Almost every business handles contracts, which can create reams of paperwork. Enter contract management software: estimated to be a $20 billion industry. This software can help create, track and control contracts, making sure that you and your suppliers meet contractual obligations.
Finding and implementing the right contract management solution requires due diligence, though. As with many software choices these days, the players — and functionality — are changing rapidly. Key benefits of contract management software include:
- Efficiently tracks the contract process
- Usually user friendly
- Assesses profitability of each contract
- Automatically flags expiring contracts
Let software help with contract creationSending a draft of a proposed contract to others within your organization for edits can lead to contract chaos. Software solutions can simplify the integration of your team's comments, suggestions and changes to produce a clear, concise document.
Software can help store your contract recordsA software program or service provides electronic storage of your contracts to minimize the risk of misplacing documents and to provide easy retrieval.
Make sure all parties adhere to the termsContract management software helps you meet all the obligations specified in an agreement, making sure that you hit all milestones, make all necessary payments on time and follow all the proper approval processes. It also keeps you informed of your contract partner's adherence to the terms of the agreement.
Reduce costs and maximize productivityThe right software can help keep your employees focused on their jobs rather than spending time manually tracking compliance with terms and reporting progress. It can also cut costs associated with contract management by reducing data redundancy and duplication of work.
Generate reports on actions takenReporting is essential to effective contract management. It allows you to review summaries of actions taken, key dates and more. Look for software that offers report templates and customizable reports.
Get Web-based contract management supportWeb-based contract management services generally save time and money over traditional software packages. They can be up and running within a few days, and upgrading is included in the cost.
- Don't forget to factor service packages, training and implementation costs into the total cost of software ownership.
- Consider future technology needs when opting for software, since upgrades are costly.
- Look for a program that provides a variety of options for sorting and searching contracts.
- If regulatory compliance is a concern, note that many programs contain this feature.