Everybody knows contracts are substantial or even fundamental. They contain essential and vital agreements and will influence the relationship between partners, providers, customers and employees. Large organizations have thousands of contracts. The more contracts exist, the harder it gets to manage. It is already a challenge knowing where they are and who is responsible. This is one of the reasons to work with Contract Management Software.
Most stakeholders know that their organization needs better contract management. Some components indicate organizations have trouble finding their contracts and handling the subsequent actions and decisions. Some of these elements are:
This is certainly not a complete list, but merely everyday things businesses have trouble with. Yet all of these matters have an enormous influence on the performance of an organization. And they go far beyond the obvious measurable results in a contract. Some effects might not be immediately measurable but are significant anyhow. Having an up-to-date overview of solely end dates and receiving timely notifications is an excellent start.
It is evident that a contract is a snapshot. Somewhere in the past a decision was made and written down in a contract. The question usually remains whether the content is still active. Your organization has been growing too. At the moment of signing, most contracts mention commitments for the future. Thus, it is desired to be informed about these agreements, what it says, and what you have to decide or do.
At the very least Contract Management Software has to inform at the right time and alarm the stakeholder about a written agreement that might influence the organization (strategical, tactical and/or operational) and what this influence could be. So, it is crucial that contract management software notifies the stakeholder without asking. Moreover, it creates a central storage wherein all contractual information is accessible whenever it is needed (for example after being notified). A necessity for taking the correct decision or deploying the right procedure.