Digital transformation in the management of the contracts is the need of today’s businesses. The isolated documents and spreadsheets are not fit for today’s complex business environment. Like in every field, there are many advantages of using cloud based system in contract management also. We will learn about cloud based contract management system in this article.
What is Cloud Based Contract Management System?
Cloud based contract management system utilizes dedicated SaaS solutions to manage the lifecycle of an individual contract instead of managing it manually. The drafting and implementation of contract involves many processes like request for quotations/proposals, preparing RFP documents, selection of contractor/supplier, contract negotiation, contract signing, contract implementation, contract closure, etc. Managing these processes manually is time consuming and require multiple redlines, legal review, and involves everyone from the Account Executive to the In-House Counsel and Procurement Manager. These processes can easily be managed and streamlined using cloud-based contract management software. The cloud based contract management system provides a reliable, centralized, and controlled contracting solution which can reduce risk and releases organizational resources for other purposes.
Advantages of Cloud Based Contract Management System
The main advantages of cloud based contract management system are as follows:
Centralized and Secure Storage of Data
The main advantage of cloud based contract management system is that the data is stored securely at a centralized server. In the manual system, data is kept isolated at many places, in the form of either hard copies or in the spreadsheets. The management of data in case of manual system is really complicated. The data may not be available when needed and may be lost sometime. In the cloud based management system, these issues are eliminated as the data is saved at a secured central place in the digital form. The security of data may also be ensured in this case.
The organizations have many systems in place such as procurement and contract management, finance & accounting, marketing, etc. Without cloud-based software to manage your contracts, it doubles or triples the effort required to move one piece of information between systems. The cloud based contract management system enables communication between the systems eliminating repetition of work and improving visibility.
Remote Access from Anywhere in the World
Another advantage of cloud contract management is that the data may be accessed from anywhere in the world. Irrespective of your location, you have 24×7 access to data. If the company has works spread in many geographical locations and clients all over the world, it is difficult to carry and manage data in every location if you are managing your contracts manually. The cloud based contract management system enables remote access of data from anywhere in the world.
Key Features of Cloud Contract Management
(1) Centralization of data
Centralization of data is one of the key feature of cloud contract management. The data is saved digitally at a central server and is easily searchable by the team members.
(2) Automated Data Extraction
Cloud contract management enables automated data extraction. The process is fast and there are no chances of error. Cloud contract management automatically and accurately extracts data and stores it against the contract.
(3) Alerts and Notifications
Tracking the dates is very complicated and time consuming in contracts when they are being managed manually. In contracts there are several actions to be taken against various deadlines, such as, monitoring milestones and imposing liquidity damages for delay, timely payment, extension of contract, renewing bank guarantees against securities, sending notices to contractors, etc. Cloud contract management automatically send alerts and notifications to concerning parties which such an event triggers. The management of contracts therefore becomes very easy in case of contracts being managed using cloud based system.
(4) E- signatures
This is one of the most important feature of the cloud contract management. In the conventional contracts the parties sign manually but cloud contract management software allows people to work from anywhere, and enables them to sign from anywhere too. Wherever they are, whatever device they are using, contracts can be signed with legally-binding electronic signatures which ultimately saves time, money and effort.
Some Popular Cloud Based Contract Management Software
There are many good cloud based contact management systems in the market today, few of which are mentioned below:
Cloud based contract management is the need of the hour. It uses the modern technology to manage contacts and has various advantages such as centralized storage, security of data, access from anywhere, system integration, etc. It gives you the ability to automate and streamline your processes easily. The cloud based contact management system enhances the efficiency of the organizations, reduces errors and saves resources and hence provides a competitive edge to the organization.
Also read: Smart Contract using Blockchain technology