What is Contract Management Software? Learn The Basics

What is Contract Management Software?
Contract management software is a system which provides a secure and easily accessible storage facility for any contracts an organization may use. It aims to provide a safer and more easily accessible option for contract management than using paper contracts or storing digital documents on local servers.
How Does Contract Management Software Work?
The process of storing contracts with contract management software depends on how the document is generated but the final result is the same. For paper contracts, a version of the document will be scanned and transformed into a digital file. In most situations, this digitization process will allow for it to be read and analyzed like any other file. With contracts that are already in a digital format, the file can simply be uploaded via a secure server to the management system.
Once uploaded, the contract management software will encrypt the digital version of the contract and store it on a cloud-based server. The remote storage improves both security and functionality, reducing the possibility of a device or hard copy being lost or compromised, as well as allowing for aggregation and quicker search of the items stored.
Core Features of Contract Management Software
Compared to traditional methods of storing and retrieving contracts, whether as a hard copy in a filing cabinet or a digital version stored on individual laptops or smart devices, it’s easy to see why organizations are increasingly moving towards contract management software as a solution that can keep pace with the information velocity required by the modern world.
Here are some of the defining features that contract management software provides for its users and makes it their preferred choice:
       Simpler contract generation: Block-by-block standard contracts can be created rather than re-using older and perhaps not Legal-approved contract templates or having to draw up a new contract from scratch.
       Clearer contract-based calendar: End of life (EOL), contract renewal and milestone dates can all be extracted when uploading, allowing for automatic reminders and the generation of an accurate and all-encompassing contract calendar.
       Negotiations are easily tracked: When sending contracts back and forth during the negotiation phase, having a secure, single source of truth allows all parties to easily identify what changes have been made since the previous version.
       More refined search: Automated recognition of all wording and figures, even from scanned documents, means that you can quickly find the exact contract or group of contracts that you are looking for.
       Integration with existing systems: With most organizations already aligning their systems with other products such as Salesforce or Docusign, having automatic integration of all contracts and changes with these is essential for the smooth flow of operations.
       Quicker access to documents: A cloud-based management system allows remote access to all important documents as well as the assigning of varying levels of roles and sharing.
       Greater analytical potential: The information from all contracts can be collated and aggregated to provide insights into how they are being used and how well they are being followed.
Contract management software is a natural advancement in terms of security and ease of access for contracts, no matter how large an organization is. It provides clarity during negotiations and a total picture of all contractual deadlines and key dates, making it an essential addition to professional life.

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