How a Contract Management System Works

Contract management is the process of managing agreements you have with other businesses or suppliers. To ensure you maximise the performance of these agreements, you should have a digital contract management system in place. It will help you measure performance, identify and mitigate risks and ensure contract terms are adhered to.

How does a contract management system work?

A contract management system handles the entire contract lifecycle, from creating the contract, negotiating terms, signing, performance and termination.  It automates, manages and tracks each stage of the contract lifecycle. Using a data-driven approach, the software provides you with the information and analysis you need to make the right decisions for your business.

Contract management software stores your contracts digitally in a central repository. It makes it easier for users to find and view contracts while providing security and ensuring confidentiality as only authorised people can access them.

It automatically provides alerts when key actions need to be taken, for example, for authorisation of payment or when contract renewal dates are approaching. The system will also track supplier spend and prevent maverick purchases being made.

Functions of a contract management system

Creating and signing contracts

Contract templates tailored to your business speed up the creation of contracts. As does an electronic approval process and e-signature capture.

Managing the delivery of services

Commercial contract management ensures that services are delivered as stipulated by the terms of a contract.

Relationship management

Your contract management system provides insight and information on suppliers’ performance for supplier management purposes.

Continuous assessment

Your system ensures that purchasing processes are followed, and procurement activities are subject to ongoing evaluation.

Renegotiation, renewal and termination

your contract management system will help you understand what action you need to take when contracts are due for renewal. Taking into consideration supplier performance, commerciality and business needs, you can decide whether to renegotiate, terminate or renew each contract.

The benefits of a contract management system

Your contract management system will reduce the time you spend managing and administering your contracts. Benefits include:

  • Increased visibility of supplier performance
  • Enhanced compliance with contract terms
  • Shorter approval times
  • Better communication and collaboration
  • Enhanced operational efficiency
  • Supports risk management

Contract management is essential for all businesses. An automated, systematic process will help you avoid financial, regulatory and reputational penalties you could be subject to if your contracts aren't appropriately managed.

If you’re interested in learning more about contract management software, download a brochure or book a free system demo.

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please just email info@atamis.co.uk stating your preferred date and time.

Contact

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029 2279 0052

info@atamis.co.uk


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