Contracts are the lifeblood of every modern business, from tiny startups to giant multinational firms. By enforcing the terms of an agreement between two or more entities, contracts are the foundation of a trusted and reliable relationship between separate individuals or companies.
However, you might have dozens, hundreds, or thousands of contracts in force at the same time. Managing and administering them all requires a great deal of time and effort as a result. Fortunately, dedicated contract management software can significantly reduce the resources you need to expend on the task of contract management.
The right contract management solution will bring benefits to the entire organization. What’s more, with features like user-based and group-based permissions, you can guarantee that each department or role only has access to the files that are relevant to their work.
In this article, we’ll explore five areas of your business that have a lot to gain from contract management software.
The benefits of contract management software start at the top in the C-suite. Contract management software gives executives the 30,000-foot view of the goings-on at their organization, providing insight into all aspects of their company.
Which businesses do you currently have a relationship with, and what is the nature of that relationship? What are your obligations as a vendor or partner? How do these contracts impact your long-term strategic outlook? The best contract management software will be able to answer all these questions and more for members of the C-suite.
2. Human Resources
The goal of your human resources department is to manage all employee-related activities—which means that contract management software is a natural asset.
Contract management software allows you to keep track of all employee documents and contracts, including employment agreements, employee benefit forms, company policy acknowledgements, etc. Additionally, there’s always a chance your organization may face issues with wrongful termination lawsuits, breaches of non-compete clauses, and violations of non-disclosure agreements from former employees. Having these relevant documents immediately on hand is invaluable in order to sort out any disputes.
In addition to the internal contracts of HR, companies also need to manage external contracts with their customers, partners, and vendors. This responsibility often falls on sales representatives, who need to stay on top of upcoming expiration dates and negotiate renewals before the contract lapses.
Unfortunately, this is easier said than done, especially when 57 percent of sales reps fail to meet their annual quota. Contract management software helps your sales reps manage their current relationships and understand their performance in order to negotiate new deals more effectively.
The flip side of sales is the marketing department, whose members can also benefit from contract management software.
Marketing service agreements are contract documents that delineate how one company will supply marketing services to the other company: for example, building a website, generating marketing content, managing social media, and launching a new advertising campaign. If you choose to outsource some or all of your marketing activities, the in-house marketing team can use contract management software to manage your service agreements with vendors and other providers.
The legal department is the obvious beneficiary of contract management software, since it’s ultimately responsible for all of a company’s internal and external agreements. Indeed, the legal department is often the first place that organizations notice the return on investment of their contract management solution.
Contract management software will make your legal operations more streamlined, standardized, and efficient. By reducing human input and increasing automation, the top contract management software saves you time, cuts down on the chance of human error, and lowers the level of risk that you face as an organization.