Benefits of Digital Contract Management System
Last year I overheard a conversation between CEO and operations manager from one of our clients’ organization that went as follows;
COO: Morning Sir!
CEO: Good Morning, what is the status of new ABC security proposal?
COO: We concluded and deployed additional security last month
CEO: I have not seen the contract
COO: They have not signed yet
CEO: How will we get paid?
COO: murmuring… I will ask for the contract.
One of the major sources of revenue leakage in organizations is providing services before the customer signs an agreement. This happens due to a rush from departments trying to ensure they provide the customer’s requirements as soon as possible
The result is you give the customer an upper hand in negotiation because you have already provided the service before putting an agreement in place hence exposing the organization to a risk of loss of revenue.
The risk of revenue leakage and a host of other benefits below can be sorted by easy contract management software.
Contract expiration dates are always known: - Contract renewal is the lowest hanging fruit for an organization, yet often the most missed opportunity. Using alert notifications based on the rules you specify, you can increase renewal awareness.
Improve Document Management: - No more outsourced document storage or messy filing cabinets! Employees can scan paper documents directly into the system so that all documentation relevant to the agreement is available from a single location.
Shorten Approval Times: - Automated contract processes expedite the review process and increase efficiency with to-do lists, automated emails, notifications and activity tracking.
Replace physical documentation: - Contract management software no longer necessitates keeping the paper versions of contracts around. Furthermore, contracts no longer disappear in various office.
Increase Contract Visibility: - A contract is always available to anyone in any location so long as they have internet and the access authority. Nobody needs to sift through stacks of paper anymore.
Improve Audit Preparation: - Your business can maintain accurate contract history for auditing and keep a full audit trail for internal policy compliance.
Ensure Contract Compliance: - Tracking changes and version control when authoring ensures standardization, no critical terms are deleted and the right people have edited the document accordingly.
Improve lead time: - With automated authoring, review and approval phases, the organization increases contract lifecycle completion rate.
Supplier performance is measurable and insightful: - Key activities are scheduled and tracked raising red flags, feedback and instant notification whenever necessary. This data can be used in tracking supplier performance.
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