If you run a business, then you’ll likely come across contract management. This is an essential part of the operational process, and it covers a range of different things. Some people will also call it contract lifecycle management, but the two terms are the same.
The question most people want to understand is what contract management is about. What exactly is the process, what do you have to contend with, and what does it cover? In this blog, we’ll go over all the aspects of contract management, so you understand what it’s all about.
What is contract management?
The simple definition is that it refers to managing and looking after all the contracts your organisation has with numerous different parties. This could include contracts with clients, suppliers, partners, or even your employees.
In a broader sense, it involves creating contracts, ensuring they’re executed, and analysing each and every one of them. By doing this, it lets your business improve your operational performance, and manage any financial risks that could be present. There are different stages within the contract management process, and they’re all designed to ensure that you create contracts that suit your needs and that provide you with the most value possible.
What happens during contract management?
Whenever you want to do business with someone else, you need to have a contract in place. This forms a legally binding document that outlines what you both agree on. As a result, it prevents cases where you might pay for services and then they’re not completed to the standard you hoped. Contract management starts with outlining what you hope to achieve from the contract. It’s where you decide on what you’re getting from this contract, so you actually get benefits from it.
Then, you have to actually draw up your contract and create the first draft, before entering negotiations with the other party to ensure that everyone agrees on the terms of the contract, and it can be approved. Then, it’s a case of executing it and managing the contract by staying on top of any revisions or amendments that are made by either party. You can also analyse all of your contracts as well, or conduct audits to see how much value you’re getting from them. In doing so, it enables you to tweak things to ensure that you’re getting as much as possible and reducing any financial risks.
How is contract management carried out?
In days gone by, contract management was an extremely lengthy and complicated process. Think about it, your business has multiple contracts, all of which need to be managed. So, it was a case of finding each contract, checking it through, sending it off to the other party for negotiations or revisions, waiting for it to come back, and so on. This sounds hard enough already, but factor in that you may have contacts all over the world, and the logistics become staggeringly tough to get around.
Nowadays, you can achieve fantastic contract management with the right software. Here at Symfact, we provide contract management software that streamlines everything for you. Now, you can create and edit contracts all in one place, using a web browser-based platform. This also means that you can access your contracts from any device with an internet connection. There are tools and features available that allow you to run analysis on specific contracts and carry out audits, all of which helps you maximise your efficiency and get a lot of value from each and every contract.
Essentially, this software acts as a filing cabinet that you can always access – but without all the paper contracts. It’s extremely secure, offering you a convenient way of managing contracts and staying on top of business.
Summary
Contract management is all about looking after the many contracts your business has, as opposed to just stuffing them away in cabinets and drawers, never to be looked at again. By correctly managing your contracts, you can improve your business by ensuring that all your needs continue to be met. With contract management software, you now have an easy way to handle everything. Templates can be used to create contracts, negotiations can be done in real-time via the platform, and documents can be signed electronically, speeding the whole process up.
Consequently, your company can minimise financial risks, meaning you get a positive outcome from your contracts. The whole process of contract management cannot be overlooked, and the best way to stay on top of things is by using some high-quality software.
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