Contract Lifecycle Management Challenges

Managing contracts throughout its lifecycle is one of the laborious processes that requires intensive monitoring by experts. From contract request initiation to execution of contracts and managing its performance during the contractual period, contract managers encounter a number of challenges. It is essential to overcome these challenges to ensure a seamless functioning of contractual affairs. Here are the most common challenges faced by managers during contract lifecycle.

• Managing the Team

The process of contract management encompasses various stages, where experts and specialists render their expertise. While contract initiation through execution is managed by a team of specialists, the lifecycle management and processing of affairs is done by another team of trained experts. It is the contract manager’s duty to coalesce both the teams and ensure all activities are streamlined in the enterprise contract management software. 

• Process Scrutiny

Even with an army of contract specialists, there is room for errors and inefficiencies, which are to be identified at the earliest stage and removed. A misstep in the process can affect the organization adversely. Hence, contract managers leverage contract lifecycle management software systems to scrutinise every phase in the contract lifecycle for every contract efficiently. Thorough scrutiny will help in the identification and betterment of process inefficiencies.

• Enforcing Compliance 

The biggest challenge for every contract manager is enforcing compliance with contractual vendors. When the vendors or business partners do not abide by the fixed terms and conditions, it would lead to further problems during the contract lifecycle. With the aid of contract management software, the managers can keenly supervise whether the vendors and partners are complying with the terms. A best practice here is to communicate with the contractual partners regularly and ensure that the operations are run smoothly. 

• Managing Deadlines

When there are hundreds of contracts to manage, it is easy to get confused about deadlines and key milestones. Contract managers can easily overcome this challenge by resorting to an agile contract management software, where the deadlines for every contract can be recorded duly. The software notifies the entire team ahead of the deadline, thereby giving the contract manager a head start in reviewing the performance of contracts.

In this digital-fueled era, it is essential to equip your business with the latest tools and techniques to get ahead of your processes. DocuCollab is one of the best contract management software that allows the contract manager to streamline contractual affairs effortlessly. Click here to know more.