How to Effectively Manage Contracts in a Pandemic
Contract management has become an even more difficult process for businesses in light of the coronavirus pandemic; with no other solution, businesses everywhere are wisely making use of contract management workflow automation to help manage contracts digitally.
In this article, we will discuss how your business can effectively manage contracts during a pandemic by using contract management automation.
Why Do We Need Contract Management Workflow Automation Today?
Contracts are the heart and soul of all commerce and business operations; without contracts, businesses would simply be unable to continue as agreements, sales, and legal obligations would become impossible to manage.
The entire business landscape has changed in the last decade or two, mainly due to the emergence of technological advancement - we no longer conduct business in the same way we did 20 years ago, and a major theme of this advancement has been the introduction of automation.
Businesses everywhere are introducing automation into many of their business processes - a major area for automation is contract management.
The volume and complexity of contracts are increasing day by day and the only way to manage them and stay afloat is by using technology; automated contract management software allows for streamlined creation, negotiation, and execution of any and all legal contracts and documents within a business.
Manual contracts are slowly processed, difficult to manage, and prone to human-caused errors - contract management workflow automation helps fix these issues and streamlines the entire contract lifecycle, from creation to renewal.
Now, more than ever, we need digital solutions for processes and business operations that took place in person; the COVID-19 pandemic has rendered the business landscape indistinguishable from what it was a year ago, and when it comes to contract management the best way to overcome these unique circumstances is by implementing automated contract management systems.
Automation is changing the way organizations handle contracts, and the benefits of this far outweigh any negatives, if any at all. A lot of useful information can be found on this website.
First, let’s take a look at the benefits of contract management automation.
4 Benefits of Contract Management Automation
Some of the main benefits of implementing contract management workflow automation into your business include:
The main benefit of an automated contract management system is that the entire contract lifecycle is streamlined; from start to finish, many of the manual tasks of the traditional contract process are automated.
Contract creation (templates are used to generate ready-to-go contracts in a short amount of time)
Negotiation (users are automatically alerted when an action is required of them; they can make edits and comments within the software)
Approval (contracts can be sent to the ‘higher-ups’ who can then approve contracts without having to meet in person or leave their desk)
Signing (contracts can be signed electronically, from any location via the internet)
Renewal (automated alerts and notifications notify users when contracts are nearing expiry)
As you can expect, using contract management automation software cuts down costs in a number of ways.
First, contract management automation streamlines the entire contract process; this means less labor hours and more time spent focusing on important business operations that directly result in sales and growth.
Second, an automated contract management system means less human-caused errors; the software prevents the usual mistakes that occur with manual contract processes.
Also, contract management automation helps with compliance.
Yes, the automation of contract management helps users and involved parties keep up-to-date with various legal obligations; the software essentially offers users the benefit of tracking the requirements of different contracts in an easy-to-manage way.
Manual contracts and scattered legal documents make it difficult for users to keep track of legal obligations - contract management automation software fixes this entirely.
By eliminating the need for filing cabinets or unprotected computer folders, automated contract management software improves the security of your business's important legal documents.
With the automation of contract management, all contracts are stored within a centralized repository; not only does this make it easier to view and manage contracts, but it also helps keep the database of sensitive information protected.
Contracts can be stored via cloud and permissions can be customized and monitored to prevent certain legal information from getting in the wrong hands.
How To Implement Contract Management Automation Software
The automation of contract management is a difficult process to implement; what is the best way to approach contract management workflow automation and how do we introduce it into our business?
Introducing new software or changing a system is tricky, and the actual process will vary from business to business.
Nevertheless, there are rules that apply for any organization looking to implement automated contract management software:
Create a plan (know what areas of the business need automation most and create a plan to slowly implement it - create a schedule and stick to it)
Understand your process (your business knows your contract management process more than anyone else - this means you need to implement contract management automation in a way that fits your businesses processes specifically)
Communicate (introducing new systems or software into a business is a process in and of itself - be sure to communicate with departments and employees to maintain a realistic view of how the implementation is going)
Educate (as with any new software or system, it is crucial to train all relevant departments and staff on how-to-use the automated system)
Track results (consistently track results via data and reports to ensure the automated contract management system is working)
Why Automated Contract Management Software Is Crucial For Businesses Today
We cannot control a virus and the effect it has on commerce and people, but what we can control is how we choose to adapt to the changing times.
As far as contract management goes, we have the power to combat unforeseen circumstances by implementing contract management workflow automation; this is the best solution to modern contract management during the pandemic, so if you have yet to introduce this to your business, now is the time.