Why your Company Needs an Electronic Contract Management System
Accuracy and efficiency of processes are essential, though at times being overlooked, facet for organizations to augment in order to meet objectives. Sadly, a lot of businesses are utilizing the old method of contract management and records management and fail to recognize the impact this method can have on the overall success and productivity of an organization. One of the most simple and practical means of enhancing your organization’s efficiency is making the big jump to the electronic contract management system.
With the usage of a CLM (contract lifecycle management) software, organizations can streamline workflows by having a centralized location for the storage and navigate to contracts and other important data. Browsing functions and editable access management aids in reducing the number of resources and time spent investing access to documents and browsing for information manually. And if you select an electronic contract management system with unlimited storage, you’ll have the advantage of having all of your organization’s important contracts and documents in one cabinet.
The Setbacks of Using the Old Method
In addition to understanding the importance of an electronic contract management system, it is essential to keep in mind the potential pain points of old methods and processes. If you’re currently using unspecialized, ad hoc solutions such a combination of shared drives, Excel files, emails, and calendar notifications, perhaps some of these setbacks are painfully common to you.
Mismanaged or Lost Files
For organizations who do not have a dedicated central contract repository, it is not unusual for contracts to be disseminated in numerous places, including desktops, email, and occasionally filing cabinets. Without a central storage to manage contracts, the risk of misplacing a contract or misplacing the most recent version is very real and could have disastrous consequences for your organization. Electronic contract management system grants your organization with a secure repository to manage and store contracts, effortlessly removing the headache and repercussions of misplaced, mismanaged or duplicated files.
Counting on employees to managing manually contract deliverables and deadlines with calendar reminders, sticky notes, and the like greatly doubles the risk. When you introduce the likelihood of human error, you double the risk of compliance issues, declined reputation for your organization and possibly even losing contracts altogether. Using an electronic contract management system shall enable you and your employees to receive automatic alerts when contracts are about to expire or when other deadlines are approaching, reducing missed deadlines and other possibly big issues for your organization.