Why do we need contract management solutions?
All companies have to manage a certain volume of contracts. When this volume becomes sizeable (in other words, roughly 40 or more contracts per month), manual contract management becomes problematic: it can end up wasting a lot of time – and even money!
That is why a growing number of companies are opting to automate their contract management processes by turning to contract management software. So what benefits can these tools offer, and what can we expect from them?
#1 – Considerable time savings
Managing large volumes of contracts manually is highly time-consuming. In fact, this is probably the number one reason why companies seek to automate this task. Unsurprising, given that 62% of legal departments believe that their workload is set to increase over the next few years, according to data from consultancy firm Day One.
The reason contract management is so time-consuming is that a contract’s lifecycle does not end with its signature: companies also need to account for monitoring its performance, keeping an eye on deadlines, any future amendments, and tacit renewals.
When all these elements are managed manually, the risk of error is much higher, and any mistakes can prove costly for the company. As such, employees devote hours upon hours carefully reading, classifying and checking the information in each contract.
Not to mention all the work poured into the document before it is even signed, which often involves long, tedious exchanges in an effort to have it approved.
Thanks to contract management technologies, these tasks are now by and large automatable.
Indeed, some contract management software has built-in artificial intelligence which scans the text of contracts to pick out the key clauses and information (counterparties, dates, etc.).
As such, they save time at the drafting and approval stages thanks to highly-configurable contract templates and approval workflows. What is more, according to the same study, contract management makes negotiations 50% faster.
#2 – Centralizing contracts and simplifying everyday tasks
Contracts are legal documents that pass through the hands of multiple parties: legal experts, of course, but also sales, purchasing, financial and even human resources departments. Not to mention all the parties outside the company (clients, suppliers, etc.)!
More often than not, this results in long, drawn-out email exchanges, which waste time and create oversights and errors in the confusion: something few companies can afford to deal with.
With contract management software, on the other hand, all the company’s contracts are centralized and accessible through a tool known as a contract library, which keeps them all together in a single location. This greatly simplifies exchanges and discussions, especially now that remote working is becoming the norm.
The tool also helps streamline day-to-day contract-related tasks, namely:
- searching for information, made considerably easier thanks to a smart search engine;
- approval processes, automated by way of a customizable workflow;
- contract drafting, thanks to a clause library and templates;
- deadline management, made simple with a system of reminders for key dates.
Saving time translates into a huge boost in efficiency and productivity, and automated contract management can very quickly help companies sign more contracts!
#3 – Bolstering contract security and compliance
Storing all your contracts in a single, secure online contract library is an excellent option for ensuring the security of your documents. No more accidental losses or information leaks!
One might think of losing a contract as a rare event; however, the study shows that companies do not know where 10% of their contracts are. Centralizing all your contracts eliminates this uncertainty entirely, which increases the control you have over your data.
Smart detection of the key clauses and data in each contract also makes drafting and monitoring them more reliable. The risk of error and non-compliance is greatly reduced — potentially even erased — as compared with manual management.
The DiliTrust Contracts module, a comprehensive solution that can simplify all aspects of contract management
The Contracts module by DiliTrust is a SaaS contract management solution which can be easily integrated into all your existing tools (word processors, CRM platforms, electronic signature tools, etc.). This software stores all your contracts in a single database, making collaboration and remote working simpler than ever before.
It has a whole host of features designed to make managing contracts throughout their lifecycle a great deal less demanding:
- clause library and contract templates
- electronic signature
- approval workflows
- change log for all contracts
- automatic deadline reminder system
- statistical dashboards
- fully secure storage.
From creation to signature, you need never again lose track of the changes made to your contract. The approval process is secure thanks to a configurable workflow, while the electronic signature feature saves you a considerable amount of time. Automatic reminders, meanwhile, help you to prevent losses due to tacit renewals and alert you to any unfair clauses identified in the contract.
All of these features greatly simplify and reduce the day-to-day workload of legal experts, sales representatives, and all other employees who have occasion to handle contracts. The bottom line: there are huge savings to be made in terms of time, energy and money!
Want to find out more about our CLM software? Reach out to one of our experts!