Contract management
can be a paper-heavy and time-intensive process due to excessive contract
length, revisions and approval steps. In addition, contracts must be stored in
an easily accessible place so that they are available for reference at any time
until they expire or are renewed. Here are five reasons why a document
management system is a great tool for contract management.
1. Decreased Costs
Storing contracts in
an electronic repository results in decreased storage, printing and courier
costs. Contracts can be shared by email or through an online web
portal—eliminating the need to ship huge packets of paper. They can also be
signed electronically, eliminating printing completely.
For example, Arquivo Digital manages contracts for
vehicle financing in Brazil. By automating contract management, contracts can
be scanned in at any location—including the depths of the Amazon jungle—and
accessed immediately through an online portal.
2. Central Control
It
is possible to store all versions of the same contract in one document,
ensuring that the newest version is always the one being accessed and revised.
Different levels of contract access can be granted to different individuals.
For example, the legal counsel will be able to edit the contracts while the
records manager may only be able to read the content.
For
example, Fairfield
Industries uses an ECM
system to manage valuable contracts related to seismic equipment. The system
gives the organization the ability to provide the landman with instant access
to the documents he needs—while still protecting confidential information in
compliance with regulations.
3.
Improved Accountability
Electronic
contracts stored in a repository can be accessed from any computer or mobile
device. Making contracts so easily accessible leads to improved accountability
over stipulations and conditions, since a contract can be viewed at any time.
For example, United Road
Towing scans all
documents related to towed vehicles into an ECM repository and makes them
available to its customers through an online portal. Customers can access the
towing contract and all related documents on the same day as the tow,
eliminating any confusion regarding the conditions of the tow.
4. Increased Productivity
Reviewing
and approving contracts is faster when an electronic contract arrives in your
email inbox rather than a hard-to-sort stack of paper delivered via a courier
service. Even if the recipient is out of the office, he can review and sign the
contract from a mobile device.
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