5 sure ways to convince your boss to invest in a Contract Management System

Contracts have existed for centuries and form the bedrock of any commercial transaction. Businesses all over the globe, irrespective of size, industry and region have one thing in common: they all operate on a basis of contract foundations. The contracting system has undergone rapid evolution from the days of Bartering and Oral Contracts to Written and Sealed Contracts due to the advent of technology and our dynamic society. This article talks about how contract management system has been proven to boost business efficiency and improve company’s topline and bottomline.

A seamless contract management system empowers your organisation to extract the maximum value out of the agreements you have worked so hard to negotiate while reducing your exposure to risk. For every business, time is money and an automated contract process is a must. It helps to reduce your contract overload and at the same time increase Return on Investment (ROI) and unlock your true value potential.

Logically speaking, if contracts are executed faster, the business can collect on them sooner. If the contracts are detailed and meticulous, fewer disputes and fewer time-wasting contract revisions will arise. According to a Global Legal Survey done by Artificial Intelligence (AI) Solutions Provider, APPTUS, contract approval time drops an average of 82% with the use of a Contract Management Software. This means that the Top Management will rest assured knowing that their contract management process is working seamlessly. If you agree that the same holds for your business, are you currently using a contract management system? If not, we have compiled a list of 5 reasons as to why a Contract Management Solution is crucial to your business:

1. An automated contract process is a must!

   According to the 2015 State of Contract Management Survey by SpringCM, 71.3% of businesses lack automated contract processes. Majority of businesses depend on manual procedures to execute the contracting process from start to finish. Applications like Microsoft Word, email and Excel are being utilized to manage and execute the contract process. However, it is really easy to lose track of your edits combined with the hassle of saving numerous versions. Besides, there is the gaping hole of hidden metadata and an overwhelming number of Redlines. This normally alters the composition of the entire contract in question. To err is human and a contract handled by only humans may have numerous errors. Where sales contracts are involved, you don’t want to end up with either a bad contract or a complex legal issue on your hands.

   DocuCollab Contract Management Software is an investment that can add a lot of value to your company. DocuCollab is a one-stop contract management software that helps businesses to automate every step of their contract management lifecycle using seamless contract lifecycle management tools right from idea to execution.

   Click here to read Six Complications of Redlining Contracts in Word

2. Time is money!

   A recent Forrester survey has stated that it takes about 3.4 weeks to complete the contract signing and approval process in the IT Services Industry. Rationally speaking, that is a lot of time and businesses don’t have time. A manual contracting process comes with its share of demons. Contracting professionals stumble while dealing with direct contract requests from multiple departments, searching through multiple shared drives and folders, digging through old e-mails, using Excel Spreadsheets to track progress and tracing contracts. You might think that this process saves you a lot of money by discarding the need for a contract management solution, but that is not the case. Besides, it is not fair on the part of the contract professionals to sift through numerous old contracts while juggling scores of new contracts.

   DocuCollab Contract Management Software is leading the digital revolution to ensure that you save time and money by automating and accelerating your contracts, proposals, quotes and other document transactions by up to 70% with a host of other revolutionary features. DocuCollab is a simple way to minimize e-mail overload and maximize productivity. This ensures that your team will finish reviewing documents and negotiations significantly faster. DocuCollab is an innovative addition to your company which will become an irreplaceable everyday contract management tool.

3. Avoid Contract Overload!

   Contracts are a vital part of building relationships and completing business transactions. According to a survey done by Pricewaterhouse Coopers, an industry giant, the average number of contracts range between 20,000 to 40,000 for an organization of their magnitude. However, a large number of businesses suffer from contract overload. Their limited capacity to manage the overwhelming volume of contracts being executed by them affects the entire contracting process. Organisations, in turn, fail to thoroughly understand the legal implications of their contracts rendering them ineffective while assuming the correct amount of risk. This causes problems later on and poses significant risks as contractual issues are harder to manage at a later stage of the contracting process. When this happens the top management takes certain decisions which are unsupported by data, opening the doors for unnecessary comparison resulting in weak contracting stances, monetary losses or even reputational damage.

   DocuCollab has developed a patent-pending micro-collaboration contract management software that makes collaboration on documents much easier. You will control the access to the documents and share only the portions of the document that need editing. With features like Collaborative Editing, Conversation Channels, Paragraph Level Security, Integrated Data from CRM, Real-Time Change Tracking and Secure External File Sharing, contract overload is a thing of the past.

   Click here to read What CEOs need to know about Digital Contracts?

4. Improve your Return on Investment (ROI)

   According to the 2015 State of Contract Management Survey by SpringCM, 29.1% of businesses attributed increased sales productivity as the foremost business force behind contact management. In the current scenario, sales productivity is turning out to be one of the reasons why companies are investing more and more on contract management solutions. This should not come as a shock to you, given the duration of these contract processes. Companies today are investing, innovating and revolutionizing the leading-end of their sales pipelines to improve their ROI. However, they are not eliminating manual and outdated contracting processes, in turn sinking their ROI further. Your business may have an outstanding sales process in place but a proper contract management solution improves your ROI drastically.

   DocuCollab, the perfect contract management software for sales gives you the advantage of document storing features, real-time editing and feedback which will increase your sales team productivity by up to 70%. DocuCollab will ensure that your contracts are signed quicker and your team can focus more on selling instead of the actual contracting process.

5. Reclaim your lost revenue!

   According to the International Association for Contract and Commercial Management (IACCM), businesses lose an average of 9% of annual revenues due to poor contract management practices. It is a known fact that the majority of businesses have a large chunk of their spending locked-in contracts. Even after knowing this universal truth, most businesses invest relatively limited resources in contract development and vendor management. It must be shocking to note that average procurement operating expenses across sectors are usually less than 1% of the total expenditure. This underinvestment leads to the omission of a significant source of value. Besides, suboptimal contract terms and conditions combined with a lack of effective contract management reduce this revenue even further. For instance, this 9 per cent would have been equal to about approximately $2.5 trillion in value for Fortune’s 2016 Global 500 companies.

   DocuCollab Contract Management Software automates your agreements, increases your bargain speed and quickens income flow by up to 70%. A micro-collaboration tool like DocuCollab will help you save both time and money. It uses a central repository to share and manage documents and contracts ensuring that your sales team has all the information in one place. They can instantly send and receive contracts making the negotiation cycle shorter. A necessary investment in a Contract Management Solution like DocuCollab ensures optimum returns in the long run for any business.

Click here to request a demo today discover how your business can benefit using DocuCollab Contract Management Software!