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Feb 11, 2016 9:36:12 AM Michael Myers Contract Management

Top 5 Benefits of an Automated Contract Management Solution

Ineffective contract management costs the average company 9.2% of annual revenue – Source: IACCM

Automated Contract Management Solution

Contracts have an enormous impact on an organization’s profitability because they affect revenue and expenses. There are a wide range of tasks associated with each stage of the contract lifecycle. Automating the contract management process is critical to organizations focused on increasing efficiency and reducing risk.

Benefits of using an automated contract management process:

  • Central Repository and Control of Enterprise Wide Assets
  • Automated Workflows for Contract Review and Task Management
  • Digital Signatures
  • Reduce Risk with Automated Alerts
  • Records Management

Organizations who utilize contract management automation improve contract renewal rates by 25%, increase revenue by 1%-2%, and cut contract cycle time in half

  • Central Repository and Control of Enterprise Wide Assets
  • Capture, process and file information from a wide variety of media (paper, scanner, e-forms, electronic documents, etc.) and applications. Having one document management repository makes it easy to search and quickly find documents, including emails and Microsoft Office documents. No need to search multiple places or email threads to find important assets. With Intelligent search using optical character recognition (OCR), you can instantly locate contracts and other stored content using multiple search options.

  • Automated Workflows for Contract Review and Task Management
  • Automating your business process workflows helps streamline the contract management process by quickly moving contracts from one step to the next to keep the contract moving forward to completion. One person or in parallel, once the person approves the next person in the workflow is notified, ensuring the contract moves from one stage in the process to the next, quickly and seamlessly. Notifications are sent to authorized people using automated emails to alert them to new tasks. Notifications can also be used to alert authorized managers that the contract is ready for signing.

  • Digital Signatures
  • Using digital signatures allows for quick approval process that shortens cycle times and reduces costs. You wouldn’t want to disrupt the automated contract management process by reinserting paper into an electronic process.

  • Reduce Risk with Automated Alerts
  • A reliable contract management system can mitigate risk by capturing all the information throughout the request, authoring, and approval process stages and offer alerts related to key events, expiration dates and renewal dates to keep you in compliance.

  • Records Management
  • Enables organizations to configure views base on permissions and security. Users will only be able to see their tasks in an organized folder structure. Version control is used to track who made changes, what those changes were, when they were made, and where all of the versions are located.

Automating the creation, review and approval of contracts drives consistency throughout the process. Consistency, in turn, enables transparency and accountability, both of which are essential in the ever-increasing regulatory environment.

    According to Forrester and Aberdeen contract management automation can:

  • 55% Improvement in compliance
  • 50% Reduction in contract cycle times
  • 25% Improvement in contract renewal rates
  • 1-2% Improvement in revenue
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