Why Does an Organization Need to Invest in Contract Management?

An efficient contract management software improves workflow efficiency, automate manual processes, reduce legal risks, ensure compliance, and can also provide analytics. Interestingly, according to a recent report, inefficient contract management can cost an organization up to 10 percent of its annual sales

Fremont, CA: There had been a misapprehension until recently that contract management software is a requisite only for those organizations that have to manage thousands of complex contracts. However, the perspective is changing swiftly. Today, contact management software is increasingly getting popular and have a significant impact on various aspects of the businesses, from productivity to spend management. An efficient contract management software improves workflow efficiency, automate manual processes, reduce legal risks, ensure compliance, and can also provide analytics. Interestingly, according to a recent report, inefficient contract management can cost an organization up to 10 percent of its annual sales.

A paradigm shift is underway in contact management, and artificial intelligence (AI) and machine learning are at the heart of it. AI has transformed contact management software from a storage and retrieval system into a platform where collaboration and customization are possible for both the parties involved. A contract management solution integrated with metadata can help in analyzing and reviewing the trends and can spot areas that have potential risks. Similarly, automation has already become a pivotal part of contract lifecycle management (CLM). Different parts of CLM, including document creation, contract approval, and reminder setup, can be automated, which significantly improves operational productivity. Software integration can also save a lot of time and effort in contract management.

Contract management software can cover the full lifecycle of contract management capabilities. It would continue to deliver value even after contract execution by providing advanced tools for governance and compliance that mitigates previously hidden risks. It can also address issues such as limited contract visibility, slow contract turnaround time, contract standardization, unwanted expiry and renewal, and so on. Contract management software also makes it easier for various departments of an organization to balance multiple priorities.

Contract management systems support everything from contract creation, negotiation and review processes, digital signatures, execution, and analytics. With an enterprise-wide contract management software, organizations can shield a lot of challenges to protect and optimize their business.