Why Do Companies Require Software to Manage Contracts?
The average Global 1000 corporation maintains over 40,000 active contracts, most of which are still managed in a traditional manual method. However, approximately 25% of Global 2000 companies have implemented some form of contract management software to help manage corporate contracts. Whether it’s digital transformation, the need to reduce risk, stop missing obligations, increase security, or something else, there are a number reasons to use software to manage contracts.
Contract management software automates the contracting process from contract creation and negotiation through monitoring, compliance and renewal. The solutions typically maintain a warehouse or central repository of corporate contracts improving a company’s access, visibility and control over contacts. Most solutions also offer the ability to warehouse standard contract and business terms and conditions and template contracts as well.
Research has demonstrated that contract management software allow companies to better realize savings achieved during procurement negotiations and procurement spending, improve sales effectiveness, and increase compliance by allowing contracts to drive day-to-day operations.
Almost every company maintains active contracts and can benefit from software to help track and manage them. Today, there are many solutions in the marketplace, however; it is recommended organizations look at more robust, yet easy-to-use systems. Most contract management software vendors offer free demos, consultations, and even trials to help you make the best selection.