As the speed of business increases and B2B processes become more streamlined, companies continue to face risks throughout the procurement cycle. Despite the emergence of more efficient acquisition processes, human error remains at the heart of most contract-related risks—and those mistakes can not only cost a company a lot of money, but also the trust and respect of crucial business partners. Luckily, contract automation solutions can reduce the most common risks when dealing with contracts. By mitigating human error, you can focus on being the first and the fastest to turn around contracts, as well as minimize confusion and stress during negotiations.
Whether it’s incomplete paperwork or unfavorable terms, the use of a contract automation solution is a simple way to reduce risk by eliminating human error. When a contract contains errors, it opens a company up to risk and liability – and the longer the negotiation cycle is, the more likely it is that errors will occur. This creates risks such as outdated versions being passed along to suppliers or, worse yet, deals falling through due to missed follow-ups or lack of information sharing due to turnover.
Reliable contract automation software helps you mitigate this danger by storing all the contract information in one central hub, which is only accessible to authorized individuals. This system helps procurement teams eliminate the worries about correct contract versions, lost edits, and other mistakes that could affect their success rate and lead to lengthy renegotiations.
The negotiation process can be lengthy – and making sure your company’s needs are fulfilled should be your top priority. Occasionally, procurement teams might feel pressured to make a quick decision simply because of what’s in front of them. Research shows that 74% of B2B buyers choose the rep that was the first to add value and insight, proving that gaining the upper hand and being the first to turnaround contracts helps companies win business.
Clerical work shouldn’t bog you down from doing your job, and doing it well. With contract automation, you can easily edit contracts, route back for changes, and ask questions about specific line items. Remove any doubt that you’re getting the best possible deal.
This transparency will serve to boost productivity. Only 2% of B2B sales occur during the first meeting, meaning that transparency and efficiency can go a long way in speeding up the contract process. In order to maximize efficiency, procurement personnel need to spend less time looking for documents – and more time focusing on getting the right products at the right time.
Contract automation solutions enable procurement teams to:
- Cut back on endless email chains and improve visibility throughout contract negotiation;
- Reduce risks by giving you a clear picture of versions, edits, and line items;
- Easily ask questions about specific items;
- And keep all communications easy to follow.
This “unclogging” of the procurement pipeline is a crucial way to reduce risk for your company – and boost productivity at the same time.
As business processes continue to become more efficient and deals begin to close at even faster rates, reducing risk is one of the most important safeguards for a business. With an efficient and reliable workflow automation solution in their toolbox, businesses have the equipment they need to protect against miscommunication, as well as get in front of new potential business partners first with faster contract turnaround and increased productivity.
About the Author: Jake Filloramo is a Business Development Manager at OnTask, and he is responsible for shaping the go to market strategy, driving customer adoption and growing demand. Prior to OnTask, he’s helped grow several early-stage startups and operate a local tech incubator in Tampa, FL. You can find Jake hiking, kayaking, playing basketball and connecting entrepreneurs in the startup community.