The Coronavirus COVID-19 pandemic struck the world with a force that was not observed in a century. A mild outbreak in Wuhan, China, gained force and momentum and spread across the world in a matter of few weeks. During late March of 2020, almost all the countries went into a complete lockdown and banned both International and domestic travels. This caused a huge ripple effect which affected every business and industry across the world. Due to the sudden changes, there was a mass force majeure occurrence in contracts worldwide. A sturdy contract management software can help with such shifts and provide benefit in the following ways:
The pandemic spread like wildfire crippling economies and toppling economies. Every business had to face the risk of loss and, it displaced the state of employees. The COVID-19 crisis has created an unbalanced scenario where businesses are scrambling to make ends meet. It is especially tough for companies who deal with multiple contracts. With contract management software, however, companies can easily manage the contracts. Features such as centralized repository and easy retrieval systems enable the contract managers to document the problems that have arisen on the course of the pandemic and deal it with efficiency. Since the software allows the managers to organize the contracts with keywords and phrases which in return comes in handy during difficult situations such as the current one. In the manual contract management, this is a Himalayan task which can result in more clerical errors.
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Reduces the rate of risks
The sudden lockdown meant that the businesses had to make decisions that would save the interests of their companies. Companies who adopted the contract management software to manage their contract had the advantage of handling the risks better than the manual counterpart. With the software, the contract managers can elaborate in detail about every aspect of the business, including unforeseen risks. When the lockdown started, the contracts of many businesses fell under force majeure. The software, however, provides the user with provisions and clauses in case of unexpected occurrences which covers their business. Considering COVID-19 outbreak as an unforeseen situation, companies with a working contract management software were able to handle risks effectively as compared to the companies with manual contract managers.
Ensures Business Continuity
Perhaps the most basic rule of a business is ensuring its continuity. Business continuity would have been a textbook concept for most businesses worldwide until the pandemic hit almost all the countries. The COVID-19 crisis endangered many startup businesses and crippled quite a few trades in the process. Every industry took a toll from being hit and, it became more than essential to ensure business continuity to keep the company afloat. With contract lifecycle management software, companies were able to continue their business by working remotely. The managing team were able to continue their contracting process from the safety of their homes. This is not possible with manual contract management as it involves being physically present in the office to sort out various contract related issues.
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Easy Execution of Contracts
For a contract to be executed and put into motion, it has to be signed by all the involving partners, vendors or customers. However, the lockdown which was effected by the spread of the COVID-19 outbreak made it unsafe for people to interact. Companies with well-modelled contract management software were able to easily cross this hurdle with the help of E-signatures. With E-signatures, the companies can easily obtain the digital signatures of the contractual parties to execute the contract. This feature does not need physical communication or interaction, making it utterly safe in this current scenario. The software provides the window for alterations and renegotiations and gets the approval of the same within a matter of hours.
Control over the contracts without disruptions
Companies that deal with a lot of contracts will have the problem of managing them efficiently. Such problems got multiplied with the onset of the pandemic making it a huge organizational burden for the contract managers. The software comes in handy, especially, during the current situation where the contract managers can work efficiently even without being in the office. The lockdown period had resulted in various businesses to alter their contracts to accommodate the sudden change, which resulted in work overload for the managing team. The software is designed to access from any location and at any time, which makes it idealistic of remote workers. With the help of the software, the managing team will be able to handle, manage and execute all the changes made in the document effectively.
The pandemic has proved that this is the best time to invest in a sturdy contract management software if not before. Apart from being an asset during the lockdown, the software will also provide valuable insight into the performance of the past contracts and forecast future scenarios. With the software, the companies can mitigate risks and ensure that the business continuity is not affected due to any reasons.