Contract management tools makes it easy to manage contracts. Organizations that don’t employ such solutions suffer unnecessary loss.
Excel spreadsheets are the thing of the past; they lack the ability to integrate with other advanced systems like ERP or CRM, lack alerting and lack organizational access. An enterprise contract management comes with no such limitations and provides several other benefits to organizations.
In the corporate landscape, contract management is essential to manage business relationships, Contract Lifecycle Management (CLM) and electronic signature. That’s the reason most companies now employ enterprise contract management system to get the most out of their agreements that take so much time and effort to negotiate.
In this post, we’ll take a look at the top 67 benefits of an enterprise contract management system.
1. Commitment to Completion
The systematic approach of enterprise contract management system with authorization, review and approval steps helps to increase the completion rate of contracts.
2. Electronic Signatures
Enterprise contract management systems come with the ability to capture e-signatures. This means that no time will be wasted on getting sign-offs, as agreements can be done electronically with no need for papers.
3. Document Management
Messy cabinets end with enterprise contract management. All documents can be stored in the system directly and made available on demand.
4. Better Track of Contracts
Employees can keep better track of the contracts with analytics, reports and actively logs of an enterprise contract management system.
5. Alerts for Renewal Date
Enterprise contract management system can raise alert notifications when the contract is about to expire. This way you’ll never miss an important date of contract renewal.
6. Audit Preparation
With a contract management system, you can view the history of contracts and prepare them for audit to ensure compliance.
7. Increase Visibility
Storing all the contract files on a single centralized platform increases the visibility. This allows more extensive reporting and ensures that your employees are working with the latest contract templates and clauses.
8. Approval Times
The flexible modules that come with enterprise contract management systems completely automate the contract process to increase efficiency and decrease approval times.
9. Risk Reduction
Contract management system allows identification of contracts that require immediate attention. This reduces the risk of losing a contract agreement due to negligence.
10. Financial Optimization
An enterprise contract management system helps in reducing legal charges as every contract can be signed electronically.
11. Improved Forecasting
All the analytics and reporting that an enterprise contract management system offers improve forecasting.
12. Operational Efficiency
An enterprise contract management system eliminates manual processes by centralizing the document storage. This way staff gets more control and operational efficiency is improved.
13. Collaborative Negotiation
A contract management system offers better collaboration and negotiation as everything from contract negation and approval can be done electronically.
14. Workflow Management
An enterprise contract management system provides contract generation, amendment and renewal capabilities which allow better workflow management.
15. Cost Control
As the contract management system improves operational efficiency by automating the contract process, operating expenses are reduced.
An enterprise contract management system can be integrated with other software like Microsoft Office suits or SAP to allow more efficient and collaborative working.
Employees don’t have to be present in the office premises to review contracts as an enterprise contract management system can be accessed online from anywhere, anytime.
18. Reliable Search
An enterprise contract management system offers reliable search options. Staff can search the key contracts with custom search without needing to go through each contract individually.
Contract security can be defined based on access control so that only authorized users can review and manage the contracts.
20. Business Insights
The tracking and reporting features of an enterprise contract management system enable automated reports and provide actionable business intelligence to improve processes and ensure that best contract management practices are adopted.
21. Tracking Performance
Event management and monitoring features of an enterprise contract management system improve performance tracking.
22. Revision History
As an enterprise contract management can be integrated with Microsoft Word, it allows comparing and editing documents. Changes are tracked to ensure that no important terms are deleted.
23. Fewer Errors
An enterprise contract management system reduces the errors that are commonly encountered with manual contract management.
24. Faster Payments
With a contract management system, agreements can be signed electronically without delays that are mostly experienced in paper-based contracts. No delay means faster contract signing and thus, faster payments.
25. Enhance Contract Review
Contract management system not only automates contract management workflow, by it also streamlines the process by eliminating time consuming steps altogether.
26. Greater Integrity
Contract management systems come with multi-factor authentication which means that data is safer from hacks and third party intrusion.
The details of all the contracts are available to the contract manager and they can be easily tracked.
All manual changes made to the contract document can be tracked to ensure that the data and terms are accurate.
29. Complete Control
An enterprise contract management system provides complete control over the contract. Standard libraries can be accessed from anywhere by authorized personnel, logs keep track of data entry and compliance is improved with deadline and payment notifications.
30. Moving at Digital Speed
With an enterprise contract management, contract agreements can move at digital speed as time consuming activities are eliminated.
31. Measuring Supplier Performance
Supplier performance can be determined through an enterprise contract management system as contract summary provides all the documents and agreements signed with suppliers.
32. Recurring Invoices
By integrating contract management system with automated invoice, invoices of purchases can be matched automatically with contractual agreements.
33. Standardize Contracting Process
Contract quality can be increased through contract management system by ensuring that all the contract creators adhere to the standard contracting policies.
34. Approval Rules
With custom approval rules, it can be ensured that each contract gets reviewed by staff after a particular time period.
35. Contractual Commitment
An enterprise contract management system provides vendor compliance enabling organization to gauge the performance of vendors and take necessary actions if required.
36. Reduced Cycle Time
Standardizing the contract process with an enterprise contract management helps to reduce the cycle time of completing contract agreements.
37. No Loss Contracts
With centralized storage of an enterprise contract management system, there’s no possibility of losing a contract.
38. Contract Compliance
From the request phase to approval, each contract on an enterprise contract management system is held as per the compliance standards.
39. Meeting Budgetary Limits
Contract management systems enable monitoring the status of all contracts with real-time dashboards so contract managers can plan future contracts according to the allocated budget.
40. Increase Awareness
As the status of all the contracts is visible on the contact management system, staff stays aware of the contracts that need attention and feedback.
41. Better Tracking
Contracts can be better tracked with an enterprise contract management system. By tracking contracts on a regular basis, organizations can avoid penalties that come from failure of meeting the contractual agreements.
42. Contract Stages
A contract management system shows the exact stage contract is in. For example, if the contract is approved it displays approval status and if it is discontinued it shows discontinued status. This way contract manager can better know the condition of the contracts.
43. Reducing Workload
An enterprise contract management helps to reduce the workload of employees as all the contracts can be easily accessed and managed.
44. Contract Classification
With an enterprise contract management system, contracts can be categorized according to their type. This makes them more manageable.
45. Everyone Stay on the Same Page
An enterprise contract management system keeps everyone on the same page. As different people add to the contract, all the changes are recorded and are available to review from the centralized storage.
46. Competitive Advantage
An enterprise contact management system provides competitive advantage to firms as they’re able to utilize their resources better.
47. Business Projections
With the status of all the contracts in view, a manager can make better projections for future.
48. Better Relationships
An enterprise contract management system helps to improve relationships with clients as deadlines are never missed and contract obligations are fulfilled.
The many reporting options of an enterprise contract management system allow organizations to determine the performance of their employees and also the overall status of the contracts.
50. Real-time information
All the information is available on real-time and you don’t have to worry about updating the system. As the contract information is entered into the contract management system, it becomes available immediately.
51. Preconfigured Solution
With an enterprise contract management solution, you won’t have to worry about setting up the system before you can use it. Everything is pre-configured and contract management can begin as soon as you get the system.
52. Increased Analytics
Organizations can better analyze spending with reporting and analytics features of an enterprise contract management system.
53. Prevent Unplanned Renewals
With an enterprise contract management system, contracts can be made to archive automatically upon expiration and alert notifications point out expiring contracts. This way you can ensure that contracts are not renewed automatically.
54. Smarter Spending
With sorting and searching features, all the necessary agreements and documents can be easily found. With a simple catalog of all the important contracts, businesses can spend smartly knowing their requirements.
55. Ease of Use
Contract management systems are easy to use which means you don’t have to spend time and money on training of employees.
As contract management systems reduce the workload, employees willingly accept their introduction in an organization.
57. Protection of Sensitive Data
Contract management system keeps the sensitive contracts in a secured storage that can only be accessed by authorized staff.
58. Quick Response
The status of all the contracts is visible in real-time which allow managers to quickly respond to new requests.
59. Operating on Terms
An enterprise contract management system allows contracts to be made according to the latest terms and conditions as the templates are readily available through the centralized storage system.
60. Linked Contracts
In addition to all the main contracts, an enterprise contract management system also provides an overview of the side agreements like confidentiality agreements to ensure that no important detail is missed.
61. Contract History
With an enterprise contract management system, the history of all the agreements made during the contract lifecycle can be reviewed from additional files that are attached with the contract.
An enterprise contract management system can be integrated with Outlook to remind you of important upcoming tasks via email. This way you can always stay aware and up-to-date to respond on time.
63. Familiar Environment
No migration is required with an enterprise contract management as it can integrate into the existing organization infrastructure and employees can continue working in a known environment.
64. Processing Information
Information can be processed efficiently by integrating different tools with an enterprise contract management system.
65. Easy Configuration
An enterprise management system can be easily configured according to your business departments, users, roles and permission schemes.
66. Self Service Import
An enterprise contract management system provides a feature of self service import through which employees can import the already existing contracts into the system.
67. Analyze Progress
The progress of the contracts can be analyzed regularly with real-time information on an enterprise contract management system.
That’s all, whew! We know you’re thinking these are a lot of benefits for something that is so simple in use. This is true and that is exactly why today so many companies have set aside the manual contract management practices and are adopting the enterprise contract management system.