For most for-profit and non-profit organizations, the search for reliable online contract management software is sparked by rapid organizational growth that often creates high contract volume. Other reasons most companies seek contract tracking or monitoring solutions include the leadership’s desire to gain complete control of a seemingly mismanaged portfolio or a particular contract-related event that may have caused reputational harm or cost business money and time.
Whether there is a high-value contract that automatically renewed without the knowledge of the responsible individual or an important vendor contract got lost, there are many examples of issues that can be avoided if you get an online contract tracking and management solution. Here are some of the reasons your organization must get a reliable contract tracking system.
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Make it easy to access contracts.
A recent study revealed that 85 percent of organizations default to manual contract monitoring systems. Out of these organizations, 80 percent struggle to keep up with the increasing agreement volume. Whenever important agreements are kept across a combination of email inboxes, shared drives, filing cabinets, and computer desktops, it can be challenging to find or remotely access a file. Even if you already know where to find the files, there is no guarantee you will access them unless they are perfectly organized.
Keeping your contract files in a highly secure online system ensures that all your important documents are easily accessible. Such a file management system is essential for nearly any situation that necessitates remote access to your contract and must be a critical consideration during your organization’s strategic planning.
Whenever unexpected issues prevent you or your employee from accessing the office, it’s essential that there is a safe way of accessing the agreements that are important to your organization’s daily operations. For instance, legal departments are more likely to face more agreement-related inquiries in response to various events that could be interrupting standard operations. Having a system that grants instant access to the right information to the authorized parties will streamline your overall operations.
Make contract contents clear.
Corporate advisors and other professionals involved in the contract monitoring and management process are must remain in complete control of all agreements files at all times. That means they should respond to any contract-related question within the shortest period possible and confidently know where to find those answers.
The ability to effectively demonstrate your knowledge and back all relevant claims with agreement data is critical for organizational success and reputation. In case you manage agreements manually, you are putting your employees and organization at risk of getting blindsided by agreement-related questions that you cannot address.
Indeed, relying on a manual agreement management system makes it very difficult to achieve a higher level of control of your organization’s contract portfolio. The reality is that there is no central place where authorized parties can access the contract information, which is why your employees or colleagues may be making uninformed choices without understanding how their decisions may be impacting your contracts and operations.
Most online contract monitoring systems have reporting features that allow users to view and share contracting data and insights with the senior management, department heads, and other authorized parties who need transparency into specific agreement information. Since contacts are kept in cloud storage, it becomes much easier to manage and access them whenever necessary compared to a portfolio that is divided across different computer desktops and offices.
Manual contract monitoring and management are time-consuming processes. There may be opportunities to streamline and sometimes automate various aspects of the contract monitoring process, which could eventually increase the overall efficiency of your team. But without the right tools in place, you are likely to waste a lot of employees’ valuable time on basic low-level duties that could be automated if you had contract monitoring and management software.
Suppose you are responsible for monitoring or managing a sizeable portfolio of contracts, and you are currently depending on a manual process. In that case, you already know how time-consuming it can be to keep up with all important deadlines, dates, and obligations to make sure all contracts stay in good standing. Additionally, the manual review process makes it very challenging to get necessary information within a short period in case a request is made. These challenges are likely to increase as the volume of contracts increases but can be effectively addressed if you have contract tracking and management software.
Identify opportunities and minimize risks.
Each agreement must be monitored continuously to make sure that its renewal makes economic sense to your organization. In case a contract renews automatically without your knowledge, there is a good chance you will be missing an opportunity to end it if it is no longer needed or is not performing. Tracking also opens opportunities to renegotiate favorable times or make updates that effectively comply with the important changes to industry laws and regulations.