Are you wasting valuable time on manual contract processes and not receiving the value you expect from your current system? If so, it’s likely time to upgrade to a new contract management system. A well-designed contract management software can drastically reduce operational costs, streamline contracts, and help your team increase bottom-line value. You must select the best CMS for your business to maximize these benefits.
Identify Your Needs and Goals
Contracts define several critical business relationships and strategies, determining pricing structures, terms and conditions for projects, warranties, rights, and obligations. Inefficient contract management can lead to various operational and financial risks, including legal disputes and missed revenue opportunities. Effective contract governance reduces administrative work, improves collaboration, and ensures everyone understands and abides by agreed-upon terms. It can also help businesses achieve negotiated outcomes and identify areas for revenue growth. When choosing a contract management solution, it’s essential to identify your specific needs and goals. For example, you may need a simple, easy-to-follow storage system for your contracts, or you might want to integrate it with other systems in the organization, like CPQ (configure, price, quote) and ERP (enterprise resource planning). In addition, the software should be user-friendly and quickly provide insights into contract data. It should also be scalable to meet the needs of your growing business. Ideally, it should be able to be customized and expanded with third-party integrations.
Evaluate the Platform’s Usability
Whether you need contract management software for sales, legal, or procurement, look for a user-friendly platform with an intuitive interface. A centralized repository should be easy to navigate, with search functionality that filters records by various criteria. This feature is essential, particularly during contract negotiations or in a dispute. For example, a procurement contract management system with built-in templates and snippets can make contract creation feel like a plug-and-play. It can also be configured to automatically route contracts to the correct reviewers and approvers, facilitating compliance and reducing manual workflow steps. Small and midsize businesses often work on tight margins, meaning simple contract management software is essential for business processes.
Look for Integrations
Contract management solutions should be compatible with the tools your team already uses. The software should integrate with your ERP, CRM, financial, and CPQ systems. This provides seamless communication between systems and creates a more streamlined workflow for your business. Another essential factor to consider when choosing a contract management system is its security and compliance with industry regulations. This is especially important if you use the system to store sensitive data. Finally, looking for a contract management solution with a central repository feature would be best. This can save your employees valuable time by allowing them to find contracts quickly and easily. This can ultimately lead to higher productivity levels and improved employee morale. Following these tips, you can select a contract management system that best meets your company’s needs and goals. This will enable you to increase outcomes, reduce operational costs, and improve customer service.
Compare Pricing and Customer Support
Before settling on a contract management solution, take the time to compare pricing and customer support options. The more you know, the better your team will be positioned to make a successful and efficient transition. Look for a system that keeps extra costs at a minimum and offers transparent pricing for these add-ons. When comparing pricing, consider the number of internal users needing access to your new contract management system. For example, if your contract creation process involves multiple teams (including legal, sales, and procurement) and external parties, choose a solution that allows you to assign permissions for different users internally. Other features include audit trails, content repository functionality, and speed search capabilities. These will all help your team to be more productive, reduce risk, and minimize costly mistakes.
