Effective contract management is essential for businesses of all sizes and industries. Contracts govern relationships with customers, suppliers, partners, and other stakeholders, and they can have significant legal and financial implications if not managed correctly. Contract management software can streamline the entire contract lifecycle, from creation to renewal, and help businesses avoid common pitfalls such as missed deadlines, compliance issues, and disputes. In this essay, we will explore eight key features of effective contract management software and their benefits.
A centralised contract repository is a secure and searchable database where all contracts are stored and organised. This feature allows businesses to easily locate and access all contracts, reducing the risk of duplicates, missed renewals, and other issues. A centralised contract repository provides a single source of truth for contract information, making it easier to manage and share with stakeholders.
Where it matters: A large healthcare provider with multiple locations was struggling to keep track of their contracts, which were scattered across various systems and folders. They implemented contract management software with a centralised contract repository, allowing them to easily locate and access all contracts from one location. They reduced the risk of missing renewal deadlines and saved time by no longer having to search for contracts manually.
Automated contract creation allows businesses to generate contracts quickly and accurately using predefined templates and clauses. This feature saves time and reduces the risk of errors and inconsistencies. Automated contract creation also promotes standardisation and ensures that all contracts follow the same format and language, making them easier to review and compare.
How it helps: A technology company had a manual contract creation process that was time-consuming and prone to errors. They implemented contract management software with automated contract creation, which saved significant time and reduced the risk of errors in contract language and formatting. They were also able to standardise their contract templates and clauses, making it easier to maintain consistency and ensure compliance.
One of the most important contract management software features is workflow management which streamlines contract approval and execution processes by automating tasks and notifications. This feature ensures that the right people are involved in the contract process and that contracts are approved and executed on time. Workflow management also helps businesses ensure compliance with policies and regulations by enforcing approval and signing authority requirements.
Get organised: A construction company’s contract approval process was disorganised and caused delays. They implemented contract management software with workflow management, which provided them with a structured and automated process for contract approval and execution. This increased their efficiency and allowed them to ensure compliance with their approval and signing authority requirements.
Contract analytics and reporting is and essential contract management feature and provides businesses with insights into contract performance and risks. This feature allows businesses to track contract metrics such as renewal rates, contract value, and compliance issues. Contract analytics and reporting also enable data-driven decision making and forecasting by providing businesses with accurate and up-to-date contract information.
Foster better relationships: A retail company was struggling to monitor their supplier contracts and track compliance with their terms. They implemented contract management software with contract analytics and reporting, which provided them with insights into supplier performance and risks. They were able to improve their supplier relationships and negotiate better terms based on accurate and up-to-date contract data.
Contract collaboration allows businesses to involve stakeholders and partners in the contract process. This feature promotes communication and transparency and ensures that all parties are aligned on contract terms and conditions. Contract collaboration also enables businesses to share documents and revisions securely and track changes and comments.
Less waste, less time, less costs: A legal firm’s contract collaboration process involved multiple emails and manual document sharing, which caused confusion and inconsistencies. They implemented contract management software with contract collaboration, which provided them with a secure and centralised platform for communication and document sharing. They were able to improve their collaboration with clients and stakeholders, reducing the need for face-to-face meetings and improving their efficiency.
Contract renewals and terminations enable businesses to track and manage contract expiration dates and termination clauses. This feature ensures that businesses do not miss renewal deadlines or incur penalties for early termination. Contract renewals and terminations also help businesses avoid potential legal and financial risks by ensuring that contracts are appropriately terminated or renewed based on business requirements.
Never miss a deadline: A manufacturing company was at risk of incurring penalties for missing renewal deadlines and overlooking termination clauses in their supplier contracts. They implemented contract management software with contract renewals and terminations, which provided them with automated alerts and reminders for upcoming renewals and termination dates. This allowed them to mitigate their risks and avoid unnecessary legal and financial liabilities.
Risk management and compliance is a feature that helps businesses identify and mitigate contract-related risks. This feature allows businesses to track compliance with regulatory requirements and monitor risks such as late payments, missed deadlines, and contract disputes. Risk management and compliance also help businesses stay on top of contract-related obligations and avoid potential legal and financial liabilities.
Compliance without the headaches: A financial services company was facing regulatory compliance issues related to their customer contracts. They implemented contract management software with risk management and compliance, which allowed them to track their compliance with regulatory requirements and monitor contract-related risks such as late payments and disputes. They were able to ensure that their contracts were in line with regulatory standards, avoiding legal and financial penalties.
Contract management software is a critical tool for businesses of all sizes and industries. It provides businesses with features such as centralised contract repositories, automated contract creation, workflow management, contract analytics and reporting, contract collaboration, contract renewals and terminations, and risk management and compliance. Investing in a robust contract management software solution can help businesses streamline their contract processes, reduce the risk of errors and disputes, and improve compliance with policies and regulations. By harnessing the power of technology, businesses can unlock the full potential of their contracts and drive growth and success.
WebCM offers advanced automation features that can enhance efficiency and cost savings by streamlining your contract management processes. By inviting your team to use the platform, you can significantly decrease the risk of errors or delays, freeing up time and resources to focus on more crucial tasks.
In summary, WebCM’s contract management software features are beneficial for businesses of all sizes seeking to streamline their operations and improve their bottom line. We have been creating contract management software for more than a decade, and prior to that, we taught comprehensive contract management classes to businesspeople like you! If you want to learn more about how our system can transform your processes, or request a free trial or demo, please contact us or call us at 1300 699 322.