By | Pavan CH
The rapidly evolving technology has revolutionized businesses across the world. By introducing technology in business processes, companies transform themselves into global leaders.
Companies can digitally transform their business processes with the right tools, from payroll systems to legal procedures. If your business is still manually managing all your business’s essential contracts, that is a recipe for disaster.
Regardless of its size, every business should have proper contract lifecycle management software in place, since poor management of contracts can lead to more troubles down the line.
Every business needs to understand the downsides of handling contracts manually. That’s why here are five reasons why companies should avoid manual contract management. Here’s a look at them.
Manual contracts are difficult to manage, store and locate.
Every business has multiple departments to perform different business processes like sales, marketing, legal, human resources, administration, etc. All these departments have different contracts. The legal and compliance department drafts and organizes all the business contracts in the company.
With so many contracts and their revisions, validities, termination, and renewals, it becomes challenging to store, manage manually, and locate all these contracts. All of this complexity can increase the possibility of errors. Any misplaced or wrongly drafted agreement can put your business in jeopardy. That’s why every business should avoid manually managing their contracts.
Manual contracts management can be confusing.
As the legal department simultaneously works on all the business contracts from various company departments, there is a strong possibility of confusion and mishaps.
For example, if the HR manager wants to renew an employee’s contract from the software development team, but the legal team mistakenly renews an employee’s contract from the software testing team, it can lead to many legal and financial problems.
Manual contracts management is time-consuming.
In bigger organizations with hundreds of employees and numerous departments, managing all the contracts can be challenging. Finding a specific contract from the vast number of manually stored contacts is like searching for a needle in a stack of hay. It will take a lot of time and effort to locate the document and all of its revisions.
Manual signatures cause delays.
There are different stakeholders involved in a single contract, and each contract needs multiple approval signatures from each stakeholder. When there is a massive number of such contracts, it will take a lot of time to take all those signatures of approvals. If a concerned person is on leave or busy in a meeting, it leads to additional delays in the contract process.
The latest contract lifecycle management software has provisions to digitally sign the documents, avoiding all the headaches related to manual signatures.
It’s challenging to find the bottlenecks in manual contracts.
Tracking or locating paper contracts can be difficult, especially when there are hundreds of active contracts in a company. It is almost impossible to find a bottleneck or loophole in a contract by manually reading all contracts between different stakeholders.
A simple contract lifecycle management software has all the contract documents stored on its platform, so you can easily find issues within a few seconds.
These are the five reasons why every company should avoid using manual contract management and switch to a digital alternative like CLM software to manage, store, analyze and review their business contracts.