Contract management procedures cross departmental boundaries and affect almost every aspect of operations. An automated management system helps streamline these processes and allows each department to create, retrieve, and monitor contract data more efficiently. While the benefits of an effective contract management solution impact all departments in an organization, there are six that can profit from its tools the most.
1. Sales Department
Integrated contract management solutions help sales teams create consistent legal agreements for products and/or services every time someone places a new order. Employees can use audit and revision tracking tools to alert team members whenever a user updates an item, generates a copy or downloads a new contract. Centralized systems allow employees to search for specific versions of the same contract and ensure that all active agreements are up-to-date.
With numerous tools available at the click of a button, sales teams using an automated contract management system can benefit from these advantages:
- Increased Revenue – Clearer oversight and alert systems help reduce revenue leakage from missed renewals.
- Easy Reporting – Contract status updates help team members generate accurate sales forecasts and meet compliance milestones
- Reduced Errors – Automated contract creation helps reduce the number of manual errors when drafting new agreements.
2. Marketing Department
When using an automated system, marketing departments can ensure they use the same branding and content in all product contracts. Employees can input business terms, product descriptions, and pricing into templates and easily amend them. Updated templates automatically become available to the entire organization, eliminating the risk of using out-of-date marketing materials.
Marketing teams can use centralized databases to monitor and analyze specific product lines, special offers, and promotions. They can then use this data to forecast trends and maximize the success of a lucrative advertising campaign.
3. Procurement Department
Procurement teams can pull purchase data, such as volumes and prices, service level agreements (SLAs), terminations, and extensions from centralized contract management systems. Overseeing and renewing buy-side contracts is simple with access to scheduled alerts and company-wide databases. SLA milestones can be automatically reported, reducing the risk of lapsed contracts.
4. Fulfillment Department
Automated events, triggered alerts, and customized notifications help fulfillment teams improve workflow and meet delivery deadlines. Using modern contract management solutions, fulfillment teams can set alerts for when contracts are updated and require review. Without access to a centralized system or the ability to pull current contract data, fulfillment teams may be slow to execute deliveries or confirm that the terms have been satisfied.
5. Legal Department
The policies that underpin contractual agreements must be monitored and upheld. A comprehensive contract management solution helps streamline this process by granting legal personnel access to historical data, such as when an agreement was signed, who updated it, and when a renewal is required. Legal teams can access and update contract templates, ensuring that all terms and conditions are current, inputted correctly, and in the right format.
6. Finance Department
Using an integrated, centralized database, finance teams can avoid inputting the same information into multiple programs. Reporting on the status of a contract is easy, allowing team members to generate accurate revenue forecasts and reports. Using a streamlined contract management system has these advantages:
- Increased security by maintaining accurate terms and conditions across all departments
- Increased accuracy between reported revenue and contracted revenue through alerts and automation
- Improved productivity by reducing service and delivery times through automation
Centralized programs help all departments manage contractual agreements with greater accuracy while protecting against unnecessary errors caused by messy manual systems.