5 Reasons Why Business Should Use Contract Management Software in 2021

Inquirer Los Angeles / 05:32 PM February 01, 2021

It doesn’t matter what business you are in, how big your organization is, or where it is located… all businesses have one thing in common, and it’s that contracts are an essential part of daily operations.

Without contracts, entire companies would cease to exist. Knowing this, it’s even more surprising that many businesses have yet to implement contract management software for their contract management.

And, as you’ll learn in this article, this software is the key to business development and prosperity especially in the year 2021!

Contract Management & Coronavirus

As of January 2021, it is nearly a year that the world has been dealing with the tragic and devastating effects of COVID-19.

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The pandemic continues to destroy entire sectors, industries, and even regions… and it shows no sign of slowing down as we roll into the New Year. As we’ve seen recently, the landscape of commerce has been shaken up and is hardly recognizable from what it was before all this happened.

Now, the work-from-home model has become an extremely popular way for small businesses and big corporations alike to continue operating despite the virus and quarantine orders. Besides working from home, organizations have had to adapt and ‘restructure’ certain processes. This is in order to try and mitigate the debilitating effects this pandemic has had.

For example, many restaurants have been able to continue operating by setting up outdoor seating. Product-based businesses have resorted to exclusively selling online (and, as we’ve seen, the eCommerce space has absolutely exploded).

All that said, the pandemic has also affected another major component of business – contract management.

How Has the Pandemic Affected the Contracting and Negotiation Process?

The pandemic has rendered the traditional contracting and negotiation process almost useless.

Although it really depends on the industry, geographical location, type of business, and other factors, the point stands – contract management software is no longer a luxury, it is now a necessity. Therefore, it is critical to know contract management tools like Parley Pro to save your contract negotiation process today.

Why Is Contract Management Software Necessary?

Before, involved parties in a contract would have to work together closely to draft the new legal document.

Then, they would submit to a series of negotiations about certain parts and clauses within the contract – while this could certainly take place over the phone or online, more complex (and more important) contracts would usually be discussed in person.

And, finally, the contract would have to be signed by hand. This could mean large meetings and travel, both of which are not feasible today.

Now, businesses must protect others as well as their own employees. Hosting negotiation meetings and in-person contract signings is simply not an option.

Although certain business processes are absolutely necessary to take place in person, contracting and negotiating does not require person-to-person physical contact. This is because contract management software is widely available for any business willing to implement it.

Why Business Should Use Contract Management Software in 2021

There are many reasons why businesses should use contract management software.

However, in light of the coronavirus pandemic, the main reasons businesses should use contract management software in 2021 are as follows:

Streamlined Workflow

Now that businesses are generally in a period of change that requires extra efforts to solve new problems, it is not a time to have to spend hours just to get a contract signed.

With contract management software, the entire contract lifecycle – from creation to signing – is of streamlining and automation.

For example, legal documents can be created with just a few clicks. Users are of alert when an action is required of them, and signing can be done from just a computer.

Remote Contract Negotiation and Signing

Contract management software allows businesses the ability to negotiate and sign contracts remotely.

Each user can make edits or add extra text to contracts from their own computer. And, every user can sign the contract on their own time, from their own location.

During a pandemic, this is a feature that is absolutely essential.

Central Repository

Security and the ability to retrieve contracts are two issues with the traditional contract management process.

However, with contract management software, all of an organization’s contracts are stored within a password-protected online database.

This not only means that this sensitive information is protected. It also means any contract can be viewed or analyzed from just a computer… no need to come into the office.

Enhanced Compliance

With the financial burden and economic distress caused by COVID-19, no business needs to be ‘hit’ with fees or fines for failing to meet legal obligations.

Contract management software makes it easy for users to keep track of their various obligations, spanning many different contracts over a wide span of time – this is not possible with traditional contract management techniques.

Not only that, but the software makes it physically impossible to draft a contract that violates relevant legal clauses. This ensures that every published contract is 100% legally valid.

Automated Alerts

Contract management software can be customized to ‘alert’ users when certain contracts are about to expire.

This means no extra effort needs to be of extension just to keep track of when contracts need to be of renewal, which means no time or resources spent just because a contract unknowingly went out-of-date.

Considering the many new tasks that organizations have to manage in these troubling times, automated alerts help make managing contracts that much easier.

The Benefits of Contract Management Software

Contract management software helps businesses of all industries and sizes. This is by streamlining and automating the entire contract lifecycle, from start to finish.

This software solution has helped organizations cut down on labor costs, simplify the contract lifecycle, cut down on legal costs, help keep track of renewals, provide a secure repository for all contracts, enhance visibility, eliminate the need for filing cabinets or computer folders… the list goes on.

Although contract management software has many benefits, the fact is that in 2021 – with the massive shift to digital contact and online communication – this software is absolutely necessary for ALL businesses. This is no matter the industry, size, or location.

The only way to continue growing a business throughout the pandemic is to adapt with the times, and contract management software is an easy solution to help you do exactly that.