In simple terms, a bottleneck occurs when demand outweighs production capacity. In contract management, the term bottleneck means that work upstream hits a point where it is constricted by the process downstream, creating a slow-down of productivity. Contract management software like Evisort helps manage the entire workflow process and alleviates bottlenecks.
In recent years, increasingly sophisticated technology has spurred the growth of complex business practices. These practices depend on contracts to thrive and grow, placing a new focus on contract management software. Evisort, with its intricate workflow management tools, is helping clients around the world maintain healthy businesses.
Contracts are the engines that drive businesses, and a good contract management platform is necessary to keep the engine running smoothly. Without dependable AI-driven software, companies will find themselves lagging behind their competitors who can manage contracts better in a fraction of the time.
Managing the lifecycle of every more complicated contract requires contract management software driven by artificial intelligence. Mistakes in contract management cost an estimated 9% of global revenue. That is a lot of money left on the table due to inefficient contract management processes. Evisort is helping companies stem those losses and solve the bottlenecks that slow growth capacity.
Causes of bottlenecks in contract management
- Lack of teamwork capability—contracts may span multiple departments in a business, and without a workflow system, bottlenecks occur when a deal gets “stuck” in one department.
- Manual review of contracts—contracts contain pages of legalese that are standard in every contract. The manual review of each contract takes copious amounts of time that could better serve other parts of the business.
- The drafting process—from the start of negotiations to the signing of a contract can take much back and forth between parties. Without an efficient contract management system that allows a quick exchange of information, drafts, and re-drafts can eat away at precious time.
- Compliance monitoring—when you finally have a completed contract, the work is only beginning. Now, the contract needs to be monitored and reviewed to make sure that all parties are remaining in compliance. Compliance tracking takes time, often requires the involvement of multiple departments, and is rife with the possibility for human error.
How can Evisort solve bottlenecks
Evisort addresses all four areas of common bottlenecks. AI-driven contract management software increases transparency in the workflow. Any person or department can see what another party is working on in the contract at any time. Workflow management helps a contract move through departments speedily, and if there is a clog in the process, it is easily identifiable.
- Evisort does away with the need for a tedious manual review of each part of a contract. The software can scan the contract and pull all essential information for a quick review, while also identifying any non-standard language that could pose a problem. Contract review that used to take days to weeks can now happen in seconds.
- The drafting process is simplified by being able to pull similar contracts and provisions within the contracts to be used as a template. Changes that are requested can be implemented, approved, and finalized in moments.
- Evisort handles compliance monitoring virtually on its own, removing the need for hands-on compliance tracking. With both standard and customized alerts, it will send alerts about any approaching deadlines or other issues with compliance.
Evisort removes the need for long manual contract reviews and data entry of existing contracts, saving valuable staff hours. Businesses with robust contact management solutions have a distinct advantage in the fast-paced world of business. Removing bottlenecks in contract management allows a faster response to changing markets, letting these businesses sail ahead of the competition.
Evisort also helps protect the hard-earned reputation of a business. Risk identification and mitigation mean fewer disappointed customers, fewer losses, and less legal exposure for a breach of contract. Evisort can also handle, and learn from, third party contracts. The software can then identify problems such as vendors who frequently miss delivery deadlines or other contractual obligations.