Contracts are the lifeline of your business: the vast majority of business transactions are indeed determined by a contract. Any mistakes or inefficiencies in this process can increase the company’s liability and have a significant impact on the business.
Rightly so, contract automation tools are gaining in popularity. However, according to an Apttus survey less than half of the respondents have invested in an automated contract management tool.
If your legal department is still using traditional contract management with manual processes, how are you coping with increased pressure to mitigate risk and stay in control?
Needless to say, using manual processes and working on multiple platforms inevitably lead to inefficiencies that can impact the entire company’s bottom line. When contracts are managed manually, these are just a few of the consequences:
- Poor insight into critical contract information by key players leads to bottlenecks
- Poor decision-making due to inaccurate or incomplete contract data
- The amount of time needed to draft standard contracts exponentially increases
- Manual reporting is cumbersome and complicated, limiting process control
- Legal resources are unable to follow up with commitments
- Information loss is the order of the day
- Risk management is not performed due to lack of time and resources
All the above, in addition to human error, can easily translate into delays in contract negotiations, disagreements over contract scope, inappropriate contract structures, performance failures, and/or missed renewal deadlines. According to estimates, ineffective and inefficient contract management can cost your company up to 9% of annual revenues. No Legal Counsel wants to be accused of that!
Legal plays in an important role in ensuring contracts enhance business results, protect the company from losses and deliver on expectations.