The term contract management describes a procedure for the administration of contracts by a company. Ideally, a digital contract management solution supports all phases of contract management. The different phases range from contract drafting and contract creation to contract modification and contract destruction.
Contract life cycle in contract management
Of course, a digital contract management software should also be able to handle the finer nuances of contract management and thus fully exploit the advantages of a digital solution. This includes the following intermediate steps:
- Support with contract approval
- Transparent contract storage
- contract fulfilment
- Effective contract search
- Options for contract evaluation
- Renewal and renewal of contracts
- contract archiving
Once a solution fully supports the contract lifecycle, it provides the best possible support for digital contract management for today’s businesses. Of particular interest here are the collaborative options that a contract management solution should provide. Modern organizations are characterized by the fact that they are set up in different locations. As soon as the solution supports the collaboration of distributed teams, one can speak of a successful solution. A good example of this aspect of collaboration relates in particular to the phases of contract drafting, creation and modification of contracts.