Contract development and management are a critical part of every organization, especially those that frequently handle complex contracts and legal agreements. This is why there are so many organizations that specialize in contract development and management services. The work done by contract development and management organizations requires them to have a dependable enterprise resource planning (ERP) system that can speed up manual workflows and boost revenue.
Most ERP systems come with a contract development feature designed to perform numerous contract-related tasks. For instance, most life science ERP solutions can perform unique contract tracking functions with fully configurable fields. Additionally, the best ERP system for manufacturing should help you develop contracts with important details such as accurate schedules and cost-effective pricing.
However, this feature isn’t a standard requirement for all ERP systems. So, when you’re looking for the best ERP system for a contract research organization, make sure it has all the necessary features to perform its intended functions effectively.
What can ERP systems do for contract development organizations to make their operations more reliable and effective? Read on to find out.
What Is Contract Development?
Contract development is the process of interpreting the outlined details in pre-contract meetings and drafting a contract accordingly. Each contract must clearly outline what each party gets out of the arrangement–before you develop the final contract, the parties must meet and discuss the various issues to be covered in the contract, including needs, responsibilities, and terms and conditions of the contract.
As a contract development organization, your main areas of focus will be to develop and manage the contract, which includes drafting and articulating the terms of the agreement. Contract management works the same way as an online data filing system because it enables you to develop templates, manage contracts, and evaluate the impact the contract will have on sales revenue.
Because contracts are involved in every facet of an enterprise, including vendor relations, sales, human resources, and anything in between, every organization needs a simple and organized way to develop and manage its contracts. So, contract development organizations use ERP solutions to deliver quick and reliable services.
What Does an ERP System Do for Contract Development Organizations?
The importance of an ERP system in contract development and management cannot be overstated, especially because the success of a business largely depends on the effectiveness of the contracts entered. A poorly drafted contract can cause an organization to lose thousands, if not millions, of dollars because of a minor technicality. Every contract you develop will affect your business’s profitability in a big way because it focuses on revenue and expenditure.
An effective contract, on the other hand, will create a strong business relationship and allow greater profitability in the long run; the only way to achieve this is to deploy the right contract development ERP system. Here are the main functions of an ERP system in a contract development organization:
Developing and Customizing Contract Templates
An ERP system enables contract development organizations to create customized contract templates that can be used in various areas of a business. For instance, you can use it to create an ordinary sales contract for carrying out business with vendors of different sizes. This way, you won’t have to create a new contract every time you get a new vendor.
Establishing Contract Terms for the Entire Organization
It’s easy to coordinate your base requirement when you have shared contract terms for the entire enterprise. For instance, prices and discounts are easy to standardize with an ERP system because they’re likely to remain consistent across the entire enterprise. You can also turn sales quotes into contracts without changing basic details like prices and timelines.
Evaluating the Impact of the Contract on Sales and Billing
With a contract ERP system, you get to see how a contract impacts other areas of the business. Therefore, you can ensure that the organization sticks to the available schedule and prices as stipulated in the contract.
Integrating Material and Service Needs
Integration makes contract management easy because it enables you to create project templates using the information included in the contract.
All in all, it’s of the utmost importance to determine the best ERP system for your contract development organization by assessing the strength of all these aspects. This way, you can be sure your system is making your operations as effective and efficient as possible on a day-to-day basis.