Today’s corporate world has advanced in so many ways; this is due to the rise of technological advances in the market trends. Businesses that involve the service through contracts have also benefited from modern technology. Contracts, in general, used to be very tiring due to the lengthy processes before a contract is completed. A manual contract that is handwritten on paper could take a lot of time and resources from the company before approval. The long, tedious process slows down a company’s operations that rely on contractual jobs. It has now become a thing of the past from the advancement of contract management software that enabled companies to handle their entire contract job. The contract management software links all the interested parties to form an agreeable contract that benefits them. There are various examples of arrangements that happen within interested parties; some of the contracts are;
- Service agreement contract
- Sale contract
- The contract between an employer and the employees
- License contracts
Users of the contract management software
Contract management software is mainly used in businesses that involve services or operate through contracts; it is software that enables personnel in a company to conduct their work without hustles and speeds up contract management operations. This management software handles the entire process of contract issuance. Contract management software is used by different personnel in a company, mostly by the organization’s human resource managers whose role in an organization is to deal with the company’s daily activities, including the people at large. They are liable to bring on broad suppliers critical in every business. The procurement department also uses the contract management system to deal with all the company’s external dealing that benefits the company’s growth. The contract manager’s role is to administer agreements looking for the best offers from the qualified supplier who provide the needed products or services.
Contract management software features
Contract management software comes with different market features, and different programming companies have different features that represent their brands. Every company that develops this software wants to be the best in the market, so there are regular upgrades of different versions. Before purchasing this software and installing it in your systems, it is wise first to identify the features that suit your operations. There is software programmed to handle all companies’ levels, from small to large companies. Once the company has decided to purchase a contract management software, here are the key features to look out for;
- The software must have unlimited archive space to store all the data
- The software must have a specification for an unlimited number of users to enable it to handle as many suppliers as possible.
- Speedy search automation ability
- The software should have an allowance for bulk messaging and emailing.
- The software uses simple, clear language that all parties can understand with ease
- The software should be simple to navigate through to allow entry to all users/
- They should have a security feature allowing for passwords before navigating through.
After the company has identified the type of contract management software they deserve, getting suppliers can now begin. The contract has to pass through various stages before it is fully approved. The multiple stages have processes in each phase, and they are agreed upon for qualifications accepted in the contract by the involved parties.
Phases of contract management software
There are main stages that a contract must go through with the introduction of the contract management software. Most of the stages have been made easy and fast compared to the manual contract management services, where contract phases used to take so long, leaving the suppliers with no other option but to wait for the long periods. The contract management has to go through the following phases before it is issued to the supplier;
- Planning phase: The planning stage brings together the management and the company’s critical stakeholders to decide on what will be terms of the contract that will both suit the supplier and the company.
- The implementation phase: once the management and the stakeholders have come up with a desirable plan
- The details are then fed to the contract management software, which saves the details in templates such that when a need arises, the management does not have to meet again to discuss; rather, they will generate it from the system. The implementation stage is fast due to the contract’s software management program’s involvement. In the implementation stage, the supplier’s terms are also heard, and negotiations are welcomed between the parties to reach a better deal that both parties will celebrate. Through its advancement, the contract management software offers possible predictions of how the negotiations will turn out to be, giving the company a negotiating stand.
- Contract delivery stage: once the terms have been agreed on, the company proceeds to issue the contract to the suitable supplier chosen by the contract management software. Approvals are done on the software system, and the contract is ready to be signed. Contract management software allows for e-signing; the supplier does not have to present themselves to the organization physically; they can sign through the system and upload the final document, which is fully signed.
- Contract renewal stage: the contract management software takes through the contract services from the inception to the completion of the entire process. The software does not stop at that; it keeps records and data of all the suppliers, ensuring it alerts all the departments involved with set reminders on the contracts that need renewal and the ones that need to be done away with. This element gives the supplier a sense of confidence with the company they are with, encouraging compliance on both ends.
In conclusion, contract management software greatly benefits all the parties involved. Some of these benefits experienced are;
- High standards of compliance.
- There are reduced contract disputes between parties.
- Less approval duration for the contracts
- Up to date alerts on renewal and expiry of contracts
- Maximization of financial benefits.
- The scalability and functionality of the contract are optimal.
- Easy tracking and audit services