If you’re thinking about investing in contract management software, before you start the selection process we’d like to call out a few misguided presumptions. We know such myths can discourage potential software users like you, so you might lose the opportunity to maximise the value of your contracts.
In this blog, we set the record straight and debunk three prevailing myths about contract management software.
Myth #1 – ‘My organisation has low contract volume and complexity, so it’s not worth our while investing in contract management software.’
Though you might feel that spreadsheets and other manual solutions – such MS Word, Excel, emails and shared drives – might be sufficient for a small business, the high price of low-cost contract management is significant.
Spreadsheet-based contract management presents challenges around security, transparency, compliance, productivity, and accountability – and it’s not adequate to support the entire contract lifecycle.
Manual contract management solutions like this offer limited configurability and features, insufficient document storage capacity, limited permissions and access for a finite number of users. Such solutions will fail over time because they lack:
- contract lifecycle process support
- system scalability and ease-of-use
- consistency and easy adoption
- automation and predictability
- visibility and security.
There are tangible benefits for small businesses to invest in contract management software, which will improve processes, reduce costs, mitigate risks, save time and increase ROI.
You’ll see the positive impact of your investment in high-quality, cutting-edge contract management software quite quickly. The ROI of an advanced platform like this comes from:
- simple and secure document drafting and storage
- risk mitigation
- improved communication, collaboration, and negotiation
- automated importation of legacy contracts
- tracking of key dates, milestones and renewals
- AI-based contract creation, text analysis and risk mapping tools.
You can significantly boost your ROI by streamlining your contract lifecycle tasks, saving time, reducing risk and maximising the value of your contracts.
Myth #2 – ‘My contracts and documents will not be secure, leaving personally identifiable and other sensitive information at risk.’
Security is a top priority when it comes to contract management and the storing of documents with sensitive data. Whichever contract management system you choose, it must protect access, availability of data and confidentiality. Reputable contract management software will give you comprehensive security both for access and storage of valuable information. The best systems will also give you the option to choose either SaaS (cloud) or deployed options.
Cloud-based software can raise red flags regarding security and storage. Generally speaking, expert assistance and support is available directly from the supplier. With leading contract management software, you can be sure that your platform of choice supports high-level security and keeps metrics compliant and up-to-date.
Myth #3 – ‘I will have less control over my company contracts.’
The prospect of automating contract management processes, which you previously performed manually, can bring about feelings of lost control. However, streamlining your contract lifecycle process with transformative digital tools doesn’t restrict your access to, and interaction with, contracts. On the contrary, contract management software gives you more control and governance over your contracts.
Contract workflows
Software that provides automated contract workflows reduces contract lifecycle delays – it can advise contract management personnel using automated alerts, contract notifications and task reminders. Intelligent workflow automation enables your contract managers to leverage contract process management, using user-defined fields, reporting and analytics tools and audit trails etc. These tools don’t take away the control you used to have over your contracts, but rather help you gain control over the entire contract lifecycle with a standardised process.
The entire contract lifecycle can easily be accounted for with contract and document collaboration, expedited negotiation and easy approvals. Contract management software helps businesses like yours meet key dates and milestones, from requests to renewals. Additionally, audit trail history provides organisations with an up-to-date record of contract and document changes. Your contract management professionals will have a greater awareness of task responsibility, upcoming important dates and renewal opportunities.
Contract management software helps companies see faster contract-to-close rates. Reputable platforms that support end-to-end contract lifecycle management keep the contract management process consistent and unified.
Contract tracking
Creditable contract management software also supplies organisations with innovative contract tracking features such as a secure contract repository, approved
templates and clause libraries for efficient contract drafting and performance insights – providing an advanced understanding of what you need to succeed.
Key tracking tools for contract management teams include:
- version tracking
- tracking of multiple attachment types (including contracts, invoices, purchase orders, and supporting documents)
- pre-award and post-award tracking
- audit tracking and logging
- supplier compliance tracking.
Automated contract workflow management and tracking tools promote better contract oversight, control over contract lifecycle tasks, accountability, a standardised process and improved communication with suppliers and stakeholders.
Contract Insight from Four Business Solutions
Contract management software can transform your contract management process.
Contract Insight can help you manage an entire contract portfolio with intelligent workflow, automated alerts, AI-based contract management, data extraction, audit trails, contract reporting and analytics.
About Four
Four helps small and multi-national organisations enrich the way they work. From supply chain to procurement and contract management, we have decades of experience helping companies forge ahead in the global market. If you’d like a demo of Contract Insight or simply to find out more about what we do, please call John O’Brien at Four Business Solutions on 0800 6250 025.
John O’Brien is the CEO at Four Business Solutions, global business consultants and software integrators providing business processes improvements in Finance, Supply Chain and Operations, across a broad range of industries.