While the cloud was once associated with cost savings and efficiency, it’s now a more advanced tool for managing contracts. While many companies still use paper for managing their contractual obligations, it’s clear that this method has its limitations. Manual contract management is a slow and costly process that can lead to missed deadlines and mistakes in delivering on promises made by your organization. Here’s what you need to know about contract lifecycle management software and managing the contract lifecycle in the modern era.
What is a contract lifecycle?
A contract lifecycle is a process of managing a contract from start to finish. It includes the following stages:
Procurement: This is where you find and select a vendor for your product or service.
Negotiation: This is when you negotiate terms and conditions with the vendor over what they will deliver and how much it will cost.
Execution: This is where you write up an agreement between you and the vendor that outlines delivery dates, the scope of work, price, etc., as well as any other obligations required by both parties. This can also be called signing or formalizing the contract.
Management: This is where all those little things must be well taken care of like making sure everyone follows through on their commitments, monitoring progress against deadlines and milestones to make sure nothing slips through unnoticed and potentially causes big problems down the line. You can also use this process to resolve conflicts between parties if they arise.
Differentiating between contract management and contract lifecycle management
Contract management is the process of managing all contracts, whereas contract lifecycle management is an approach to managing all types of contracts over the life of the contract. Contract lifecycle management includes contract renewal, change control, and contract expiry.
What are the benefits of automating contract lifecycles?
Contracts are a key component of any business relationship, but they can also be one of the most complex parts of the deal cycle. Automating contract lifecycles with automation technologies will help you eliminate manual contract management and reduce costs, increase efficiency and improve the processes that surround managing your contracts.
Automating your contract lifecycle will provide visibility into what is happening with all your agreements. You’ll know who has access to which contracts and when they were last accessed. This allows you to ensure compliance with internal policies as well as external regulations like GDPR (General Data Protection Regulation).
You can also use this data to run reports on how many contracts are being managed in each stage of their lifecycle so that you can make sure everything is moving smoothly at all times.
The hidden costs of managing contracts manually
There are several reasons why you might want to consider automating your contract management. The most obvious is that it will help you save time and money. Look at the potential cost savings in more detail:
Reduced risk of human error: Contract management is all about making sure that the right information goes into each contract, but what happens if something gets missed? This can result in costly mistakes and lengthy delays down the line. Automation helps eliminate this problem by ensuring that there are no errors when entering or managing information in contracts – which also means less time spent on fixing them later on.
Reduced time to get contracts into place: If you currently have someone manually enter new contracts into a database, they may spend hours doing so every week – which adds up quickly over time. With automation tools, however, it takes minutes (not hours) to upload each new contract or change request into your system – allowing your team members plenty more free time for other important tasks like improving customer service or developing new products.
With businesses moving to the cloud, it’s time for contract management software
As businesses move to the cloud, it’s time for them to upgrade to contract management software. Contract management software is essential for businesses that are moving to the cloud because it helps them manage their contracts across multiple platforms. Cloud-based contract lifecycle management software helps you manage your contracts efficiently and securely, so you can focus on other aspects of running your business.
Contract lifecycles are a crucial part of any business and they must be managed effectively. Automating your contract lifecycle management will save time, reduce costs and help you avoid mistakes that can cost your company in the long run. The best way to make sure you’re doing everything correctly is by using contract management software from a trusted provider who will work closely with you to ensure your needs are met from start to finish.