Updated: Apr 28, 2022
Contracts are the groundlaying structure of every legal relationship. Businesses need to manage thousands of contracts such as partnership agreements, non-disclosure agreements, property and equipment leases, bills of sales, employment agreements, etc.
Simultaneously managing multiple contracts gets extremely difficult. Thus, an effective contract management process is crucial, it holds the power to make or break your entire business.
Here are some of the challenges of poor contract management!
● Difficulty in locating contracts.
● Lack of visibility.
● Missed renewal dates.
● Wastage of valuable time.
● Uncertain business outcomes.
According to IACCM’s research, on average, an enterprise loses around 9.2% of annual revenue due to weak contract management.
The solution for better management of contracts is a centralized and digital contract repository. Because it not only digitalizes all the contracts but also makes them accessible centrally to all the teams involved.
Here are the 4 benefits of a Centralized & Digital Contract Repository:
1. Easy Access to all the Contracts
A centralized and digitalized contract repository enables easy searches within a database giving quick access to all the contracts in a single place. It allows the enterprises to know the recent status of the contract, track different contract versions and keep the stakeholders in the loop for effective negotiations.
Furthermore, having all the contracts at one-click access allows businesses to perform accurate audit trails for compliance purposes.
2. Version Control
A digital and centralized contract repository provides a way for businesses to keep track of multiple contract versions in an efficient manner.
This prevents the team from working on an outdated version of the document. Teams can easily track, compare and make changes to various versions of the contracts and finalize one to send it to the stakeholders. Having the latest version of the contract allows the business to manage amendments and addenda easily.
3. Streamlines Contract Approvals
A centralized and digitalized contract repository simplifies and accelerates the creation, reviews, and negotiation process. An effective cloud-based contract management platform makes collaboration effortless through multiple features of highlighting and redlining the errors in the contract.
Businesses thus don't have to wait for months or go back and forth for all the parties to agree upon the final contract. Contract workflow platforms with a central repository enables stakeholders to approve a contract from anywhere, anytime, with an internet-enabled device.
4. Cloud-based security
The digital and centralized contract repository ensures the confidentiality of crucial contract data through cloud-based encryption. It provides role-based access controls to restrict unauthorized access to sensitive information. Teams can define who has the authority to view, edit, or comment on the contracts.
In addition, business gets an assurance that their data won't be leaked or hacked, as the data is not sent through email, shared drives or spreadsheet-based approach.
A digitalized and centralized contract workflow platform directly saves enterprises time which they can invest in high-value work. Effective implementation of digitalized and centralized repository also offers the business good ROI and prevents them from financial loss.
InkPaper is a contract workflow and e-signature platform that enables you to have an efficient contract management system. From authoring the contract to the execution and storing the contract securely on the cloud, InkPaper helps you manage the workflow efficiently.
Get started with InkPaper today!