Long gone are the days when deals used to get finalized over a phone approval or firm handshakes. Today, the procurement process is initiated only when the contract is awarded. The problem with traditional paperwork is with the amount of time it takes to prepare and execute, and then there’s always this fear of disputes arising out of the contract, which could hamper the supplier relationship. Constant pleas from organizations for a better contract management solution has given rise to the contract management software, which can replace traditional paperwork and increase procurement efficiency. Here are some of the reasons signaling why your organization needs a contract management software.
Reduce Contract Cycle Times
Contract management software uses templates with pre-approved clauses and pre-defined approval work-flow, facilitating easy editing of contracts as per stakeholder inputs without compromising on accuracy. The software also provides full visibility into contracting processes and orchestrating the contracting process across its life cycle; thus, avoiding the chance of contract mismanagement.
Decrease Overall Risk Quotient
Organizations are constantly battling with multiple factors to reduce their overall risks. But many a time, risks arise out of poor contract management practices. Companies might fail to comply with the contract clause, miss a contract opportunity for discounts, spot errors in the contract, or fail to enforce negotiated supplier terms – all of which are financial, time, or compliance risks. A good contract management software can mitigate such risks by sending timely notifications to track contract expiry, allowing effective collaboration between stakeholders to reduce errors, and identifying profitable opportunities by providing dynamic reporting and configurable dashboards.
For many organizations, maverick spends are managed outside the jurisdiction of contracts. The contract management software increases savings by bringing such maverick spends under contracts and increasing compliance. It also helps save costs by identifying revenue opportunities, decreasing administrative and operational costs, and improving client satisfaction.
For more information on contract management and the best contract management software for your organization: