From client relationships, employee agreements, vendor agreements, to sale deeds, contracts form the backbone of all business relationships. According to Cottrill Research, close to 60-80% of business operations are governed by contracts. However, the conventional approach of using scattered document storage systems leads to numerous issues. Without a centralized contract repository, businesses experience inefficiencies and non-compliance, which lead to legal concerns and inefficiencies.
A contract repository acts as a central hub for businesses to store, manage, access, and organize their entire contract portfolio. Organizations will be able to have complete awareness of all their contractual obligations and be able to automate their contracts throughout their life cycles using contract management software with an integrated centralized document repository system.
What Is A Contract Repository?
A contract repository is a centralized system that contains all of an organization’s contract data, legacy contracts, supporting documents, and related information. By combining all these elements, a contract repository is a complete storage and administration solution for contracts.
Contract repository systems are not just meant to store business documents; they are designed to facilitate collaboration among stakeholders while streamlining contract workflows. They contain features and functionalities that help teams participate and complete contractual workflows more efficiently.
Challenges That Come With The Storage And Retrieval Of Contracts
Businesses typically face many obstacles when it comes to the proper organization, storage, management, and retrieval of their plethora of contract documents. This includes:
- Limited access: It is difficult and time-consuming to access contracts when they are maintained across numerous offline and isolated systems. Allowing authorized users to access documents on time might get difficult, especially when a business works with offsite or distributed teams.
- Inefficiencies in search and retrieval: Locating a specific contract or extracting important information from a disorganized file cabinet that lacks proper indexing and retrieval capabilities leads to inefficiencies when looking for a particular document.
- Inability to monitor modifications: Keeping tabs on different versions of contracts and the lack of visibility of the most recent contract version due to decentralized storage, leads to confusion among stakeholders. Different departments may end up working on different versions of a contract, causing complications and delays.
- Inadequate knowledge of prior contractual data: With the lack of insights from past metrics and performance data from contracting history due to inefficient contract storage and retrieval methods, businesses are more susceptible to repeating erroneous choices and signing up for risky terms and conditions. Stakeholders have minimal awareness of subcontractor relationships and hierarchical structures.
- Failure to comply with regulatory requirements: Manual data aggregation from large volumes of business records is inefficient, prone to errors, and also raises the risk of data misreporting to regulatory agencies. Contract archiving, retrieval, and audit timeframes are increased, which has a negative impact on compliance.
- Impact on business operations: Disorganized contract storage makes it easy to overlook critical dates like renewals. Missed deadlines cause business disruption, which can result in dissatisfied clients, vendors, and stakeholders.
In addition to these issues, businesses must also cope with employees having to spend excessive time looking for contracts and the duplication of labor due to the inability to track contract revisions, which drives up resource expenses.
Furthermore, the lack of visibility into what was agreed upon with a contract’s terms and what was delivered results in inadequate outcomes and subpar project performance.
Essential Features In A Contract Repository: What Should Businesses Look For When Choosing One?
Companies often employ folders, binders, filing cabinets, or their existing tech stack to serve as a contract repository. When businesses use an inefficient, less robust contract storage system, it is far more limited in terms of many functionalities which a specialized contract repository could offer.
Having an exclusive contract repository with the following functionalities helps businesses manage their contracts seamlessly and efficiently.
- Centralized Storage: The contract repository must provide a safe and centralized space for all business contracts to be stored. Users must be able to organize contracts according to criteria like industry, client, year, etc. using folders, categorization, and tagging methods. Customizable document organization allows stakeholders to maintain and retrieve contracts easily.
- Hierarchical Access Controls: This feature ensures only individuals with proper permissions can access sensitive data stored in the repository. With strong security processes like data encryption and user authentication, only authorized persons will be able to view, modify, and manage contracts.
- Advanced Data Security Measures: A digital document repository must demonstrate appropriate measures taken for data security through compliance with data security regulations (ex: GDPR), role-based permissions for contract data access, data encryption, audit trails, and disaster recovery plans.
- Contract Version Control: A contract repository should be able to track the changes taking place on every contract, through edits, the addition of new clauses, etc. Version control ensures accuracy in the contracting process by creating a clear audit record of all the contract modifications made. It must also provide users with the ability to compare version histories and access past iterations of the document.
- Reporting and Analytics: The reporting and analytics feature of a repository is extremely essential as it provides insights into parameters like key metrics, contract performance, contract obligations, and compliance with existing standards and laws. Users must be able to generate reports to get a complete picture of all contract activities taking place.
- Easy Integration Capabilities: A contract repository must be easy to integrate with the enterprise IT stack and work with external systems like electronic signatures, CRM, etc. This will simplify contract-related operations across the board and enable smooth data transfer and access.
- Quick Search and Retrieval: A document repository must provide users with quick and advanced search capabilities across the contract inventory based on parameters such as keywords, meta data, vendor details, date of inception, client name, etc. This aids in effective contract identification and makes information retrieval fast and easy.
- Reminders and Notifications: Another important feature that a contract repository should have is the ability to deliver automated notifications and reminders. This assures prompt action since crucial contract milestones and deadlines like forthcoming expirations and renewal dates are at a lower risk of being missed.
How Does Centralizing Contract Storage Benefit Businesses?
Managing contracts effectively and efficiently is indispensable for any business, regardless of its size or industry. One of the most effective ways to achieve this is to implement a centralized contract repository.
By centralizing contract storage, companies can reap huge benefits, including improved contract accessibility, security, collaboration, and compliance.
- Comprehensive View and Oversight: A contract repository offers a bird’s-eye view of all business engagements, like relationships with business partners, third-party transactions, client bases, and more. Businesses get round-the-clock visibility and access to all engagements and agreements to monitor progress, gain insights, ensure compliance, and make revisions instantly.
- A Definitive Data Source: A centralized document repository creates a single source for all business contracts, including supporting documents and communications. Legal teams, decision making authorities, and all contract stakeholders can easily refer to the centralized repository for all data related to any particular contract transaction and be assured to find it there at all times.
- Streamlined Contractual Workflows: Executing a contract requires multiple processes, from the initial draft up to the final agreement. A repository creates a storage space for all contracts in progress and facilitates workflows like negotiations, approvals, signatures, execution, termination, and renewals seamlessly.
- Improved Decision Making: Assessing established relationships to gain insights into compliance and interdependencies becomes simpler when companies have a centralized contract repository management system. Contracts stored in digital repositories can be mined for insights, helping businesses make informed decisions and manage risk effectively.
- Data Integrity Remains Intact: Digital document storage with features like restricted access and document encryption ensures the security of contract data. These features help prevent unauthorized access and misuse of confidential business data and help firms prevent the occurrence of activities like data breaches and leaks.
- Audit Readiness: When organizations have easy access to all contractual data in a consolidated repository, it simplifies audit compliance processes. Businesses can shorten audit cycles from months to just a few days and will also be able to effortlessly generate and maintain audit trails for future audits on a contract repository.
- Reduced Administrative Tasks: Contract repository software has the potential to eliminate inefficiencies in manual administrative work by reducing the requirement for human labor. The latest agreements can be instantly digitized and added to the repository digitally, and advanced search features make finding the exact contract faster and simpler. Additionally, version control ensures users always refer to the most recent version of contracts.
Simplify Contract Organization And Storage With SignDesk’s CLM Software
Conventional contract storage and management methods, which deal with paper documents and filing cabinets, are inefficient and expensive in the long run. Storing contracts through email attachments and spreadsheets does not give companies the ability to make the most of their contracts. Businesses are thus shifting to a digital contract management methodology that centers on a cloud-based contract repository.
SignDesk’s intelligent Contract Lifecycle Management solution offers a centralized contract repository system that transforms the way firms store and manages their documents. Businesses can store, track, and manage all their contracts on a single cloud-based platform and streamline their contract-related workflows. They can leverage their contracts to enhance workflow efficiencies and make informed choices.
SignDesk’s contract management software includes an integrated contract repository with advanced contract management capabilities. Businesses can store their existing and past contracts in the digital repository and have instant access to any data they require at any time.
Get in touch with us to learn how CLM and digital contract storage can make your workflows simpler and more efficient.
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