{"id":79,"date":"2025-12-11T08:30:00","date_gmt":"2025-12-11T07:30:00","guid":{"rendered":"https:\/\/www.d-velop.com\/blog\/?p=79"},"modified":"2025-12-11T08:44:09","modified_gmt":"2025-12-11T07:44:09","slug":"contract-management-process","status":"publish","type":"post","link":"https:\/\/www.d-velop.com\/blog\/thinking-digitally\/contract-management-process\/","title":{"rendered":"Improving the contract management process? Only possible with digitalisation!"},"content":{"rendered":"\n

Improving contract management processes? A goal for every executive. Contract inefficiencies are not only time-consuming but also costly. A study by the World Commerce & Contracting Institute<\/a> involving over 1,200 companies identified more than 40 conflict points throughout the contract management process that lead to value loss and financial setbacks. For example, the total costs for contract execution and associated value losses account for 2\u20134% of revenue in an average consumer goods company. In industries with high-value investment projects, such as construction or aviation, this share rises to over 15%.<\/p>\n\n\n\n

The good news: companies that adopt contract management software<\/a> early can minimise these losses. In the study, 65% of respondents reported investing in contract management technologies to enable employees to work more efficiently, reduce risks such as missed deadlines, and achieve better financial results.<\/p>\n\n\n\n

This blog article explains exactly how the contract management process works and how it can be improved through digitalisation.<\/p>\n\n\n\n

<\/span>Control your contracts, control your business!<\/span><\/h2>\n\n\n\n

Contracts form the foundation of nearly all business relationships \u2013 from suppliers to customers to partners. Without clear structures and automated workflows, deadlines can be missed, compliance breaches may occur, and unnecessary costs can arise due to inefficient manual processes. Professional contract management ensures centralised access, better control over contract content, and faster decision-making. It also allows for thorough analysis of contract data to identify strategic opportunities and realise cost savings. In short: companies that have their contracts under control run their business more efficiently, securely, and sustainably.<\/p>\n\n\n\n

It is therefore highly recommended to continuously improve contract management through the following steps:<\/p>\n\n\n\n

    \n
  1. Drafting the contract<\/li>\n\n\n\n
  2. Negotiating the contract<\/li>\n\n\n\n
  3. Reviewing the contract<\/li>\n\n\n\n
  4. Approving the contract<\/li>\n\n\n\n
  5. Signing the contract<\/li>\n\n\n\n
  6. Managing the contract<\/li>\n\n\n\n
  7. Archiving the contract<\/li>\n<\/ol>\n\n\n\n

    <\/span>How a contract management process works<\/span><\/h2>\n\n\n\n

    Effective contract management supports all phases of a contract\u2019s lifecycle<\/a>, from initiating a business relationship to implementation, administration, and final archiving.<\/p>\n\n\n\n

    \"Contract\n\t\t\t\n\t\t\t\t\n\t\t\t<\/svg>\n\t\t<\/button><\/figure>\n\n\n\n

    1. Initiating the Contract<\/h3>\n\n\n\n

    The contract management process begins with the initiation of a contractual relationship. Once two parties start discussions, all relevant information \u2013 such as a draft contract and contact persons at a customer or supplier \u2013 should be compiled in a single file. This creates transparency, and every employee has an overview of all relevant information from the very start of the business relationship.<\/p>\n\n\n\n

    2. Drafting and Negotiating the Contract<\/h3>\n\n\n\n

    Once a business relationship develops, the next step is drafting the contract. Contract management software allows companies to access centralised templates, enabling faster preparation of contract drafts. Multiple rounds of negotiation are often required before final signature, during which the contract draft and its content are discussed. In a centralised contract management system, all changes to the draft can be tracked using version history.<\/p>\n\n\n\n

    3. Reviewing and 4. Approving the Contract<\/h3>\n\n\n\n

    After drafting and negotiation, the contract is reviewed and approved. This can be a multi-step process involving employees and managers from different departments. In a digital contract management process, these review steps are managed through workflows. The advantage is that workflows record who approved or commented on a contract at each stage.<\/p>\n\n\n\n

    5. Signing the Contract<\/h3>\n\n\n\n

    Next comes contract signing. The approved document is sent to the contracting party, and the signed contract is stored in the relevant contract file. Using a centralised contract management system ensures that all departments always have the same information about the contract\u2019s status and current version.<\/p>\n\n\n\n

      <\/ol>\n\n\n\n

      Why you should use digital signatures in contract maanagement<\/h4>\n\n\n\n

      Digital signatures reduce costs and effort while offering additional benefits:<\/p>\n\n\n\n