3 Ways Manual Contract Processes Cost Companies Money
Managing contracts has a large impact on an organization’s overall success, especially when it comes to costs. As nearly every business process becomes digitized, more and more organizations are turning to their last manual process, contract management, as a solution to mitigate risk and increase revenue. While there are numerous benefits from going digital in regard to contracts, two of the greatest advantages are saving money and decreasing risk.
Below are some points on how manual processes drain company resources and how a cloud-based contract lifecycle management platform can solve this issue.
Missed Opportunities
Without a management platform in place that provides insight into contract deadlines, renewals, and all the information necessary to properly manage documents, it’s difficult to track every date and stay on top of timelines. Being unable to manage these things means a company is able to take on fewer contracts, ultimately leading to less revenue and limiting the potential for future growth. If the contracts that an organization already has aren’t able to be managed well, adding more contracts only complicates things.
The inability to expand is not a promising trajectory for a business. Instead, finding a solution that allows contract managers to have a full picture of every document, including deadline alerts and powerful search, eliminates the chaos and helps contracts be well organized.
Failure to Enforce
When there are no clear insights into contracts, enforcing terms is not as simple. Terms that go unfulfilled reduce the benefits of an agreement and make it more expensive in the end if the goods are not delivered as promised. The ability to monitor compliance properly decreases the chances that another party won’t comply, ensuring the agreement is carried out by both sides.
A contract lifecycle management platform should have a comprehensive audit trail that clearly outlines how and when the agreement was made. Pre-approved templates can also assist in this circumstance as the legal team is able to define terms.
Time Lost
From an individual standpoint, it’s not only frustrating to have to search through filing cabinets or emails for documents, but it wastes company time and talent. With this tedious work eliminated, employees are freed up to focus on more strategic work that directly impacts a company’s growth, revenue, and scalability.
A contract management platform consolidates all people, processes, and documents into one place, taking away the need to spend valuable time tracking down these things. With contract templates, approval workflows, and access control for everyone who needs it, a platform should drastically cut down the time spent managing contracts and be able to focus that time on more productive tasks, such as procurement, enforcement, fulfillment, and many other things.
Boost your business with a contract management platform
At this point in the business world, with almost every process automated and streamlined, contracts are a huge money drain for a company if they are still being managed manually. Switching to a contract management platform should produce near-immediate results as workflows become more efficient and financial resources are no longer lost to manual processes. Such a tool can also help mitigate the risks of managing contracts improperly.
