Contract automation is an incredible way to streamline contract management and increase organizational productivity and efficiency. Contact automation allows contracts to be built, stored, managed, and shared between your business and your clients in a very clear and stepwise manner.
Contract management software with automation capabilities allows your company to allocate more time and resources to tasks that require more attention to detail and manual work. Contract automation sends documents and legal agreements down a predesigned workflow pipeline that notifies specific parties of various actions to take and when to take them. Contract automation software optimizes your contract management system by sending a contract through the lifecycle on autopilot, allowing for simplified collaboration and maximized visibility.
This makes the entirety of contract’s lifecycle much easier, making it very simple and easy for clients to work with you on contracts. Contract automation is also excellent for risk mitigation and management, as it sends documents through a standardized process of steps that are preapproved and compliant. With the extra time that contract automation software creates, your business can maximize results and reduce unnecessary costs.
According to a 2018 IDC report, data professionals (accounting for a third of an organization’s employees on average) waste 30% of their working hours searching for data, preparing data, or protecting data. This illustrates just how impactful wasting time can be when you’re searching endlessly for documents and data. Automation reduces operating costs and increases productivity, collaboration, communication, and efficiency for your entire team. Employing contract workflow automation is absolutely the way forward.
With all this in mind, let’s discuss what contract automation is and how it’s used to optimize contract management in today’s digitally-based business environment.
What is contract automation?
Contract automation is the ability of contract management software to systematize, control, and direct the contract lifecycle rather than be manually driven by an in-house contract manager. By automating workflows, your company can create and execute contracts with speed, enhance the negotiations process, improve communication, and collect data for later analysis. Simplifying the who, the where, and the action for the contract’s next steps is where workflow automation sweeps in and saves the day.
Automated contract analysis workflows can aid in this process by introducing a different type of visibility and accountability while simultaneously having an organized path that notifies various parties of the contract’s location and status. For more information on how contract automation software has changed the business world, click here.
How does contract automation work?
Contract automation helps by creating an organized system for contracts to follow. Every step of a contract’s lifecycle is planned in a manner that allows for simplicity in the building, analysis, management, and sending-off of contracts. Contract management software additionally provides contract and clause templates within preapproved template and clause libraries so your contract management team can use data that auto populates into the templates, creating contracts within minutes. Contract automation within specialized contract management software is highly secure with permissions-based access and data encryption.
The main key of automated contract analysis is that you spend less time on collecting and finding data, and more time on productive tasks – like building contracts. Contract automation primarily creates a pathway for quicker and more efficient transactions, maximized transparency and viability, and increased risk management and mitigation.
15 Key Advantages of Contract Automation
- Faster contract lifecycles
- Improved organization of lifecycle stages
- Task automation
- Better visibility and transparency
- Increased risk mitigation and management
- Higher quality business dealings and client experience/satisfaction
- Fast turnaround with eSignature
- Simple contract building with preapproved clause and contract template libraries
- Obligation tracking
- Secure cloud storage
- Automated notifications, reminders, and alerts
- Enhanced collaboration and communication
- Readily available data reports for analysis
- Built-in redlining and editing features to keep track of version changes
- Higher levels of compliance
With traditional, manual contract management, you will often encounter the following pitfalls during various stages of contract lifecycles:
- Reduced transparency and visibility
- Disorganization, leading to data misplacement and loss
- Low quality and effectiveness of operations
- Subpar contracts
Why does contract automation eradicate the problems that occur during manual contract management?
With the features offered by leading contract management software solutions, contract automation tools gets completely rid of a whole host of errors and issues that arise during traditional, manual contract management processes. For example, with customizable contract and clause templates, you can easily build any contract type and ensure that it is compliant and up to your organization’s standards. Automated contract analysis workflows also allow for easier communication and collaboration among all the parties involved in a particular document.
Tracking changes and version editions of documents has never been easier – so now everyone can stay on the same page regarding document changes and iterations. Lastly, with audit trails, you can monitor contracts and ensure compliance. In a centralized system, you can easily manage, build, edit, and deliver contracts so you can focus additional efforts on other critical tasks that will help your business grow and achieve key results.
Is contract automation only helpful for eSignature?
Contract automation is fantastic for all aspects of contract lifecycle management. eSignature is one of the great features associated with contract automation, but there are certainly several others. The best contract management software solutions will include contract automation capabilities as well as the following:
- Contract and clause template libraires
- Easy delivery and send-off of contracts and associated documents
- Version tracking
- Enhanced collaboration and communication
- Integrations with additional platforms and apps
Contract automation tool is an essential feature within a contract management software solution. Contract lifecycle management software helps in the creation, management, analysis, and storage of legal documents. Contract automation capabilities provided by the CLM software give users the ability to design customized automated workflows so that employees can easily build contracts and have the correct people involved throughout the process of contract’s lifecycle.
Contract automation tool has phenomenal advantages when implemented properly. Are you ready use automated contract workflows? Our Contract Management System is here to help your business automate contracts to boost efficiency, productivity, and maximize results.
Ready to get started today? Reach out to us to learn more about our Dock 365 Contract Management System.
If you would like more information, we welcome you to schedule a free demo with us today.
Written by Lindsey Paulk
Lindsey Paulk is a Content Writer in Jacksonville, Florida that specializes in digitally communicating all-things contract management.