9 Signs You Need a Contract Tracking Software Solution
Mar 6th, 2024
9 Signs You Need a Contract Tracking Software Solution
Effective contract management is vital to your business’s success. It influences everything from financial stability to legal adherence. Contract tracking software enhances this process by offering a system to store, organize, and oversee contracts throughout their lifecycle.
Contract tracking software ensures your business meets crucial deadlines, adheres to contract stipulations, and improves negotiation outcomes. On average, improved contract oversight via software cuts costs by 2% annually and accelerates negotiation cycles by 50%. The right system empowers companies to command their contract portfolios—boosting operational efficiency and mitigating risk. This guide highlights the signs that your company needs contract tracking software.
Key Takeaways
- Contract tracking software centralizes data, increasing accessibility and decision-making speed for enhanced productivity and operational efficiency.
- Automation of contract reminders and compliance checks by contract tracking software mitigates financial and legal risk.
- Comprehensive reporting and analytics from contract tracking software provide data-driven insights to inform strategic decisions, optimizing contract management and performance.
😉 Bonus: Check out our Ultimate Guide to Minimizing Risk with Effective Contract Management.
Signs It’s Time to Implement Contract Tracking Software
If your business experiences any of these issues, it’s time to implement contract tracking software.
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Difficulty Locating Contracts
If finding contracts in your business is a scramble, you’re not alone. Only 22% of polled organizations can locate contracts on short notice. This disorganization hampers swift decision-making. Contract tracking software solves this by establishing an accessible, centralized database, almost eliminating time spent on document searches and boosting productivity.
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Missed Deadlines
Missing contract deadlines is a common issue with serious repercussions, including financial losses and damaged business relationships. Contract tracking software addresses this by setting automated alerts for upcoming deadlines and renewals, ensuring you’re always ahead of your obligations.
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Compliance Challenges
Staying compliant with current laws and regulations is a critical aspect of contract management that many businesses struggle with. Inefficient processes and a lack of oversight can result in non-compliance, leading to legal penalties and reputational damage. Contract tracking software supports compliance by ensuring adherence to standards, helping you stay ahead of potential legal or reputational consequences.
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Inefficient Contract Lifecycle Management
Image Source: https://commons.wikimedia.org/wiki/File:Contract_Lifecycle_Management.jpg
If the stages from contract initiation to renewal drag on, it can increase cycle times and costs. Studies indicate a cut in cycle times by up to 19% when utilizing contract tracking software. Streamlining with contract tracking software improves speed and agility, allowing your business to pivot swiftly and seize new market opportunities.
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Lack of Centralized Contract Oversight
Operating without a unified contract management system hampers visibility. It can lead to unmet obligations and missed renewals. Contract tracking software provides comprehensive oversight, giving you the capability to monitor all contracts in one place, which is crucial for effective risk management and strategic decision-making.
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Manual Processes Overload
If your team is bogged down by manual tasks such as data entry and reporting, they’re likely to make more preventable errors. Contract tracking software automates these processes, enhancing accuracy and operational efficiency, by reducing cycle times and freeing your team for higher-level work.
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Poor Collaboration and Version Control
Image Source: https://www.geeksforgeeks.org/version-control-systems/
Contract drafting often suffers when team collaboration is hindered by poor communication and lacks a unified platform for document management. As a result, multiple versions of the same contract can circulate among team members without a clear indication of the most current or approved version.
This confusion can lead to errors in the final agreement, as users may overlook or incorrectly incorporate revisions. Contract tracking software with version control centralizes documents, ensuring everyone works on the latest draft, and tracks changes effectively.
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Inadequate Reporting and Analytics
Without powerful reporting and analytics, businesses miss out on optimizing contracts and spotting compliance issues. This limitation stems from an inability to:
- Analyze contract data
- Identify trends
- Monitor key performance indicators
As a result, opportunities for optimizing contract terms or identifying non-compliance issues may go unnoticed. Contract tracking software can address these challenges by offering comprehensive reporting and analytics capabilities. Such tools enable organizations to generate detailed reports on various aspects of their contracts, facilitating better strategic planning, risk management, and compliance monitoring.
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Limited Access to Contract Information
Limited access to contract information for authorized users hinders the ability of team members to perform their duties effectively. This challenge often arises when organizations that store contracts across disparate systems or physical locations, making it cumbersome to retrieve necessary documents promptly.
The lack of readily accessible contract information can delay decision-making, impede customer service, and affect the overall efficiency of contract management processes. Contract tracking software centralizes storage and allows role-based access, ensuring that authorized personnel can swiftly retrieve and utilize contract data, streamlining management and decision-making.
Maximize Contract Management with Contract Logix
Leverage Contract Logix’s advanced features such as automated reminders, tailored workflows, and AI-powered Data Extraction. With these tools, your business can manage contracts more effectively, ensuring maximum value.
Discover the full capabilities of Contract Logix. Request a demo today.
Looking for more articles about Contract Management? Check out our previous article “What to Consider When Negotiating SaaS Contracts“.
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