Contracts are at the heart of a company's life. They define and frame all of its projects, and in this respect, contribute directly to its growth. Contract management is therefore a key issue.
The problems of manual contract management
According to a study conducted by the International Association for Contract and Commercial Management (IACCM), poor contract management can reduce a company's annual revenue by 10%.
Today, many companies still use manual and non-optimized management of their contracts.
This leads to many frictions, among which we can mention:
· A multiplication of low value-added tasks, for legal teams, but also for commercial and financial teams.
· A slowdown in the negotiation phases, with numerous round-trips between the parties, duplication of work materials and versions... According to a DocuSign report, 33% of employees estimate that the process to negotiate a traditional contract (without legal complexity) takes more than 30 hours.
· Difficulties in controlling all contractual risks.
· Unsolicited contract renewals.
The advantages of contract management automation
· Smoother, more efficient negotiations. According to a study conducted by Goldman Sachs, Contract Management Automation could speed up the negotiation phase by 50%. *
· Lower costs. According to the same study, Contract Management Automation would reduce processing costs by 30%. *
· Better control of contractual risks.
· Better internal collaboration.