According to World Commerce and Contracting, “40-60% of business transactions are governed by written contractual agreements”. However, Thomson Reuters estimated that ONLY 18% of companies in the UK have implemented contract management technology to manage this vital organisational process (report from 2022).
This blog series explores the top pains points, key benefits and practical tips for optimising your processes, enhancing compliance, and driving business growth through a streamlined, scalable, and automated contract lifecycle management solution.
In the modern business landscape, managing contracts efficiently is critical for success. Contracts form the foundation of business relationships, outlining the terms and conditions of deals, partnerships, and obligations. However, handling numerous contracts manually is not only time-consuming but also prone to errors. This is where contract management software comes into play.
But what exactly is contract management software, and how can it transform your business processes? This blog aims to provide a clear, detailed understanding of contract management software, its key features, benefits, and why it's essential for organisations of all sizes.
What is Contract Management Software?
Contract management software is a digital tool designed to automate, streamline, and enhance the lifecycle of contracts within an organisation. From creation to execution, and finally to renewal or termination, the software helps businesses handle every aspect of contract management.
A contract typically goes through several stages, including drafting, negotiation, approval, execution, storage, and renewal. Each of these stages comes with its own set of challenges, and the complexity increases with the volume of contracts. A contract management solution centralises these tasks, offering a user-friendly platform that simplifies the process.
Key Features of Contract Management Software
Contract management software provides a broad range of features designed to manage the entire contract lifecycle. Here are some of the most notable capabilities:
Contract Creation and Authoring: The software provides templates and pre-approved clauses that help streamline the contract creation process. With contract management software, legal teams can create contracts quickly, ensuring they meet regulatory and company standards without starting from scratch.
Contract Storage and Organisation: Managing contracts in physical form or scattered across different systems makes it difficult to track them. Contract management software provides a centralised repository where all contracts are stored in an organised, searchable database, ensuring easy access whenever needed.
Approval Workflow Automation: The approval process is often where delays occur, particularly when multiple stakeholders need to sign off on a contract. Contract management tools enable automated workflows that route contracts through appropriate channels for review and approval, significantly speeding up the process.
Version Control and Auditing: Contracts often go through multiple revisions during negotiation. A robust contract management system keeps track of every version, ensuring the most recent and correct version is being worked on. It also offers a complete audit trail to help identify who made what changes and when.
Compliance Management: Many industries face strict compliance regulations. Contract management software ensures all contracts adhere to local, national, or industry-specific regulations by integrating compliance checks and alerts into the contract creation and approval process.
Electronic Signatures: With electronic signature integrations, contracts can be signed and executed remotely, reducing delays caused by the need for in-person signatures. This is especially useful for businesses with a geographically dispersed workforce or clientele.
Renewal and Expiry Alerts: Contracts typically have renewal dates or expiration terms. Missing these key dates can lead to missed opportunities or penalties. Contract management software provides automated alerts for upcoming renewals or expirations, ensuring businesses can act proactively.
Analytics and Reporting: Data-driven decision-making is essential in today’s business environment. Contract management software provides analytics and reporting tools that allow businesses to gain insights into contract performance, risk factors, and contract cycle times. This data can then be used to optimise future contracts and negotiations.
Benefits of Contract Management Software
Now that we understand the features, let’s dive into the specific benefits this software offers to businesses.
Increased Efficiency: The manual contract management process is labour-intensive and time-consuming. With automation, the entire process is accelerated, allowing teams to focus on high-value tasks rather than administrative duties.
Risk Mitigation: A centralised system reduces the risk of contract mismanagement. With real-time access to contracts, businesses can identify potential risks or discrepancies early on, preventing costly legal disputes or compliance issues.
Improved Collaboration: Contract management software enables seamless collaboration among various departments, from legal and finance to sales and procurement. By offering a transparent platform where all stakeholders can work on the same contract, it fosters better communication and faster approval cycles.
Cost Savings: By streamlining the contract process, reducing errors, and improving compliance, businesses can save on operational costs. The software also reduces the chances of penalties related to missed deadlines, non-compliance, or contract breaches.
Enhanced Contract Visibility: With the ability to search, filter, and access contracts from a central repository, businesses have full visibility into their contractual obligations. This enables proactive management, ensuring that no critical milestones are overlooked.
Better Compliance: The software helps maintain compliance by providing features like clause libraries, automated checks, and audit trails. This not only ensures contracts align with regulatory requirements but also minimises the risk of legal disputes.
Scalability: Contract management software is scalable to meet the growing needs of a business. Whether you’re handling dozens of contracts or thousands, the system adapts to manage increased contract volume without sacrificing efficiency.
Why Your Business Needs Contract Management Software
In a competitive business environment, inefficiencies in contract management can lead to lost opportunities, increased risk, and costly mistakes. Contract management software addresses these challenges by providing an organised, automated, and secure way to manage contracts.
For businesses that deal with a high volume of contracts—such as legal firms, procurement departments, and companies in highly regulated industries—the software becomes not just a convenience but a necessity. The ability to streamline contract workflows, mitigate risks, and ensure compliance makes contract management software an invaluable tool for modern organisations.
In conclusion, contract management software is more than just a digital filing cabinet. It’s a comprehensive solution that automates and optimises the entire contract lifecycle, helping businesses save time, reduce risk, and ensure better compliance. By adopting contract management software, your business can turn contracts from a potential liability into a strategic asset.
Ready to take the next step in your digital transformation? Let SaaSam help you implement the Agiloft Contract Lifecycle Management software tailored to your business goals.
About SaaSam
SaaSam is a global software consulting and implementation provider, with a proud association and history of delivering solutions through software. SaaSam has been leveraging some of the world’s most innovative no-code and low-code software platforms that empower our customers to drive business outcomes.
SaaSam is headquartered in Cambridge, New Zealand. We have a team of 26 expert employees spread across five company offices in New Zealand, Australia, the United Kingdom, the European Union (Ireland), and the United States. SaaSam has long-standing relationships with a diverse range of successful organisations across the following industries: IT and Telecommunications, Finance and Banking, Primary Industries, Pharmaceuticals and Biotechnology, Utilities, Government bodies and many others.
Our culture, driven by values of Integrity, Innovation, Commitment, Passion, and Accountability, embodies the Kiwi spirit.
