Improving efficiency in the contract creation process
Contracts are the legal basis for all of the business interactions between a company and its customers, partners, and suppliers, among other parties. Even so, the process is often marked by a slow pace and an inefficient use of resources.
Importance of managing contracts
Contract management is the process of keeping track of all the details of a contract’s life. This includes everything from the first requests, schedules, and payment dates to the contract’s end and renewal. One of the steps in this process is a performance analysis of the contract’s terms and phrases. The goal of this effort is to help companies do their jobs better and reduce financial risks.
Also, it is becoming more and more important to use contract management that is both open and effective in order to stay in line with regulations.
Benefits of contract automation using Contract creation software
Managing contracts using Contract Creation software cuts down on the chance of making mistakes and losing money. This shows that businesses are looking into more and more ways to automate their processes to improve their performance and reach their goals. By automating these tasks, you can cut down on the amount of paperwork and make the process easier and more streamlined at the same time.
With the help of automation, activities that aren’t connected but still cost money can be turned into centralized, collaborative processes that offer visibility, efficiency, and strategic advantage.
1. Security and centralization
Contracts and the papers that go with them are often kept in separate physical folders. Most of the time, there is no access control, which makes it hard to keep track of documents. Using this method to store files also means using more paper and a lot of space.
By keeping contracts in one place, the whole process is more open, safe, and searchable. A computerized system for managing contracts makes it possible to store things in the cloud. This system keeps files safe by encrypting them, so there’s no chance of them getting damaged or lost.
2. Easy and practical document management
Companies can’t manage contracts as well as they could because there aren’t enough standards. People can end up working on old versions of documents, which slows down their work and makes businesses vulnerable.
The automation of this process makes sure that it is consistent and has a structure that encourages integration. This means that it improves efficiency by making it clear what needs to be done and preventing mistakes, which speeds up the whole chain. In addition, it makes sure that staff members always use the most up-to-date versions of the papers mentioned above.
3. Agile process
Most of the time, contracts are given to more than one company while they wait to be signed. During this time, they are often lost or forgotten because there is so much other paperwork, which slows the process to a snail’s pace.
When a process is automated, it becomes much easier to do things like send requests, get approvals, send notifications, and give out responsibilities. Requesters and the legal department can see in real-time how the document is coming along. This makes it easier for the team to work together and gives them tools for editing, so they can do so in a way that is both quick and easy.
You can also set up automatic reminders to let important people know when the version of a document changes. This makes it impossible for contracts to pile up on desks or get lost in e-mail inboxes, and it also makes it impossible to lose important business agreements. Digital signatures can also be used, which speeds up and makes contracts safer the way they are carried out.
4. Simplified oversight of terminations and renewals
In every contract, there are clear dates for delivery and ending. When managing contracts, it is important to know what to do when the end date of a contract is getting close. Spreadsheets take a lot of work for people to manage and keep track of contracts’ validity and renewal, which is why many legal departments choose to use them.
When this method of management is used, there is a chance that contracts will be made that are automatically renewed every year, but with terms that get less good every year. Companies run the risk of non-conformances in more serious situations if they don’t follow the terms of the contracts they’ve signed or if they keep honoring contracts that are no longer valid.
Here is an example of a contract made by Perfect Doc Studio.