Contracts are indispensable for every company. They contain data that is crucial for value creation and legal certainty. Effective contract management reduces business risks, improves collaboration with stakeholders and ensures that all terms and agreements are clear and understandable. With the right tools, companies can improve their operational efficiency and adapt more easily to market changes.
Are you still managing contracts manually?
Traditional contract management, which relies on manual and paper-based processes, presents numerous challenges and inefficiencies that can have a negative impact on business operations. Manual processes tend to be time-consuming and error-prone, making contract processing less effective. The lack of a centralized contract storage system means that documents are often scattered across different departments and formats, making them difficult to find and control. Without adequate traceability, it is difficult to monitor changes and versions of contracts, increasing the risk of litigation and non-compliance Inadequate tracking of important deadlines, such as renewal or termination dates, can lead to missed opportunities or financial penalties.
Challenges of traditional contract management
Lengthy processes
Manual contract management involves numerous administrative tasks that take a lot of time and increase the risk of errors.
Lack of traceability and control
Scattered paper contracts can get lost or damaged, making it difficult to track changes and versions.
Document search problems
Contracts stored in different locations and in different formats make it difficult to quickly access and locate documents.
High costs
Manual processes are unproductive and expensive and impact profitability.
71% of companies can't find 10% or more of their contracts. Lost contracts can cost a lot of money as they can lead to penalties, missed contract renewals and other revenue-reducing measures.
Source: The Journal of Contract Management
Why is the digitization of contract processes so important?
Using digital business solutions for contract management streamlines every step of the contract process, including drafting, negotiating, signing and renewing. Automation reduces errors, speeds up decision-making and improves collaboration. Tracking contracts in real time provides insights into performance, regulatory compliance and risk, helping organizations make smarter decisions.
The key benefits of using business solutions for contract management
Accelerated sales cycles
Digital solutions allow multiple users to review contracts simultaneously and speed up the process from draft to signature. This shortens sales cycles and improves responsiveness to market demands.
Research by Forrester and Aberdeen shows that it typically takes 3.4 weeks to approve a contract. With digital contract management solutions, this time can be reduced by an average of 82%.
Faster information exchange and improved collaboration
Electronic management enables comments and information to be exchanged quickly, saving time and allowing greater flexibility in communicating necessary contract changes. This improves collaboration between different departments and stakeholders within the company.
Improved compliance and risk mitigation
Digital solutions help companies manage contractual obligations, deadlines and renewals, reducing the risk of non-compliance and associated penalties or legal issues. Predefined user rights and audit trails ensure that all data is stored securely and protected against unauthorized changes. This means that all changes and access to contracts can be tracked precisely.
Better visibility and control with centralized storage
Centralized storage allows easier access to all relevant documents and information, reducing the risk of document loss and the risk of business errors and litigation.
Cost savings and optimization
Automating contract management reduces administrative costs. In addition, minimizing errors and improving efficiency can increase profitability.
The administrative costs associated with contracts can be reduced by 25-30% through automation.
Source: Gatekeeper
How the InDoc EDGE solution streamlines contract management
The InDoc EDGE digital contract management solution supports all phases of the contract lifecycle. It enables easy creation or receipt of drafts, coordination of content, approval and electronic signature, distribution, management of amendments and attachments, and legally compliant electronic filing. These features are designed to be simple, transparent and traceable, automating and streamlining every step of the process to improve efficiency, security and compliance with legal requirements.
Drafting or receiving a contract
The process of contract management begins with the entry of a draft received from a partner or the creation of a new draft in the system, e.g. in InDoc EDGE. At this stage, you add the necessary metadata for storage, retrieval and tracking in the system.
Review and content coordination
The prepared contract goes through a review and coordination process in which several reviewers check the content and suggest changes. This is done in a predetermined order based on business rules to ensure efficiency and compliance.
Approval and electronic signature
Once the contract is reviewed and coordinated, it enters the approval phase, which can be sequential or parallel. The contract is then submitted to the signatories for electronic signature, or arranged for physical signature.
Compliant electronic storage
The signed contract, together with all amendments and attachments, is stored in the certified InDoc EDGE e-storage system. It is securely accessible and traceable with all necessary metadata to ensure compliance with legal requirements.