Contract Management Software Optimizes Contract Routing Process
Posted by Melanie Aizer on Tue, Jun 07, 2011 @ 01:44 PM
Contract management software optimizes every step of the process from contract creation, through distribution, completion, and application of business rules, to filing and retrieval. It improves profit and cash flow by dramatically reducing the number of people required to administer contracts and by speeding up the approval process. To understand how organizations are benefiting from this advancement in digital technology, we need to take a closer look at each step of the contract workflow process.
Step one: Prepare the contracts
Step two: Distribute the contracts
Step three: Business process — route the contracts
Many companies in industries such as merchant card services, securities brokerages, insurance brokers, etc., publish high volumes of contracts every week. Manually routing contracts to the correct signatories, in the correct order, and re-directing as required, by any other business rule is labor-intensive.
Routing
Imagine an insurance broker accepting new applications. First, applicant information has to be completed; it goes to the broker for error-checking, then on to the underwriter for approval, then back to the individual for final sign-off. At this point, a number of supporting documents — void check, automatic withdrawal approval, and so on, must be attached. Then the package goes to the broker for storage with a copy to the underwriter. All this routing uses up valuable human resources and is prone to error.
Contract management software automates this entire process — not only driving the human resource cost down, but also providing a superior customer experience that helps to reduce the number of transactions that are abandoned.
Business flow rules
Contract routing can be further complicated by business rules. For example, the insurance application may go to an internal employee with a pricing matrix, but if the characteristics of the individual are out of the norm, the application may need to go to a different department for special pricing. Once again, this causes unnecessary costs and delays in processing the application.
Contract management software reduces costs by automating the process.
Discover How Your Company Can Easily Automate Contract Workflows - Immediately Improving Operational Margins
Download this Complimentary White Paper Today & Discover:
- A detailed cost-savings analysis of transitioning to digital contract management technology
- How to save 40% of labor costs required to enter, verify, correct and re-key contract data
- How to eliminate all mail and courier costs
- How to minimize storage and retrieval costs to only 10%
