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Contracts are an essential part of any business as they set the terms for high-value transactions. In the past, managing contracts depended on which department was in charge of the contract. Generally, all contracts were completed on paper, with the signed documents gathering dust in one of many filing cabinets.
However, keeping contracts in an accessible place is paramount to running a successful business. Outdated methods of managing contracts and TEM services leave a lot of room for error and financial loss.
Luckily, since many businesses are now digitized, keeping track of contracts is easier than ever. Here are some factors to keep in mind for efficient contract management:
Know who to include — All businesses should have a process in place for creating and managing any contractual documents. First, the company should decide which people in the organization can participate in these contracts and approve them. Additionally, every department that has a stake in the outcome of the contract should be included in negotiations.
Similarly, everyone involved with the external party should be a part of the process. Knowing who to include can significantly streamline the process and eliminate complications later.
Make a template of the management process — After you’ve discovered who needs to be included in the process, you should then come up with a template, outlining steps to the process. When developing this template, it’s important to evaluate the methods already in place to see if they will continue to be beneficial. If not, you can adjust them. The template you ultimately develop should be the standard for all current and future negotiating.
Use software to automate the process — Companies are now turning to various types of management software to track contract development in a simple way. These systems involve both parties working to complete the contract design and create the template for the contract. These software programs are easily accessed by multiple people and allow both parties to see different versions of the contract. As negotiations proceed, the contract will update.
Contract management software will automatically create the final documents, using the information provided during the process. It can also send updated contracts to interested parties.
With a process as vital as contract management, it’s essential to pick a reliable system if you decide to go with automated software. At brightfin, we provide second-to-none TEM services to help companies manage their contracts with the highest levels of efficiency and accuracy.