Every successful company effectively manages how business is conducted with its partners, customers and suppliers. This is best handled with efficient processes by using contract tracking software. Bottom-line revenue is directly linked to how well – or poorly – sales contracts are managed.
Reduce Risk of Errors
Typically, contracts are manually handled, which can lead to a bottleneck in contract cycles and human error. Control over the process is limited because some employees might create their own shortcuts separate from standard procedures. Not only does this create uncertainty about how contracts are managed, but it greatly reduces performance visibility and leaves your company vulnerable to more errors.
Tracking the process with a software system can help your company mitigate bottlenecks and risks with improvements to visibility and control. The entire process, from contract creation to fulfillment, is managed better. All steps in the process are captured electronically with notifications and alerts if a problem arises.
Manage Contract Obligations
The many obligations that your company agrees to come with processes and questions that should be properly managed to ensure those obligations are met. Some agreements include attachments that will need to be referenced from time to time. Additionally, adhering to business rules when creating a contract can be troublesome if the person involved is unfamiliar or forgets. An automated system encompasses the entire lifecycle of a contract and can include pre-determined clauses specific to your industry and region.
Automate Contract Compliance
Unless your company has an automated process, a considerable gap could exist between your ERP solution and CRM opportunities. Many companies find themselves struggling with the chasm this causes in financial transactions, which can lead to compliance issues.
Compliance is essential to ensuring no deadlines are missed. In addition, automating the contract process helps to ensure what you expect and what was negotiated is favorable to your business goals.
This is particularly useful if your company does business with government agencies. Contracts that meet industry and governmental compliance requirements can determine if you are consistently awarded the contract when it is time to renew.
While planning to implement a new software program to track the contract process, make sure the system matches the needs of all stakeholders. Make sure everyone who will use the system understands what this change can mean for the company and their role. Ask questions and provide answers so that everyone is informed and the data that will be used is available for a smooth process.