Contract management software is more essential now than ever; due to the pandemic, businesses everywhere are being forced to find digital solutions for processes that once took place in person.
Coronavirus or not, the benefits of contract lifecycle management software are plenty, including improved negotiation, increased collaboration, better visibility, more organization and audit compliance.
What Is Contract Lifecycle Management Software?
Legal contract management software is used by businesses to manage the entire process of legal contracts, from the inception, negotiation, signing, and renewal phase.
This software makes the management of legal contracts much easier, resulting in less mistakes, more efficiency, and a better experience overall.
Legal contracts are the heart and soul of all commerce – small businesses, mid-sized businesses, and corporations alike all incorporate signing contracts into their daily business operations. Without contracts, operating a successful company would be very difficult.
It doesn’t matter how big or small a business is, contracts are necessary.
The contract process has remained similar for centuries now. At the heart of it, contracts are an agreement between two or more people that are signed on a legally binding piece of paper.
That said, certain things have changed; for example, contracts are now much more complex than ever before. Contracts must now include digital licensing and other elements that were simply not a factor only decades ago – not only that, but we are now signing contracts more than ever before.
Why, then, when computers have altered the entire landscape of business, are contracts still being signed and managed the way they were 100 years ago?
This is exactly the problem that management contract software solves, and businesses that are implementing these software solutions already are one step ahead of everyone else.
Contract management software allows businesses the ability to create, sign, store, and manage all of their contracts through one single program online; this software is different from saving document files online. Using management contract software, files are stored inside a cloud – they are not attached to physical computers, therefore they may remain untouched by damages or loss, factors that have destroyed contracts in the past.
Due to COVID-19, legal contract management software has exploded in popularity; what was once an advantage is now a necessity, and businesses who waited to take contracts digital are now paying the consequences. There are very few downsides in comparison to the countless benefits of managing contracts online, which is why we will continue to see more and more businesses permanently moving towards using contract lifecycle management software.
Here is how CLM software handles every single step of the contract lifecycle:
- Create (users can create new contracts with ease thanks to a streamlined online process as well as with the use of templates – these contracts are automatically verified for legality by the software)
- Collaborate (perhaps one of the most important features of management contract software, multiple parties within the same business or organization can access contracts at one time from any location – by eliminating the need for physical meetings, the workflow and negotiation of contracts is much more efficient)
- Sign (no need for a pen – contract management software allows for documents to be legally signed via computer, a real game-changer)
- Track (physical documents are difficult to track compared to how it’s done via software – all phases of contracts can be viewed and retrieved at any time. Automatic alerts can be enabled to notify the corresponding team member about any important updates, and the ability to look at all past versions of the contract and the relevant negotiations makes it easy to monitor and remain legally in-bounds)
- Renew (we know that contracts do not end once they are signed – what was once a difficult phase of the contract lifecycle is made easy by management contract software, as all obligations and milestones involved with a contract are shown to the relevant parties whenever necessary)
Management Contract Software: 5 Benefits
Here are the five main benefits of legal contract management software.
Starting from the very top of the legal contract process to the very end, efficiency is drastically improved by using management contract software as opposed to physical documents.
Creating contracts is as simple as choosing a pre-existing template and editing various elements – signing can be completed by all parties involved on their own time and at their own location, without ever needing to meet in person.
Workflows can be automated, and the software prevents users from making changes that go against legal restraints.
All in all, the increase in efficiency of the entire contract lifecycle process is an entire benefit in and of itself; the reduction in labor hours can have exponential results in any business that deals with legal contracts every single day.
Negotiation & Collaboration
Contract management software eliminates the need for back and forth in-person negotiation; instead, all involved parties are notified by the software as to what tasks are required of them.
Everyone knows their role and what they have to do at all times.
Contract reviews can be done simultaneously from all various locations – long meetings are no longer necessary.
The ability to update contracts versions, make comments, discuss, share, and monitor changes is all enhanced by legal contract management software.
Improved visibility is another benefit of management contract software.
Now, parties can view contracts at all times – 24/7 – from their computer, in order to see what stage contracts are at and what next steps must be taken.
The increased visibility and monitoring of legal contracts using CLM software is a major improvement from the traditional, manual contract lifecycle.
Any business owner knows that proper organization is crucial to success, and legal contract management software does just that.
The ability to view any contract within a company with just a few clicks is a massive benefit – contracts can be searched and viewed within CLM software based on their date, type, sector, etc.
CLM software completely eradicates the need for physical storage and handling of contracts. You can also find more information here.
Contract lifecycle management software gives businesses a complete history of all edits made on any specific contract; not only that, but this can all be accessed through one single software by any team member at any time.
Audits are made simple by this ability, therefore compliance is met much easier.
What Is The Digital Benefit Of Contract Management Software
Contract management software for legal departments (and other departments) streamlines and automates the entire lifecycle of contracts.
Physical legal documents are a pain and, in the year 2020, there is simply no need to manage them without the help of online software; contract management software for small business, big business, or any sized business is a major asset.
What Can Contract Management Software Ensure?
What contract management software can ensure is better compliance, efficiency, organization, and an overall better experience for businesses and all parties involved in your legal contracts; if you have yet to employ CLM software in your company, now is a better time than ever to do so.