Overseeing contracts can be a convoluted process, particularly for enterprises that have to manage a portfolio of dozens, or even hundreds of agreements simultaneously. In days gone by, companies tended to use spreadsheets, shared drives, filing cabinets, and a ton of emails to track everything. This might still work in the very small sectors; However with the current digital climate, it leads to missed deadlines, version control issues, and a good chance for expensive errors.
A contract management system such as those available at Ironclad can make a real difference in ensuring that contracts are properly managed. These systems are designed to handle every phase of the contract lifecycle, from contract creation and approval to contract renewal and reporting. But how do these systems stack up against old-school methods? Let’s take a look at some basic differences that are really important to businesses today.
Efficiency and Time Savings
One of the most striking contrasts between present-day systems and yesteryear’s methods is efficiency. With manual processes, groups often fritter away the hours looking for the latest edition of a contract, hunting down signatures, or putting together reports. A contract management technology company like Ironclad does many of these steps for you, offering centralized access, built-in workflows, and reminders for important milestones.
Document Accuracy and Risk Reduction
One of the biggest culprits in contract mismanagement is human error. Mistakes are costly, whether they involve an outdated clause, a missed renewal date, or some other kind of error. The traditional methods we still sometimes rely on often involve manual updates and an inconsistent review process, which can be rather tedious and increase the risk of making a mistake.
A contract management system can help mitigate this risk. These systems allow for better version control, use of clause libraries, and themselves typically have more reliable approval workflows. This all helps to maintain consistency and accuracy, with the end result being fewer headaches upon the final review.
Visibility and Control
When you have a physical filing system and a collection of digital folders, it’s hard to see your whole contract landscape clearly. You may not even know what contracts are about to expire, which ones have been signed recently, or what the terms of those contracts are.
Modern contract lifecycle management systems (CLMs) present everything in a real-time dashboard. Contracts are in a searchable database, allowing you to manage obligations, stay compliant, and even spot new opportunities.
Integration and Analytics
Little data insight results from traditional methods. You may know the number of contracts signed this year, but do you know the average time it takes to negotiate a contract or the number of contracts that have been renewed on time?
Contract management software can do more than just manage your team’s contracts and the various stages of those contracts in a centralized way. With built-in analytics and integration capability, it can also serve up some meaningful data.
Why Your Business Needs a Contract Management System
In the current fast-paced business environment, depending on old ways of working is simply not acceptable any longer. A contract management platform is not just about process simplification.
It is also about risk reduction, time saving, and systems supporting long-term sustainable growth. Whether you’re managing five contracts or five hundred, the right system can do wonders for your team.
