Automation has long been a key topic in many areas of the economy. Automated processes are already firmly established in production, logistics and administration and are increasing efficiency and reducing costs. However, the potential of automation is not limited to physical work processes. Modern technologies, including contract management tools, also offer far-reaching opportunities for optimization in the area of contract processing - an area that is often still characterized by manual and time-consuming processes. Contract automation is therefore not just a trend, but a decisive step into the future.
In a world where contracts are negotiated, concluded and updated on a daily basis, they also need to be managed proactively. The automation of contract processes through contract management software offers enormous opportunities here. It reduces human error, ensures greater efficiency and creates more transparency and clarity in contract management. By using intelligent software, routine tasks can be completed faster and without errors - from contract creation and approval to administration and archiving. This not only means less administrative work, but also a noticeable professionalization of processes. Find out below which contract lifecycle processes you can automate and how.
The automation of contract creation offers great potential, especially for standardized contracts. Templates make it possible to create contracts efficiently by standardizing recurring elements and structural specifications. For contracts that hardly change in terms of content, placeholders can be used to insert variable text fields into which information such as names, addresses and contract data are automatically inserted, provided they have previously been stored in the system (e.g. in the address book as a contact). This saves time and reduces errors, especially with a large number of contracts.
The concept of "conditional logic" in software allows contracts to be flexibly adapted to specific criteria. Depending on defined conditions, such as the contract value or contract type, certain clauses can be automatically added or removed. This ensures individualization without having to redraw the entire contract.
An automated approval workflow in contract software speeds up the approval of contracts by routing the process between the parties involved without manual intervention. As soon as one party has approved the contract, it is automatically sent to the next instance. This avoids delays and time-consuming email exchanges.
Version control is another important aspect of automation. Changes to a contract can be automatically documented and versioned so that it is always clear which version is the current one. This reduces the risk of misunderstandings or the use of outdated contract versions.
Companies can also benefit from automation in the signature process by using contract management software. Such software makes it possible to track the signature status and automatically send signature requests directly to the specified parties. This eliminates manual effort, such as sending documents by hand or asking for outstanding signatures, and makes the entire process more efficient and transparent.
In the area of contract management, a contract management solution offers the option of automatically analyzing contract data and providing relevant information such as deadlines, terms or contract values. This facilitates administration and the creation of reports without the need for manual intervention.
Another process that can be automated is deadline monitoring. Systems can be configured to send timely reminders of upcoming contract renewals or notice periods. In some cases, an automatic termination can be prepared and sent as soon as a deadline is reached.
The archiving of contracts is often subject to different legal retention periods (e.g. 6 or 10 years for tax-relevant business documents). The automation options of software can make it possible to define rules that ensure that different types of contracts are archived in an audit-proof manner in accordance with their retention obligations and deleted after the deadlines have expired. The automatic analysis of contract content can also be used here to ensure that all requirements are met. Automation minimizes the risk of non-compliance, as retention periods are monitored and contract content is automatically analyzed to ensure auditability and compliance with all requirements.
Ultimately, contract management software can automate some essential steps so that recruitment processes run more smoothly, contracts are easier to find, cost streams can be better identified and risks better managed, and companies can use their resources for more important tasks to reach their full potential.
Before companies start to automate their contract processes with the help of software, they should think about which processes are particularly suitable for this. Not every process needs to be automated, but repetitive, time-consuming or error-prone activities in particular offer great potential for automation.
Complex and error-prone processes:
Many contract processes, such as the manual calculation of contract conditions, are error-prone and time-consuming. In particular, errors can occur when calculating payment terms, discounts or graduated prices if these are linked to specific periods or volumes. For example, it can easily happen with service contracts or supply contracts that periods are calculated incorrectly or graduated prices are applied incorrectly. Contract management software can significantly reduce this risk by automating and organizing the calculation of these conditions and ensuring that all contract terms are applied correctly.
Repetitive tasks:
Tasks that always follow the same patterns are predestined for automation. A classic example is the management of maintenance contracts. This includes entering and managing contact data and entering deadlines, such as recurring maintenance dates or notice periods. Contract management tools take on these tasks automatically: they save all relevant information, automatically create reminders based on the stored regulations and ensure that deadlines are met on time without having to set a new reminder manually. Special conditions are also stored once in the software so that they do not have to be taken into account again for each contract. This ensures that processes run efficiently and reliably.
Processes with many versions and a high level of collaboration:
Contract negotiations and revisions often require several versions of a document and the collaboration of different departments or parties. In the case of sales contracts, for example, the draft is often sent back and forth several times between the seller, the buyer and the legal departments. Even in the case of renegotiation, it is important to know which is the latest version to ensure that all parties use the final negotiated document as a binding basis. Automating appropriate contract management software simplifies these processes through centralized versioning and automatic notifications so that no change is overlooked.
In summary, it is clear that some areas of the contract process can be automated with the help of contract management software. You can find out what this can look like in concrete terms below.
The possibilities of contract automation are diverse and offer enormous potential for saving time and resources. Nevertheless, human intervention remains indispensable for important decisions and the final review.
Nowadays, many companies use various systems to optimize their daily operational tasks and processes. Despite these optimizations, information often needs to be transferred and updated manually. This is exactly where the API comes into play: it enables seamless integration between the contract management software and other software solutions, which significantly expands the automation options and considerably reduces manual work steps.
APIs (Application Programming Interfaces) play a central role in the automation of contract processes, especially if various other software solutions are used in addition to the contract management software. They enable the automated exchange of data between different systems without this having to be done manually. Especially in areas such as contract management, contract creation or integration with accounting and CRM systems, APIs help to automate processes seamlessly and make them more efficient.
An API is basically a middleman that enables one piece of software to communicate with another. When one piece of software - the client - needs information, it sends a request to another piece of software - the server. The server processes this request and returns the requested data.
A simple example: When you open a weather app on your smartphone, this app uses an API to ask a weather database what the current weather is like at your location. The app is the client and sends a request via an API to a weather database - the server. The weather database sends the requested information back to the app, which then displays it in a comprehensible form.
APIs play a crucial role when different systems such as contract management, cash flow management or accounting software need to be connected. Let's take the example of a CFO in a medium-sized company that uses both a cash flow management tool and contract management software. When a new supplier contract is signed in the contract management software, the company wants the payment terms and payment amounts to be automatically transferred to the cash flow management tool in order to accurately plan future cash flow.
In this case, the cash flow management tool sends a request to the contract management software to retrieve data such as payment deadlines, amounts and payment cycles. This information is automatically integrated into the cash flow management tool so that the company's liquidity plan is always up to date. Changes, such as the adjustment of deadlines or payment amounts, are also synchronized so that both systems are always up to date and the CFO has a clear overview of future cash flows.
This automated data flow not only reduces the workload, but also ensures that no important information is lost or transmitted incorrectly.
The automation of contract processes through contract management software offers companies a decisive advantage in terms of efficiency, error reduction and transparency. Automated templates, digital signatures, deadline monitoring and seamless workflows can significantly simplify recurring tasks. This leads to a noticeable reduction in the workload of employees and a professionalization of processes without having to forego necessary human decisions. Companies that integrate automation into their contract processes can save time and resources while improving the quality and security of their contracts.
ContractHero enables companies to create contracts directly and use templates where existing contact details are automatically filled in to minimize errors. Contracts can be signed digitally and then managed efficiently. Artificial intelligence (AI) and OCR technology are used to analyze contracts, generate reports and send deadline reminders automatically. Thanks to the secure API integration, ContractHero can be easily linked to other software solutions so that data is automatically exchanged and processes are further automated. ContractHero thus offers a comprehensive solution that supports companies in taking their contract management into the future.
.svg){kind=logo}
_EasiestSetup_EaseOfSetup.png)
