensures that they are always easily accessible. This thing is extremely essential, especially for situations that necessitate remote access to the agreements. Like if by any chance, circumstances are preventing you from gaining access to your office, you still should be able to get a hand of your contract to keep your business moving.
Need to have precise knowledge of the agreements
It is expected from corporate counsels and others involved in contract management that they have a complete understanding and hold of the agreements. This means being well versed with the content of the contract and the ability to correctly answer any query regarding it. But managing your contracts manually can invite the risk of getting dazed by questions you can’t answer confidently. This can lower your authenticity in the eyes of the client.
But with an online contract management system, you can easily look for any specific detail you want to use as a reference, like the value of an agreement, any particular condition, or resolution procedure of a conflict. This comes in handy when you have to find any specific detail or reference any archived contract that will provide valuable data for forming a new contract later on.
Freedom to focus on relevant tasks
Managing your contracts manually is a time-consuming process. So, it becomes relevant to streamline and automate certain elements of the contract management process that can increase the efficiency level of your team. However, failing to this can compel you to utilize your skilled employees on mere basic chores.
Suppose you are managing even a decent-sized portfolio while relying on a manual process. In that case, even you know how tedious it is to maintain a hold on all the dates, conditions, and compulsions to make sure your agreements are solid. Moreover, the manual process makes finding relevant information excessively long and challenging as the number of contracts in your portfolio increases.
But with access to an online contract management system, you can manage your agreements via automation. This significantly simplifies the tasks allowing your team to focus on core business activities instead of consuming time on managing contracts.
Ability to monitor deadlines effectively
Counsels should continuously monitor each contract to ensure it is providing utility and deserves to be renewed when the right time arrives. Reason being that when you don’t have information about the automatic renewal of any contract, you may miss the chance to decide that whether you want to terminate it if it makes sense or you want to keep it going.
For example, the agreement was longer fulfilling its assigned purpose, or you wanted to re-discuss specific terms or make amendments to comply with industry changes. In addition, keeping up with deadlines using notes or manual calendars leaves you open to encounter human error and oversight. This phenomenon of companies missing important contract deadlines is also a catalyst to embracing online contract management solutions. By storing agreements using an online contract management system, you can examine all the relevant contract details in one place. In addition, you can make schedules to automatically receive helpful insights in your email inbox, which will tell you about the status of a contract that is about to expire within 30 days. This will help you carefully monitor the contracts and decide what you want to do with them.
Implement growth and expand the firm
There is no issue in storing contracts on multiple systems and tracking details via spreadsheets. However, this procedure is not scalable. As per the World Commerce & Contracting, around 20,000-40,000 contracts are maintained at a time by the Fortune 1000 companies. Therefore, no matter how many contracts your organization handles, you can picture how challenging it is to maintain control when your agreement portfolio expands.
Thus to achieve swift growth and expansion, any growing firm, irrespective of its size, should research the popular contract management processes and other resources available to ensure smooth working and attain the desired level.
Shifting to an online contract management system will boost your efforts of managing the armada of new contracts as your firm grows. And transitioning dynamically while you still have maintained control of the present agreements will be tremendously easy than overcoming the difficulty of taking care of sudden increments in new contracts and managing deadlines of the old ones simultaneously.
Increase in customer accessibility
You can provide clients with the documents faster when your store them on an online contract management system. In addition, clients can sign documents irrespective of their location or device as they don’t have to wait for the hard copies to arrive. Also, these software provide an auto-fill feature, so your clients only have to initial or sign a document once. After that, it will automatically fill out the remaining parts of the document using the signature provided in the first instance. And there are agreements that don’t even require e-signature. The client has to only select on “I agree with the terms and conditions” options, and the rest will be taken care of.
This time-friendly feature enables clients to sign an electronic agreement via any electronic means, especially in deadline situations where one cannot afford to wait for a hardcopy to arrive.
Striving even during the pandemic
As the world battles the turmoil of the covid-19 global pandemic, online contract management has provided a lot of relief to businesses. With remote working to prevail throughout 2021, having access to an online contract management system has become necessary.
The reason being that most of the employees are working remotely due to lockdowns. Therefore the availability of an online platform ensures that employees have access to everything that they require without the compulsion of leaving their home and risking their safety.
Ability to customize templates
Having a high volume of contracts certainly implies that you would be having a variety of clients or partners. And thus, drafting agreements, again and again, can become tiresome.
Online contract management software allows developing templates and e-signatures that can be customized later on to meet a specific client requirement. You can easily select a template and only make alterations or change e-signatures that meet the client’s demand. The templates will remain saved for future usage. This can you save a lot of time in re-drafting agreements.
Many companies are considering shifting to an online contract management platform to mitigate the risks of the future. The last year has been a caution beam of a ray to many businesses as it throws light on their current unfit management methods, especially during the ongoing Covid-19 crisis. Thus, it makes sense to move forward on implying online contract solutions to co-op with changing times and the ongoing digitalization. With this, you will not only ensure that your business is in compliance with contract norms but also enhance your relationships with other parties such as suppliers or vendors.