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It’s soon 2025: Why email is no longer enough for contract communication

The limitations of email in contract management

For years, email has been the go-to tool for contract communication. It’s familiar, widely used, and easy to access. However, as the business landscape evolves, it’s becoming increasingly clear that email alone is not enough to handle the complexities of modern contract management. The limitations of email can lead to delays, miscommunications, and even security risks that businesses cannot afford.

Inefficiencies and risks in email communication

While email is convenient, it has significant drawbacks when it comes to managing contracts. According to the report, 75% of respondents still rely on email as a primary method of communication for contracts. However, this reliance comes with risks. Email threads can become long and convoluted, making it difficult to track changes or ensure that everyone is on the same page. This can lead to misunderstandings, missed deadlines, and even lost deals.

Furthermore, email is not the most secure method for sharing sensitive information. The risk of unauthorized access, data breaches, and phishing attacks is ever-present. As businesses handle increasingly sensitive data, relying on email for contract communication can expose them to significant security threats.

Read also: How contract management is essential for your business?

The benefits of dedicated contract management systems

Given the limitations of email, it’s no surprise that more businesses are turning to dedicated contract management systems. These platforms are designed to handle the specific needs of contract communication, offering enhanced security, better organization, and more efficient workflows.

Streamlining communication with centralized systems

A contract management system centralizes all contract-related communication in one secure platform. This eliminates the confusion of endless email threads and ensures that all parties have access to the most up-to-date information. According to the report, 54% of respondents store their contracts electronically on their computer or in the cloud, often using the same software for both contract signing and creation. By using a dedicated system, you can keep everything organized and easily accessible, reducing the risk of errors or delays.

Enhancing security and compliance

Security is a major concern for businesses, and contract management systems offer advanced protections that email simply cannot match. These platforms are designed with security in mind, incorporating encryption, access controls, and audit trails to protect sensitive information. The report highlights that over 80% of respondents trust the security of electronic signatures, which are often integrated into these systems. By moving away from email and adopting a dedicated platform, businesses can better protect their contracts and ensure compliance with legal and regulatory requirements.

The role of automation in improving contract workflows

One of the key advantages of using a contract management system is the ability to automate various aspects of the contract lifecycle. Automation not only saves time but also reduces the risk of human error, making the entire process more efficient and reliable.

Speeding up the contract lifecycle

Automation can significantly accelerate the contract lifecycle, from initial drafting to final approval. The report notes that 75% of respondents can get a contract signed within one week, but only 17% manage to do so in less than a day. With automation, tasks like sending reminders, tracking approvals, and generating reports can be done automatically, freeing up time for more strategic activities and helping businesses close deals faster.

Reducing errors and improving accuracy

Manual processes are prone to errors—whether it’s a typo in a contract or a missed signature. Automation helps minimize these mistakes by ensuring that all steps are completed accurately and on time. This not only improves the quality of your contracts but also reduces the risk of costly delays or disputes. By adopting a contract management system with automation capabilities, businesses can achieve greater accuracy and efficiency throughout the contract process.

Read also: Top 10 contract management software in 2024

The importance of integrating contract management with other business tools

To truly maximize the benefits of digital contract management, it’s essential to integrate these systems with other tools your business uses, such as Customer Relationship Management (CRM) platforms and project management software. Integration streamlines workflows, enhances collaboration, and ensures that all relevant information is easily accessible.

Centralizing data for better decision-making

Integration allows businesses to centralize all contract-related data within their existing systems. For example, by linking your contract management system with your CRM, you can ensure that all customer information, including contracts, is in one place. This not only makes it easier to manage contracts but also provides valuable insights that can inform business decisions. The report shows that 28% of respondents view the ability to integrate contracts into their CRM or platform of choice as a critical feature for future contracts.

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Enhancing collaboration across teams

When contract management is integrated with other business tools, it improves collaboration across teams. Sales, legal, procurement, and other departments can all access the same information, reducing silos and ensuring that everyone is working towards the same goals. This collaborative approach leads to faster, more effective contract management, ultimately benefiting the entire organization.

Key takeaways: Moving away from email for contract communication

As the business world evolves, it’s clear that email is no longer sufficient for managing the complexities of contract communication. Here’s why it’s time to move beyond email and adopt dedicated contract management systems:

  • Address inefficiencies and risks
    Email communication is prone to misunderstandings and security threats. A dedicated contract management system offers a more secure and organized way to handle contracts.
  • Streamline communication
    Centralizing contract-related communication in one platform ensures that everyone has access to the most up-to-date information, reducing errors and delays.
  • Leverage automation
    Automating tasks in the contract lifecycle improves efficiency and accuracy, helping you close deals faster.
  • Integrate with other tools
    Integrating your contract management system with CRM and other business tools enhances collaboration and provides valuable insights.

By moving beyond email and embracing a dedicated contract management system, your business can improve efficiency, enhance security, and ensure more successful contract management.

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