Contract management involves constant monitoring.
Companies who do not monitor their contracts with a centralized system expose the organization to unnecessary risks and increased costs. For example: on average, 3% of vendor contracts renew without the client’s intention.
To prevent not only these incurred costs as well as the costs associated with noncompliance, companies should assess the use of an automated contract management system to help them manage contracts and contract documents across the organization.
Effective contract management: centralize all your data and documents
A centralized contract and document management solution will not only save you from unnecessary expenses; there are several other benefits including audit history, central repository, automated alerting, workflow automation, version history, security control, and process scalability. This centralization is especially essential for managing third-party vendor contracts which can exist across an organization in a variety of departments and having a single, clear picture of the full contract lifecycle will save an organization from incredible (and potentially costly!) headaches down the road.
The benefits of a centralized contract management solution
With a centralized contract and document management solution, the benefits are clear and the ROI is near immediate.
Audit History: Eliminate the impossible effort to identify who made changes to an agreement by tracking the entire contract lifecycle within a centralized system.
Central Repository: Go beyond the audit history to provide employees we a simple, central, searchable location for all vendor agreements and supporting documents.
Automated Alerting: Never miss a contract term clause again! Use an alerting feature for notification on contract term information. Linked vendor documents may also need to be periodically obtained such as a vendor’s Certificate of Insurance.
Workflow Automation: Some contracts may have a defined workflow and approval process involving several departments. A contract management system with workflow automation will track the approval from various departments.
Version History: Each time a contract or document is reviewed and edited you generate a new version. Tracking this progression is nearly impossible without an automated workflow to show version history.
Security Control: Sensitive contracts and documents cannot be controlled if they are routed through email. Having everything in a centralized solution enables you to limit who can view specific contracts and documents.
Process Scalability: Organizations adapt and grow over time. Altering a process that is not automated poses its own unique set of business challenges. A centralized solution will empower you to enhance your process over time.
The complexities of increasing the need for third-party vendors while dealing with increasing regulatory oversight has made traditional processes and tools for contract management obsolete. To cost-effectively mitigate potential risk and exposure, companies are turning to state-of-the-art software solutions.
Vendor Risk Management
A vendor risk management solution, like Mitratech’s VendorInsight, automates, centralizes, and simplifies the contract and document management process. With tools like workflow, customizable contract alerts, document classification and management, teams gain transparency across the entire contract lifecycle and improve collaboration with stakeholders both internal and external.
Compliance & Obligations Management
A compliance and obligations management solution, like Mitratech’s CMO offering, uses a simple, intuitive interface to let employees and auditors be proactive in incident and audit management, including contract obligations, controls, investigations, and non-conformance reporting. Easily report incidents, understand your obligations – both internal and external – and continuously improve your compliance performance.
A best-in-class workflow automation solution like Mitratech’s TAP is easy to adopt and use, and delivers nearly instant ROI as it allows form and process customization, reduces errors, accelerates workflows, builds collaboration, and provides automated archiving and e-signature integration, too.