If companies do not have access to a digital contract management tool, they may be working with manual and time-consuming data management and documentation processes:
Repeated data entry
-Manual entry of large volumes of purchase orders
-Long process flow during contract creation
-Delayed approval due to a complicated signature process
-Manual contract adjustment and corresponding post-processing to incorporate –current terms and conditions due to, among other things, a cost increase on every second or third purchase order with the supplier
Does the hamster wheel sound familiar? Let’s take action together! We’ll discuss 6 important topics you should focus on and give you practical digitization tips so your team can focus on core tasks.
Tip 1: Ensure flexible contract management with simple tracking
Documenting orders and contracts is usually a problem for many small, medium or large organizations. A digital contract management system allows all contracts to be kept in one place, providing a centralized location where all contracts can be stored by category and supplier with easy access.
Inhubber’s automated contract system provides a centralized location for contracts to be quickly accessed from any location.
Tip 2: Eliminate complicated and lengthy approval flows
In the absence of master procurement contracts, specific requirement profiles are created for larger orders, and each requirement profile always goes through the same approval flow. This time-consuming reconciliation process also leads to laborious follow-ups within the approval flow. Frequent consequences of this are unnecessary order delays, time-consuming physical documentation of the approval flow, and ultimately reminders due to excessively long process loops.
This high manual effort can be replaced by simple process automation. It is no longer necessary to execute a large number of purchase orders because a consolidated contract exists for each supplier. The approval flow is streamlined as responsibilities are clearly defined. Contracts can be reviewed, approved and signed with one click. The system provides supervisors with a history so they can review data themselves in seconds.
Tip 3: Free your desk from paper and breathe
Physical contracts require numerous and time-consuming paper-based activities. A contract is printed, signed and scanned again; in the worst case, barcoded beforehand. The high opportunity costs have a strong impact on business performance. Automation according to DSGVO makes it possible to introduce a paperless environment in the company. At the same time, appropriate contract management software can address legal retention period requirements. The good side effect? You save the environment by reducing carbon dioxide emissions.
Inhubber’s goal is to implement an electronic contract management system so that organizations and companies can go paperless in the future to protect the environment by unnecessarily clearing forests.
Tip 4: Costs down? Secure your competitive advantage
Automation often saves money; business process costs can be reduced by 25% to 40% on average. Automation helps companies improve related workflows, ensures higher productivity, and ultimately reduces overhead and opportunity costs by eliminating unnecessary printing, scanning, and filing.
The Covid 19 pandemic hit the global economy hard. It caused prices of goods to rise. The Ever Given accident in March 2021 blocked the Suez Canal for several days, also causing supply shortages and price increases due to shortages. Procurement contact automation saves you from higher material unit prices, because with the help of intelligent contract management software combined with a legally secure digital signature, contracts can be concluded just-in-time worldwide. The fast response time is a clear competitive advantage.
Inhubber illustrates that with Inhubber’s contract management system, a company can effectively save up to 50% of contract management costs and up to 10% of total annual expenses.
Tip 5: Appropriate software should ensure maximum security and transparency
Physical contracts are often easily accessible to many people within an organization. Likewise, all information can be easily removed from the company without proof. The reason for this is the excessive amount of paper coupled with costly contract filing -management processes and the dependency on human error.
Inhubber provides your organization with a secure and transparent electronic document in the form of a digital contract. All data and communication is encrypted end-to-end. There is secure access at all times via two-factor authentication and hosted on German servers, certified to ISO 27001. You determine who has access to a document, when, and for how long.
Tip 6: Facilitate deal flow with digital signatures
You’re probably familiar with the tedious and extremely time-consuming contract approval process: Often, several people are involved in the approval and signing process. Careless mistakes and delays are not uncommon. Typically, the manual process of contract execution and approval looks like this:
Negotiation > Manual drafting > Contract preparation > Review > Edit > AM approval and signature > LM approval and signature > Supplier signature.
If the contract amount exceeds a certain value, the Vice President’s approval and signature is required prior to signature and acceptance by the supplier.
The entire analog process creates unnecessary work. Add to that the fact that you always have to start over with each new contract or addendum. All steps in physical contract management require extensive tracking, time investment, and resource commitment.
Digital signatures speed up the contract approval process and reduce time by avoiding extensive follow-ups. Implementing the automation tool enables contracts to be legally, digitally signed. As a result, all parties involved are familiar with the process. Follow-up is eliminated and time and resources are reduced.
Conclusion: Invest strategically to be prepared for disruptive changes in a dynamic marketplace.
Implement a contract automation system in your company that simplifies your procurement process and makes all manual processes obsolete.
Inhubber offers a contract management software without any installation or user onboarding fees. Inhubber is a flexible and tangible contract management system that meets the needs of your business.
The future of procurement requires advanced technologies and processes. Automation significantly improves supplier management and allows procurement to be more strategic. In recent years, the procurement process has changed in many ways. Digital technologies have transformed as well as automated typical manual processes and companies are strengthening their business with the help of digitalization and innovation.
Inhubber offers all large and small companies a platform to meet the digital requirements in the future. Inhubber enables all necessary advancements with just one implementation. Automation, contract filing, fast digital signatures, security agreements, information transparency, document analysis, artificial intelligence. Inhubber creates an economical and ecological environment. Let us automate, let us digitize, let us enter a new world of automation.
Ready for a new way of working with contracts?
