Selecting a contract management solution can be a daunting task. There are many different software providers available, all with different features, and it can be hard to know where to start. In addition, depending on your company’s resources and capabilities, there may be a small team tasked with overseeing a rather voluminous contract portfolio. With so much at stake - and so many irons in the fire - how do you decide which contract management solution is right for you?
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Developing a Vetting Strategy
As many businesses grow, and more contracts are added to the portfolio, relying on spreadsheets or a manual process can lead to risk and missed opportunities. Contracts are vital business assets and must be treated accordingly. This requires implementing a coherent contract management strategy and utilizing contract management software to facilitate oversight and streamline productivity.
A first step a company can take in correcting the problems associated with poor contract management is to take an honest assessment of their current process and where it falls short. An automated contract management solution with a combination of practical features may be able to address these shortcomings and improve efficiency, reduce risk, and save money in the long run.
Primary Problems of Poor Contract Management
Despite the fact that there is practical, affordable contract management software available, a number of companies continue to rely on manual methods and hesitate toward moving over to an automated system. Concerns over the price tag of contract management software, the time it takes to implement, and lack of system adoption tends to leave businesses stalled and stymied.
Unfortunately, an inability or unwillingness to make the switch to a software solution means that the already complicated task of managing a contract portfolio is even more difficult.
The primary problem associated with a poor contract management process is overall inefficiency, which inevitably leads to additional expenditures. This inefficiency is likely the culmination of a series of smaller problems associated with a poor management approach. Unclear goals and expectations, poor communication, redundancy, and convoluted compliance matters are all contributing factors.
Signs You Need Contract Management Software
A common problem for businesses is knowing when to take the plunge and invest in contract management software. For some companies, it may make sense to invest in a contract management solution despite overseeing a small batch of contracts if those contracts are of significant value, have a long duration, or contain many important deadlines. In those instances, it would be unwise to rely on a manual system, as important matters are far more likely to get lost in the shuffle.
So how do you decide if you need contract management software? Begin by looking at the types of contract you are handling. Do they contain significant value for your organization? Are they of long duration or include important milestones or deadlines? Next assess the status of your repository and determine how many contracts you have and what your person-to-contract ratio is. This will help you decide if you are efficiently using your resources of if a contract management solution can help you do more with less.
Making Your Choice
Once you decide you are ready to take the plunge into the fantastic and varied world of contract management software, you could suddenly feel overwhelmed by all the possibilities. Don’t worry, we’ve got you covered! Check out our Buyer’s Guide to Contract Management Software and get some strategies that will help you choose the right solution. You’ll learn how to assess your current contract management strategy, how to determine you contract management needs, and discover what selection best practices will help you find the perfect solution.