The COVID-19 pandemic caused by the Coronavirus has put the world at standstill. The economy as a whole sloped downwards since the virus started to spread throughout all the countries. The stock market came crashing down and put businesses and industries in the quandary. The consequent of which, the world saw a huge leap in the trading contracts of different verticals being negotiated and renegotiated. This massive paradigm shift caused by the COVID-19 outbreak has complicated the management of contracts since the majority of the working population are forced to work from home.

The COVID-19 crisis has impacted on the business contracts from both supplier and customer end. Industries such as entertainment, fashion, travel and hospitality to name a few have seen mass shutdowns, where millions have lost their daily wages, the contracts are required to be amended accordingly. Whereas, the food and beverage industry, pharmaceuticals, agro-based supplies and logistics has been observed to have inflation prompting the businesses to revise and include special clauses in their contracts.

With Force Majeure in the hem, it has become more crucial than ever to embrace the contract management software for the orderly management of the contracts, tracking the changes and amendments made during the pandemic crisis and planning the transition to when the business resumes.

  1. Complexity in managing contracts

    Business entities around the ,world of every domain have lamented the complexity in managing contracts that the COVID-19 outbreak has created. However, the businesses that possessed and employed contract lifecycle management software in managing their contracts fared far better than those that did not use the software. The complexities in managing contracts manually in this pandemic stricken era are enormous. Apart from being tedious, manual management of contracts with a lower number of employees causes error in filing and ultimately in reporting. Further, it also increases the chance of manipulation by the moderators which are detrimental to the business, especially in this time and period. The whole point of managing the contracts is invalidated when there is inaccuracy in the process. Contract management software, on the other hand, helps the user to regulate the documents with decreased discrepancies.

    AI technology can be used to assist business leaders to understand compliance requirements easily, get actionable insights and take effective action. They can even help businesses in maintaining compliance through the use of deep learning and natural language processing to read compliance rules and notify stakeholders of any regulatory changes.

    Click here to read How To Improve Procurement Efficiency And Speed With Contract Lifecycle Management Solution?

  2. Benefits of Contract Management Software

    The contract management software revolutionised the process of managing the contracts, the benefits of which are highly relevant in this pandemic stricken period. The COVID-19 crisis has rather opened a forum for the business entities to adopt the contract management software to function efficiently and keep in line with the novel pattern of supply and demand.

  3. Hassle Free Usage

    The most basic benefit of a CLM software or Contract Lifecycle Management software is that it is quite easy to implement. The software consists of a central repository which enables the business to store all its contracts with the vendors, clients, customers, partners and employees in a centralized platform. This enables the business to control the documents without any mess effectively.

  4. Track Changes

    The pandemic has affected the business to reassess their contracts and make amendments and extra clauses through negotiation to control the damages caused. Since Force Majeure is set in motion due to the COVID-19 outbreak, the mass number of alterations to the contracts will cause the business that is run with a lower number of employees to stagger. The contract crisis can be averted methodically through the CLM software which tracks every changes, alterations, amendments, inclusions and exclusion made in the contract. This enables the administrator to hold the reins and steer through the storm. It also helps the business to get an insight into the performance of the contracts during the crisis, thereby aiding them in forecasting for the post-pandemic period.

  5. Collaboration

    Perhaps the best feature that the contract management software has to offer is that it enables the business to collaborate among its team easily and get across the rectifications to other collaborating partners. The pandemic has ensured that it is essential and life-saving to stay at home to reduce the risk of exposure. The contract management software aids in collaborating and making amendments to the contracts even with the help of a minimal working force.

    Click here to read How To Improve Procurement Efficiency And Speed With Contract Lifecycle Management Solution?

  6. Future Reference

    With all negotiations and alterations recorded duly in the system, the contract management software helps the business in providing insight into the performance of the contract during the pandemic. Once the restrictions during the pandemic are relaxed and when the general activities resume, the business can gain knowledge on how to draft the contract on the post-pandemic era, the amendments that are to be effected and extended and even draft a whole new contract with a clause for a business relationship during natural disasters. Such benefits can be reaped only by installing an effective contract management software.

    Contracts are an integral part of a business’s continuity. They seal the nature, terms, conditions and the period of the relationship that a business has with its acquaintances. A pandemic may have rattled the economy and therefore the business, but contracts stay for the length of the stipulated period with relevant adjustments made to accommodate the current situation. It is always beneficial to choose a contract management software to manage all such contracts.

    DocuCollab is one of the best providers of cloud-based Contract Management Software services in the industry. Create, execute and manage contracts during the pandemic crisis through the software efficiently to mitigate risks drastically.

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