If you have worked as a Manager in a corporate firm and have been a part of the sales team then you will surely understand what a contract life cycle management is. Most companies that work with contracts have to manage the contract life cycle either manually or digitally. It is being observed that most of the Fortune 500 companies are slowly turning into digital contract management. This is because of the immense number of benefits it has.
If you want to know more about the benefits of the management of contract life cycle then you can go through the benefits given below:
- The contract is stored in a central contract storage
Previously important contracts used to be stored in the file cabinets that would be there at the back of the office. But with contract management system you actually have the option of storing contracts in the Cloud. You have the option of accessing this sort of contract anytime you want. You can also access it from different locations. Thus monitoring and locating contracts becomes much easier.
- There are hardly any chances of losing a contract
According to latest data it is said that almost 10% of contracts are lost due to certain errors caused by human beings. The Fortune 1000 companies deal with 20000 to 40000 contracts at a given point of time. So manually handling these contracts would mean that as many as 2000 to 4000 contracts would go missing in one particular year. Thus the companies have to bear a lot of penalties and also have to lose a number of business opportunities. But properly managing the contract life cycle would make it easier for you to find the contracts.
- Proper contract management also uses electronic signatures that make the entire execution process quite easy
With the help of the best contract management systems you will be able to sign contracts with the vendors, clients and colleagues quite fast. Efficient contract management system definitely helps in an efficient workflow approval and in quicker deals.
- There is also a proper electronic collaboration
When a contract is being drafted often it becomes very difficult to get an input from the entire team. Getting a proper input from third parties also become difficult. Before this the process mainly relied on Word’s track changes and life e-mail. These changes often made it difficult for the organizations to keep a track of the different versions of the document. An efficient contract management system helps in a proper coordination between the different departments of an organization.
- You are able to control the version
When a contract is being prepared you have to email it, fax it as well as print it. So this means that there will be different versions of the contract floating all across the office. It is very difficult to find out if everyone is using the same version. But if the contract is to be edited online then only the most recent version has to be edited. The other versions of the contract remain in the audit trail. So everyone is able to see the changes only in the most recent version.
There are a number of benefits of a good contract management. So it is always advisable to manage the contracts electronically. Electronically managed contracts are most secured.
Published by Edward Martin