Automation has become one of the most important drivers of efficiency in the digital era. Studies show that businesses can cut costs by up to 90% and significantly speed up turnaround times by digitising the most information-intensive processes.
One area you might not have considered digitizing is contract lifecycle management. This blog will have a deep look at the unexpected benefits of digitizing contract lifecycle management (CLM).
Digital contract lifecycle management is far lighter on its feet than its manual predecessor. By implementing the right CLM solution, companies can easily digitize past, current and future contracts. This empowers continual updates and changes to be done as they happen and without duplication of effort.
Full digitization of contracts makes it easy for businesses to have a full audit trail of any amendments. Key changes can consequently be easily found and attributed to the responsible person or (authors).
A key problem with manual contract lifecycle management remains in renewals missed or overlooked due to human error. With an automated contract lifecycle management system in place, you will not miss any key dates, ensuring that service provision remains uninterrupted. This has legal and strategic benefits, too, with exposure to out-of-contract penalties becoming a thing of the past and more time made available to negotiate better deals.
Dealing with contracts manually is an unenviable task. Still, with the right contract management solution in place, organizations can substantially reduce or eliminate the processes involved in managing, tracking and administering agreements.
Once a contract has been signed, it is retained in the digital domain – an environment that ensures it is easily retrievable, backed up and able to tell the story of any amendments made.
The Institute of Supply Management discovered that the average Fortune 1000 company retains anywhere between 20,000 to 40,000 contractual files.
Those colossal numbers neatly illustrate how big a task managing such documentation is likely to be when undertaken manually. Similarly, few businesses have the time or resources to devote to something that appears to offer no immediate benefit.
However, if left unmanaged, that stockpile of contractual material can create significant legal issues and may put the business that owns it at a serious commercial disadvantage.
By digitizing the contract management aspect of your business, you’ll gain peace of mind that some of the most important documents in your organization are managed cost-effectively.
App4Legal contract Management solution provides accessibility, centralization, visibility and automation throughout your business. Everything you need to have all your contacts in one place, access them instantly from anywhere, get automatically notified of key dates and tasks, and uncover insights about the financial health of your contracts.