3-4-2016 | by Benjamin Fleshmen
As economic growth and stability have increased throughout the world, so too has the need for every company to manage its contracts better. Some companies manage upwards of tens of thousands of contracts at any given moment. Smaller Mom-and-Pop-Shops handle only a few at a time, never exceeding a dozen.
Whatever the size of the company, contracts are the life-blood of their business. Properly managing their contracts could mean a difference of thousands, or even hundreds of thousands, of dollars, money that gets needlessly wasted because of poor contract management.
This is precisely why companies are turning to online and cloud-based contract management systems. It’s easier to track your contract’s lifecycle, to manage all of its tiny little details, with the benefits that online and cloud-based contract management systems offer.
Contract Lifecycle Management, or CLM, is one of the main ways that a company can control and coordinate its contractual agreements with other companies. Through proper CLM, a company can generate greater revenues, draft more profitable agreements, reduce the amount of time and money invested in renewing and maintaining contracts, and accurately track the terms of the agreement made.
There is, of course, much more to CLM than merely saving money or tracking agreements, though both are difficult enough on their own for a large corporation that’s dealing with tens of thousands of contracts. CLM places more control in the hands of the contractor, the one who is awarding the contracts, and allows them to mitigate greater risks. It grants the contractor an ability to oversee the results of a contract, alter the contract when the time comes, and recapitulate the terms of the agreement for future clientele. This allows for long-term risk assessment and mitigation, something which could save a company a bucket of money. Maybe even two buckets of money.
Managing these things online only makes life simpler. Rather than keeping contracts in clunky filing cabinets at the office, a company can take their contracts with them on the go. Anywhere that can access the internet allows a corporation to access its contracts through a cloud-based system. This makes requesting contracts easy. This makes authoring, negotiating, approving and awarding contracts easy. This makes signing a contract easy, because electronic signatures are available through any online contract management software system, typically for free.
The other perk of managing a contract lifecycle online is the reminders. One of the biggest pains in managing a paper contract is setting deadline reminders, or searching for the precise language of the service agreements. When a company manages its contracts online, some software companies, such as Concord Worldwide, will include email alerts for deadline reminders and editing or comments made on the contract itself.
Managing a contract’s lifecycle on a cloud-based system, especially a simple, easy to use system like Concord’s, is convenient and helpful. When a company chooses to streamline their contract lifecycle by using an online system and storage space, they are choosing to save themselves hundreds of hours and thousands of dollars over the course of the year.
To learn more, fill out the form on this page to chat with one of our contract management specialists, or call us at 844-693-7446.