Enterprise Resource Planning (ERP) software has multiple features that may differ with every vendor. Some features are naturally standard across the industry. Still, several additional modules and add-ons are available on a case-by-case basis that can assist your business with specific needs.
Among these special features is ERP contract management, which speeds up manual workflows and increases revenue. Still, this isn’t a standard feature in all ERP systems, something you should be aware of when looking for potential solutions.
Understanding ERP Contract Management
ERP software with its ERP Contract Management feature is a database of information and workflows meant for automating and speeding up business processes like accounting and inventory management. Its primary advantage is that it’s a solution that works across departments and packages them together.
In simple words, ERP systems reduce communication failures and human errors that are standard in a business. Automating document movement across departments and creating a central data hub simplifies workflows and allows employees to dedicate their time to other tasks.
With that said, here is what ERP contract management does:
1. Create and Customize Contract Templates
ERP contract management software allows you to create custom contract templates to be used in different aspects of your business and along the supply chain. For instance, some companies make sales contracts for conducting business with some vendors. This cuts the time to onboard a new vendor since there is no need for a completely new contract for every deal signed.
2. Measure Impact on Sales, Billing, and Materials
Contract lifecycle management software offers visibility to how a contract impacts the other aspects of a business. This visibility guarantees that your company can adhere to a schedule and pricing amount as mandated in a contract. This is possible by integrating contract management and revenue management with accounting and sales processes.
3. Integrate Material and Service Requirements
ERP software is a centralized system meant to maintain data and conduct business processes across a company’s departments and subsets. This makes integration a key benefit linked with ERP that makes tasks like contract management way simpler.
For instance, several contract management solutions allow scope and pricing information in a contract, which is used to create a project template with integrated project management software.
4. Establish Company-Wide Contract Terms
Standard contract terms for small businesses or mid-sized enterprises assist in the coordination of base requirements. Some contract aspects that might be standardized include pricing and discounts, factors that are consistent throughout. These company-wide contract aspects allow the conversion of sales quotes to contracts while maintaining essential information like pricing and timelines.
5. Detail Cost Information
Some ERP software contains or is integrated with a financial suite, which can view the actual cost of a project in its lifecycle. This information can be used to measure how it stacks up to budgets and estimates marked in contracts. As a result, this increases awareness of all costs associated with the contract and improves its overall performance. It effectively helps reduce the number of projects that exceed the budget.
With ERP Contract Management, you can reduce risk, guarantee compliance, and maximize the use of your contract documents. It’s software that helps all businesses and organizations and allows employees to focus on more vital tasks that expand the business.
Anapact’s contract management software is built to be easy. We’re an enterprise contract lifecycle management solution created for small and mid-sized businesses. We want to help you reduce risk, ensure compliance, and make the most of your contract documents. Make the most of your contract management software and get all essentials with simple, scalable pricing. Get in touch with us to get the best automated contract management system!