The world of business is operating faster and faster everyday. Yet, many organisations struggle with a fundamental problem that can severely impact their operations: the fragmented storage of contracts. Contracts are the backbone of business operations, governing relationships, obligations, and expectations between companies, clients, vendors, and partners. When these vital documents are scattered across multiple locations—whether in physical files, various digital folders, or individual email accounts—teams face significant challenges in accessing, managing, and utilizing them effectively. This fragmentation not only hinders operational efficiency but also increases the risk of costly errors.
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.
Visibility, Accessibility, & You
In this blog post, we'll explore the pain points associated with decentralised contract storage and highlight how a Contract Lifecycle Management (CLM) system can be a game-changer for your organisation. By centralising all your contracts in one easily accessible location, a CLM system enhances visibility, streamlines access, and ensures your team can find crucial information in seconds.
The Problem With Decentralised Contract Storage
Decentralised contract storage is a common issue in many organisations, especially those with large teams or multiple departments. Contracts may be stored in various locations such as:
Physical filing cabinets: In many companies, especially those that have been around for decades, a significant portion of contracts might still be in paper form. These contracts are often stored in filing cabinets, which are not only cumbersome to search through but are also vulnerable to loss, damage, or misplacement.
Digital folders: Contracts that have been digitised or are created electronically are often stored in multiple digital locations. These can include shared drives, department-specific folders, or individual team members' computers. This spread of information can make it difficult to know where a contract is stored, let alone access it quickly when needed.
Email accounts: In some cases, contracts are stored in individual email accounts. A contract might be sent to a team member for review, and the final signed version remains buried in their inbox. This method of storage is particularly problematic because it relies on the individual's ability to organise and retrieve the document, which can lead to inefficiencies and delays.
The fragmentation of contract storage presents several critical issues:
Difficulty in locating contracts: When contracts are spread across multiple locations, finding a specific contract or piece of information can be like searching for a needle in a haystack. This can be especially problematic when quick access is required for decision-making, compliance audits, or legal disputes.
Increased risk of errors: The more dispersed your contracts are, the higher the likelihood of mistakes. For example, different versions of a contract might exist in different places, leading to confusion about which one is the most current. Additionally, important deadlines, such as renewal or termination dates, can be missed if contracts are not managed in a centralised manner.
Lack of transparency and accountability: When contracts are stored in multiple locations, it can be challenging to track who has access to what, who is responsible for which contracts, and whether any actions are required. This lack of visibility can lead to lapses in contract management, which in turn can result in compliance issues or financial losses.
Inefficient use of time: Teams can spend an inordinate amount of time searching for contracts or information within contracts. This inefficiency not only wastes valuable time but also slows down business processes, leading to delays in project execution and decision-making.
The Solution: Centralised Contract Management With A CLM System
To overcome these challenges, more and more organisations are turning to Contract Lifecycle Management (CLM) systems. A CLM system centralises all contracts in a single, easily accessible location, offering a multitude of benefits that address the pain points of decentralised contract storage.
Enhanced Visibility and Transparency
One of the most significant advantages of a CLM system is the visibility it provides. All contracts are stored in a centralised repository, making it easy for authorised users to access them from anywhere. This level of transparency ensures that key stakeholders can quickly find the information they need, whether they are in the office or working remotely. The system also allows for easy tracking of contract status, enabling users to see which contracts are active, pending, or expired at a glance.
Streamlined Access and Searchability
A CLM system's centralised storage means that contracts are organised in a logical and consistent manner. Advanced search functionalities allow users to locate specific contracts or even specific clauses within contracts in seconds. This is a significant improvement over manually sifting through physical files or searching through digital folders and email accounts. The ability to quickly retrieve contracts not only saves time but also ensures that critical information is always at your fingertips.
Improved Version Control and Error Reduction
With a CLM system, you can be confident that everyone is working from the same version of a contract. The system tracks all changes and updates, ensuring that the most current version is always available. This eliminates the confusion and potential errors that can arise from having multiple versions of a contract stored in different places. Additionally, automated reminders for key dates and deadlines help ensure that nothing falls through the cracks.
Increased Efficiency and Productivity
By centralising contract storage and management, a CLM system significantly reduces the time spent on administrative tasks. Teams can quickly find the contracts they need, allowing them to focus on more strategic activities. Moreover, the system can automate many aspects of contract management, such as approvals, renewals, and reporting, further enhancing productivity.
Better Compliance and Risk Management
A CLM system helps ensure that your organisation remains compliant with legal and regulatory requirements. Centralised storage makes it easier to conduct audits and ensures that all contracts are stored securely and are accessible only to authorised users. The system can also alert you to potential risks, such as upcoming renewal deadlines or non-compliance with contract terms, allowing you to take proactive measures.
The Case for Centralised Contract Management
The challenges associated with decentralised contract storage are significant, but they are not insurmountable. SaaSam is a recognised partner of Agiloft and we have been leveraging Agiloft’s no-code CLM platform for 12+ years. By implementing an Agiloft Contract Lifecycle Management (CLM) system, you can centralise all your contracts in one easily accessible location, enhancing visibility, streamlining access, and ensuring your team can find crucial information in seconds. The benefits of the Agiloft CLM system—improved efficiency, reduced errors, increased transparency, and better compliance—make it an essential tool for any organisation looking to optimise its contract management processes.
When time is money and precision is paramount, a CLM system can provide the competitive advantage your organisation needs. Don’t let fragmented contract storage hold your business back - contact us and let us help turn your contracts from problems into assets.
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.
Written by Calum Johnstone
