Why You Need a Electronic Contract Repository Solution

The business world has been changing rapidly over the last decade, and that evolution has only been getting faster. It’s no wonder that businesses have begun to focus more on digital transformation (DX). The next step in DX at your company should be a contract repository. 

To see first hand how SignTime’s contract repository can help your DX efforts, sign up for a free trial today.

What is contract management?

Contract management is the process of guiding a contract through all the stages of the contract lifecycle. While most people are familiar with the middle stages of the contract lifecycle, such as negotiating and signing a contract, the whole contract lifecycle is much longer.

Indeed, contract management begins long before a contract is signed and can continue for years after all obligations of the contract have been met. As you can imagine, contract management is no easy task. 

That’s why companies turn to contract management software. 

What is contract management software?

Contract management software (CMS) is simply a suite of tools that helps guide companies through the entire contract management workflow. 

While you might not have used contract management software to draft a contract, you’ve likely experienced it as a signatory. One of the most visible features of contract management software is e-signatures. 

E-signatures are the digital version of a handwritten signature. In nearly all countries and for almost all contracts, they are legally considered equivalent to a pen-and-paper signature. They are also gaining in popularity as people become comfortable using them. 

However, contract management software goes far beyond e-signatures. We go through all of the needed features in contract management software below, but first let’s discuss the central feature: contract repositories. 

Learn more about everything you need to know about electronic contracts.

What is a contract repository?

“Repository” is a fancy word for storage solution. A contract repository is a place where you store contracts. Much like everything else over the last twenty years, contract repositories have changed a lot. Let’s take a closer look at a modern contract repository.

Traditional vs. electronic contract repository

The traditional contract repository is a filing cabinet. This comes with very few advantages and a lot of disadvantages. However, previous generations didn’t have any other options. The technology required for better, more secure contract repositories was not yet available. 

Filing cabinets take up a lot of space. In fact, large companies might rent or own an entire separate property just to house all of their important documents. This is a huge expense. 

Then, there’s the cost of using such paper filing systems as a contract repository. Imagine you have a stack of 20 important documents. How long would it take you to find the correct file, assuming they are in alphabetical order? 

What if the stack of contracts was 1000 documents, 10,000 documents, or even more? What if someone accidentally misfiled the document under the wrong letter?

This is how filing cabinets, even when they are used correctly and care is taken to keep them organized, become unruly for large organizations. 

Next, there are all the associated risks of the physical world. While we might not think of these risks as they are part of our daily lives, they are very real. Fires, floods, and burglaries can happen. Disgruntled employees can take important documents on their way out the door. 

This doesn’t happen with modern electronic contract repositories. Let’s take a look.

Digital vs. cloud contract repository

Electronic contract repositories are a way of keeping documents organized and secure on a computer. While not all electronic contract repositories are cloud contract repositories, the terms are often used interchangeably. 

In fact, most electronic contract repositories are cloud contract repositories. However, there are exceptions. For example, some smaller companies might keep a running list of all contracts organized in an Microsoft Excel or Google Sheet spreadsheet with links to each individual document.

That’s ok, but it isn’t ideal. There are obvious security risks. You need to either allow everyone in the company to have access to the files, or have someone in charge of searching and retrieving documents, which can be a bottleneck. 

It’s also just a contract repository without all of the other features associated with contract management software.

So what about a cloud contract repository?

Cloud computing has revolutionized how companies can do business. This has been a great boon for many industries with the advent of digital transformation (DX). Companies are now looking towards cloud options to save money, help generate new revenue, or just make life a bit easier and more efficient for employees.

Cloud contract repositories are a great example of DX. Companies can draft, send, e-sign, store, and find documents from anywhere in a secure manner. 

Here’s a quick peek at the SignTime cloud contract repository. 

SignTime cloud contract repository

SignTime offers all of the functionality required in contract management software (CMS). That includes a cloud contract repository built with business in mind. While we go into detail about all the different features you need in CMS below, here are a couple of the things that SignTime offers in their contract repository:

• Multiple roles: Assign different roles to different users in your business so they can access the files they need while restricting access to other files.
• Tagging system: Tag documents with metadata, such as the names of signatories, the date the contract was signed, the date the contract is up for renewal, and the contract type. This makes it possible to find any document in a few seconds.
• Digitization of old documents: Now, you can digitize your old documents so you gain the benefits of a contract repository not just for your new contracts but for all of your previous agreements as well.
• Advanced security features: Security features begin during the e-signature process. You can have signatories upload supporting documents to confirm their identity. Then, contracts are stored in a secure cloud contract repository. For added security, there is the option to use blockchain technology.

To see first hand how SignTime’s contract repository can help your DX efforts, sign up for a free trial today.

Why do companies need a electronic contract repository?

While electronic contract repositories offer a lot of great features, the question of value remains: Do companies really need to invest in a electronic contract repository? 

This is really a question for each individual company, but when you consider that SignTime offers plans starting as low as $9/month (or even lower with an annual subscription), the value gained is substantial.

Even freelancers will find it easy to gain positive ROI from a single added deal or a better relationship with one key client.

If you answer yes to any of the following questions, then it is worth signing up for the SignTime free trial:

• Do you want to close sales deals while still on the call with clients?
• Do you regularly use contract templates?
• Do you have international clients, which makes signing paper contracts time consuming?
• Do you regularly require employees to sign contracts, such as NDAs or annual employment contracts?
• Do you find it difficult to retrieve documents when they are needed?
• Are you spending money on property to store paper contracts?
• Do you find it difficult to keep track of who has or hasn’t signed a contract?
• Has your business gone remote or hybrid? 
• Do you need to get the same contract signed by dozens or hundreds of people?
• Do you want to shorten your sales cycle? 
• Are you concerned about the safety or security of your important documents?
• Do you want to facilitate teamwork across your business? 

What is contract lifecycle management (CLM)?

Contract lifecycle management (CLM) is often used synonymously with contract management or contract management software (CMS). The contract lifecycle encompasses all of the stages of contracting, from recognizing the need for a contract to contract completion. 

Contract lifecycle management is then overseeing all of the processes involved in getting a contract written, signed, and fulfilled. 

Let’s take a look at the stages of the contract lifecycle.

9 stages of the contract lifecycle

There are several different models of the contract lifecycle. The most common ones have five, seven, or nine stages. While the vast majority of the differences are just whether stages are split or not, the nine-stage model does begin a bit earlier in the lifecycle. 

The recognition that a contract is needed is an important and distinct stage from contract authoring and contract negotiation. That’s why we choose the nine-stage contract lifecycle here:

• Stage 1: Contract request
• Stage 2: Contract authoring 
• Stage 3: Contract negotiation
• Stage 4: Approval and legal review
• Stage 5: Execution and e-signing
• Stage 6: Contract storage
• Stage 7: Find and consult contracts
• Stage 8: User activity and reporting
• Stage 9: Contract renewal, renegotiation, or completion

Stage 1: Contract request

At this stage, there’s simply a recognition that the parties need a contract. One common example comes from sales contracts. During a demo, the salesperson and prospective client will agree that it is worth drafting an agreement. 

In some cases, the contract can be formalized. For example, there might be a signed price quote or an offer of employment letter.

Stage 2: Contract authoring 

Now that you have a formal or informal agreement that a contract is needed, it’s time to write the contract. While some contracts are “boilerplate” and only require adding names and dates, others require a lot more personalization. 

That leads to the following stage.

Stage 3: Contract negotiation

Some contracts can skip this stage because they are basic templates with fill-in-the-blank information. They can also skip Stage 4 for the same reason. This is also why SignTime has a templating function, so you can store your boilerplate contracts and reuse them without wasting time drafting new documents.

However, some contracts require complicated negotiations. Not only price, but also terms, obligations, reporting mechanisms, and more can be negotiated. The more complex the negotiation process is, the more likely it is that contracts will need to go through an approval and legal review.

Stage 4: Approval and legal review

When many terms change during the negotiation process, it’s possible that vague or unenforceable language will creep into the contract. Salespeople aren’t usually lawyers, so these kinds of issues can arise.

That’s why contracts need to go through a legal review, where the people in charge, as well as their legal counsel, check to make sure the contract is written as intended. 

Stage 5: Execution and e-signing

This is the stage that most people are familiar with. A contract has been agreed upon by all parties and now needs to be signed. This was once the slowest part of the entire contracting process.

However, e-signatures now make it possible to get through the signature and execution process in minutes. The parties to the agreement can e-sign the document from anywhere on a laptop or mobile device. 

SignTime’s mass send feature can even help you send the same contract to hundreds of people at once. Furthermore, its reporting feature lets you know who has signed and who hasn’t yet. You can even have automated reminders sent to those who haven’t signed.

All of this means your contracts are returned faster. That’s great for HR, finance, and especially sales.

To see why SignTime is for sales, sign up for a free trial today.

Stage 6: Contract storage

Here is where the cloud contract repository comes in. Now, instead of placing documents in a filing cabinet, they are uploaded to a secure contract repository. This leads to several clear advantages over traditional contract repositories.

First, documents are safe and secure. Second, documents can be accessed from anywhere on a laptop or mobile phone, so they are always within reach when you need them. 

Third, collaboration is made easy with multiple logins, each with custom permissions. 

Finally, the documents can be found easily, when it’s time for Stage 7 (and Stage 9, too).

Stage 7: Find and consult contracts

Here is where recording metadata comes in handy. Metadata is basically information about information, and it can help you keep track of all your documents.

SignTime allows you to tag your contracts with multiple attributes so you can search for several different features at once. Here are some common attributes assigned to contracts:

• Names of signatories
• Contract type
• Year contract was signed
• Year contract is up for renewal

Compare this to a filing cabinet which only sorts by a single characteristic, such as “alphabetical”. Now, typing in multiple features pulls up the correct file in seconds. 

Stage 8: User activity and reporting

Now that you have a signed document securely stored in your electronic contract repository, the real work begins. All of the duties and obligations outlined in the contract need to be performed. 

Most contracts also have specific tracking and reporting processes laid out so that all parties are informed as work is completed. 

Stage 9: Contract renewal, renegotiation, or completion

Contracts eventually come to an end. There are three basic ways contracts are completed. They can come up for (automated) renewal, they can prompt renegotiation, or they can be canceled/completed.

Note that, even after a contract is completed, it might still be necessary to hold onto the contract for the personal records of your company. This is another reason that a electronic contract repository is so valuable. 

Now you can keep completed contracts securely in the cloud for years instead of in filing cabinets that take up expensive real estate. 

What features do you need in contract management software?

Contract repositories are an important utility for modern businesses. In fact, for proper contract repository management, you need a contract management software package.

Contract management software (CMS) helps companies manage the entire contracting process. That includes not only a contract repository and e-signature system but so much more.

While every business has different needs and a different budget, there are some essential features that you should look for in contract management software.

Here are the essential features of any contract management software.

1. Free trial

As mentioned several times above, every company has its own needs for contract management software. They also have different budgets. While a free trial isn’t really a platform feature, it is something you should look for when searching for contract management software. 

The try-then-buy approach works well for software because companies need to see how specific features work. It isn’t just whether the feature exists or not, but how easy it is to use and whether it fits within established workflows. 

That’s why SignTime offers a free trial. With many options available, it’s important that you like the features and are comfortable with the platform before you sign on with a contract management software solution.

To see the value of SignTime’s content repository, sign up for a free trial today.

2. Searchable and secure contract repository

This is the big one. The contract repository is usually why companies go in search of contract management software. While there are some free, albeit limited, e-signature options available, contract repositories require a subscription. 

Therefore, when looking for contract management software, companies tend to focus on the quality of the contract repository. Two things come to mind here: searchable and secure. 

Searchable contract repository

Large companies tend to have many signed contracts. In fact, the number of contracts a company signs can increase far more quickly than the speed at which a company grows. 

Here’s a simple example: 

• A company with 10 employees may not bother having employees sign employment contracts. 
• A company with 100 employees will likely have employees sign employment contracts. 
• A company with 1000 employees will likely have employees sign employment contracts, along with NDAs (non-disclosure agreements), NCAs (non-compete agreements), equipment borrowing agreements (for a company phone, laptop, or car), and so on. 

What would be 0 and 100 contracts for small- and medium-sized companies quickly swells to >10,000 contracts for a large company. 

This is where tagging documents with metadata becomes helpful.

SignTime offers an advanced tagging system. Every document can be tagged with multiple characteristics so that files can be found quickly. Here are some of the tags commonly used by SignTime customers:

• Names
• Contract type
• Year contract was signed
• Year contract is up for renewal

Additionally, SignTime allows you to digitize all of your old paper contracts, saving you even more space, money, and time.

Secure contract repository

The other half of a good electronic contract repository is security. Security means different things to different businesses based on what they are storing. If you are dealing with unknown parties, then you want to be able to request the upload of identifying documents along with e-signatures.

The cloud contract repository itself needs to have advanced security features in place. For those who need even more security, SignTime has an optional blockchain integration.

3. Notifications and reporting 

For any company that sends out a lot of contracts, reporting is mandatory. Contract management software should be able to tell you who has signed a contract and when, as well as who hasn’t yet. 

SignTime goes one step further. You can set up automated reminders for people to e-sign contracts so those who are slow to sign documents are gently nudged until they complete the task.

4. Multiple users and roles 

Every department of a big company can use electronic contracts. However, a salesperson and the head of HR do not need access to the same documents. In fact, giving access to all files to everyone would be a security risk. 

SignTime offers multiple roles so everyone has access to the files they need, but others are protected from prying eyes. This is a great balance between an open and collaborative platform and a secure electronic contract repository that keeps your company’s private documents safe.

5. Contract templating and drafting

Templates are a great way to save time when dealing with common contracts. Instead of uploading similar contracts for each agreement, you can reuse the same documents. 

SignTime allows you to add easy-to-use fields, including names, signatures, and dates. This saves time when writing and finalizing contracts. 

The next function is a major time saver as well.

6. Mass send

Many companies experience the need for several people to sign the same contract. SignTime allows you to send the same contract to hundreds of people.

Temple University (Japan Campus) used this function to get all of its professors to update their contracts. With over 100 signatures required for this annual task, HR saved days of labor with the click of the button.

C.S.I. Thailand has the same experience. Thailand’s government instituted new rules about the storage of private information. SignTime helps keep that information safe. It also drastically decreases the time it takes for over 300 employees to update their signatures, something that must be done regularly.

The reporting functions mentioned above are even more valuable when using mass send. It makes it easy to know who hasn’t signed yet and send automated reminders.

7. Smartphone capabilities

SignTime is for sales. That means you’ll often send contracts out for e-signature to people outside of the organization. Whether it’s a sales contract, signed quote, or work order, you want those contracts signed quickly. 

Being able to offer the ability to e-sign a contract on a smartphone improves your customer experience. It also gets contracts back faster.

8. Great UX/UI

User experience/user interface is not always top of mind when looking for a new software package. However, the single biggest predictor of whether a software adds value to your business is whether you find it easy—and enjoyable—to use.

This is another place where a free trial is essential. Not everyone likes to interact with the same style of UI. 

To test drive SignTime’s UI, sign up for a free trial today.

The benefits of a cloud contract repository

Upgrading your document storage to a cloud contract repository has many advantages over traditional filing cabinets. Here we discuss just six of them:

1. Keep all of your important documents in one place
2. Use automation to keep on top of everything
3. Faster sales and better customer experience
4. Save time, money, and space
5. Make sure everyone is keeping up with their obligations
6. Go remote, international, or anywhere

1. Keep all of your important documents in one place

Document fragmentation is a huge concern for any large business. Different departments hold their own contracts, or they get submitted for legal review and are never returned to the person who needs them. 

In either case, it’s hard to know where your documents are stored. While this is always true for paper documents, it can happen with computer files as well. If your company has a Google account, or each person uses their own laptop, then files can get lost. 

If you moved jobs today, would your company lose access to any important documents on your laptop? Have you experienced this? Having a secure, collaborative storage option on the cloud eliminates these risks to your business.

2. Use automation to keep on top of everything

Just as it becomes harder to keep track of where all your important contracts are as your company grows, it’s also hard to keep track of all your tasks. If you needed 100 people to sign a new NDA and one person forgot, would you notice? 

Sometimes people can fall through the cracks. Similarly, if you needed 100 people to sign a contract and 30 people forgot, would you have the time to send out a request for them to get it done? 

SignTime can help you get all of those contracts signed faster. It’ll also tell you who hasn’t signed and automate reminder messages. That way you can guarantee everyone signs their paperwork. 

3. Faster sales and better customer experience

Speaking of getting things signed faster, there is no place where this is more important than in sales. Every salesperson has experienced the pain of a “done deal but not yet signed” customer going cold. 

Contract management software helps make this a thing of the past. 

Now you can get your prospects to sign a quote or sales contract before they hang up the phone. You can easily send them a contract by email, go through the provisions together, and have them e-sign before you say goodbye.

It’s also a much better customer experience. Prospects don’t need to wait days or weeks to get your product or service because the deal closes quickly. It’s also easier to e-sign on a phone than print-sign-scan-send a contract back.

4. Save time, money, and space

Filing cabinets can take up a lot of space. That space costs money. They are also hard to search through for a document. That takes time. Time also costs you money. 

This whole vicious cycle can be eliminated by using a cloud contract repository. You can even digitize all of your old contracts and store them on SignTime as well. This is a huge advantage of electronic contract repositories, especially when you consider Benefit 6 below.

5. Make sure everyone is keeping up with their obligations

It can be hard to juggle a handful of clients. When the number reaches the hundreds, it becomes likely that someone will forget to do something. 

Whether you want to make sure you are keeping up with your responsibilities or other parties are meeting their obligations, an easy-to-search contract repository is there to help. 

6. Go remote, international, or anywhere

The first five benefits are all more important as companies expand internationally and/or go remote. A contract being stored in the wrong department of an office is a problem, but the wrong person’s house or wrong international branch is much worse.

If you have plans to go remote or international, then SignTime is here to help. Our features are designed to facilitate online collaboration.

SignTime is the best electronic contract repository

The contract repository is the cornerstone feature of contract management software. It helps you navigate the contract lifecycle and provides added benefits to your business.

SignTime has all the key features you need in a contract repository.