What is Contract Management?

Contract Management refers to the process of creating, managing, storing and executing contracts with the help of a contract management software. The advent of technology and the COVID-19 crisis has resulted in the rise of businesses opting for automated contract lifecycle management software that has simplified the process of maintaining the contracts effectively. Further, they are have been beneficial during the lockdown for companies which had their employees to work remotely from home. The contract management system software is well-equipped with features such as cloud management, team-collaboration, centralized repository and more. These features enabled and simplified remote employees to work efficiently and uphold the company’s business continuity. A contract to be successfully executed, it needs the mutual agreement of all the concerning partners. The contract is valid only when it contains the signatures of all such partners. Traditionally, the hardcopy of the software will be sent to each partner to obtain their signature. With contract management software, however, e-signatures can be procured to simplify the process. E-signature is an important feature that makes the execution of contracts viable and secure during this delicate period.

Click here to read The Benefits Of A Contract Management Software In The Pandemic Stricken Period

The benefits of using E-signatures are as follows:

  1. Financial Impact

    Using E-signatures has a positive financial impact on the company. Generally, the contract to be officially agreed, it has to be signed by all the involving partners. The contracting companies might be geographically distanced, and hence it increases the cost of sending the document back and forth to get it signed. With E-signatures, there are no such hassles and gets the job done easily and effectively.

  2. Business Continuity

    Many businesses and industries have started to embrace contract management software which makes their contracting process more streamlined and simple. More importantly, E-Signatures have proven to be one of the most beneficial contract management tools during the lockdown due to the COVID-19 outbreak. E-Signatures ensured that the business of the company continues without any break. The contracting parties can complete an agreement by signing it through e-signature without the need of meeting others in person. Bringing in new businesses and starting a new project is made easier with e-signatures.

  3. Saves Time

    It has become more important than ever to be quick in the discharge of duties to secure vendors and customers for a long time. Everyone prefers the business that gets the job done swiftly. With e-signatures, companies can quickly agree upon a contract by signing it remotely, thereby decreasing the contract turnabout time. With reduced signing time, the contracts can be put into effect immediately. It removes the unwanted wastage of time and saves effort by manifold.

    Click here to read Working Remotely Made Easy With Contract Management

  4. Simplifies the process

    Contract management tools have the ability to streamline the entire process of contracts. From the creation of the contracts to the execution of the same, every aspect of managing contracts can be done efficiently through the software. Especially, getting signatures from all the contractual partners was a tedious job since it takes time, money and effort to get it all signed and then executed. With e-signatures, however, the process of executing a contract becomes easily achievable without any hassles.

  5. Real-time Updates

    A huge benefit that makes e-signatures stand apart from the conventional method is that with e-signatures, the company can get real-time status updates. When a company deals with multiple contractual partners, the hassle of getting the contract around and signed is a huge hurdle. With e-signatures, the contract managers can get updates on who has to sign the document yet and follow up with them to get it done swiftly.

  6. Increased Security

    Sending the contract documents via mail to the involved parties hold a certain amount of risk as there is always a chance for the documents to be intercepted or get lost in the transit. There is no guarantee that the sensitive documents that the company sends would reach the intended receiver. E-signature eliminates such risks since all contract lifecycle management software are equipped with a security system that helps the organization to maintain its defence against perpetrators. The system ensures that the document is available only to the intended party and get the document signed effectively.

    Click here to read How To Effectively Manage Contracts In The Post-Pandemic Remote Working Era

  7. Convenience

    The E-signature tool provides a level of convenience that cannot be achieved with the conventional method. Getting the document signed is an elaborate process that involves preparing the hardcopy, mailing the documents, getting it signed by a partner and the process goes all over again with another partner. With e-signature, however, the partners can easily view the documents, review and sign it. A process that took days and weeks to be completed can take a matter of a few hours or a few days at maximum.

    The contract management software has streamlined the entire process of managing contracts, and e-signatures has simplified the procedure of getting the documents signed. The pandemic has brought forth the importance of installing a contract lifecycle management software for clean maintenance of documents.

Learn how DocuCollab an help simplify the contract process and benefit your organization here. Click here.