Published on April 22nd, 2020 | by Sunit Nandi0
The best way to easily manage contract workflows
The importance of negotiating contracts for your business cannot be underestimated. These contracts have all the details of transactions, so any mistake can lead to a huge financial loss. Most of the contract management processes were usually paper-based, leading to many people overlooking important details. Fortunately, with the coming of new technology, you can now automate the processes across your business to make things a lot easier. This post explains how to easily manage contract workflows.
Contract negotiation involves finding a common interest between two or more stakeholders. This process usually involves considering both external and internal stakeholders. Internal stakeholders refer to people representing your company, such as experts from sales, finance, and legal departments. On the other hand, external stakeholders are those your company wants to do business with like distributors, vendors, clients, and suppliers.
Effective contract management workflows should rely on process management software and contract templates to integrate the requirements of both internal and external stakeholders while negotiating. Once the negotiations are complete, the contract document is generated automatically.
Building an efficient contract process
To easily manage contract workflows, you should first identify your internal and external stakeholders that play key roles in negotiating and creating contracts. Regardless of the extent of roles that your departments play in the process, you should consider including all of them. When it comes to external stakeholders, you should categorize them so that any recurring differences while negotiating contracts can be accounted for.
The ideal way to do this is by using customized contract templates. Once you identify all the stakeholders, you should determine individuals responsible for each task and the due date for each task. Remember that some departments like the legal might be involved for more than once when streamlining the process. For instance, the legal can offer advice during the beginning phase of negotiation and also approve the final contract at the later stage.
Utilizing process management software
You can create and use the templates in the contract management process. Once you complete this process, you can use process management software to automate all the contracting processes.
Here is how you can automate the contract management process. You should upload the input documents to the process to make sure that all the information is stored in one place. Because of this, all the negotiations and contracts are transparent and accessible to people authorized to see the information in the system.
Besides, this software can also output documents, meaning it can automatically generate contracts by utilizing the ones you provided before in the process. The system is capable of doing various activities, such as automatically sending documents to external stakeholders through email.
You might also be pleased to know that the software allows users to track any changes. This makes it easier to write templates and improve the accuracy of the audit trails. Aside from this, all people authorized to access the information can view the process documents and the system facilitates easy communication between departments and offers real-time changes.
Lastly, contract management software has secure storage for all your data. As a result, you have peace of mind knowing that the business and client data is well-protected.