Top 10 Benefits Of Contract Management Solutions
Contract management is a top concern for today’s businesses. As McKinsey & Company revealed, less-than-satisfactory contract terms and conditions combined with ineffective contract management can erode value in sourcing equal to 9% of annual revenues.
To combat the challenge of contract management, many businesses are turning to contract management professionals. Having a professional with prior experience can help with Contract management solutions, offering different perspectives—and provide businesses with key benefits.
Let’s dive into the top 10 benefits of contract management solutions.
10. Increased Transparency
Storing all contracts in a single, searchable system enables professionals to work from up-to-date documents and easily review the content they need, right when they need it. This level of transparency empowers teams to produce accurate work and leadership to make informed decisions.
9. Fewer Mistakes
Contract management solutions allow authorized team members or partners to easily access and review contracts. Because it’s easier for team members to access up-to-date documents in a clear format, they are more likely to identify and remedy any mistakes. This can save businesses a lot of time—and money—in the long run.
8. Shorter Approval Times
Top contract management solutions provide automation that allows teams to streamline the review workflow and track contract progress. This automation leads to shorter approval times and a better overview of the contract pipeline. This, in turn, allows management to determine what needs to be done and exactly how long teams have to do it.
7. More Accountability
Besides the general transparency that contract management solutions provide, they also often offer features like change tracking. Although contracts are passed to various professionals, change tracking ensures that no erroneous changes are made by team members or partners. It also allows team members to quickly review who made which adjustments.
6. Prevent Revenue Loss
Contract management solutions excel at preventing revenue-related problems and loss. For example, contract expirations often slip by without team members noticing, but with automatic reminders, no renewal will be forgotten again. For amount-dependent contracts, automatic data entry prevents inaccurate invoices. Contracts that discount total prices based on volume commitments can also be automatically calculated, ensuring that no undeserved discounts are given.
5. Easier Audit Preparation
Just the word audit can make professionals shiver. While audits are known for being tedious and time-intensive, contract management solutions can simplify the process. Most platforms offer a centralized portal that empowers teams to access both customer history and all contract history with a single click. With access to comprehensive contract history, teams can maintain a proper paper trail for external audits or internal policy compliance.
4. Honed Security
In today’s cyber-centric world, data exposure is one of many cyber-related business problems. In fact, government organizations and businesses in the U.S. faced 668 million cyberattacks in the first half of 2018 alone. With a contract management solution, businesses can expect increased security, including advanced encryption, multi-factor authentication, and user-friendly administrative features, such as the ability to assign roles and permissions.
3. Improved Interoperability
Today’s businesses love their third-party apps—particularly their CRM systems. Top contract management resources empower businesses to integrate their favorite apps so that data can be shared between them. This empowers legal teams to quickly generate contracts from quotes and easily review customers’ overall contract history and communications.
2. Less Wasted Time
Today’s professionals face a singular problem: they simply don’t have enough time. Many of the benefits of contract management solutions, such as improved transparency, shorter approval times, and increased interoperability, empower employees to save time on repetitive tasks and instead focus on their most complex projects.
1. Maximize Productivity of Contract Management Professionals
The best benefit of a contract management solution would be the value gained through the use of contract management professionals who can help navigate all the other benefits available. Seeking consulting firms who have high-level experience can be a top solution for any company. These industry experts will assess and evaluate the current contract, identify a strategy, then execute the planned process.
Need more information on or consulting about contract management? We’re happy to help.