And electronic contract presents many advantages compared to a paper contract, in its individual management, but also within the framework of the overall purchasing management, procurement and supplier accounting. Decryption by the Acxias team of consultants.
1 – Improved productivity
This undoubtedly remains the greatest benefit. For a paper contract, you need 2 copies, signed internally, then references between the parties, archiving and digitization. An operation lasting between 20 and 30 minutes. It only takes a few clicks for an electronic contract, i.e. 1 to 3 minutes.
2 – Reduction of the contracting time
For a paper contract, the start date of the contract sometimes becomes earlier than the date on which the copy signed by the partner is received due to the excessively long duration of the process, i.e. between 1 to 3 weeks. This period is estimated between one hour and one day for an electronic contract.
3 – Making document exchanges more reliable
An estimated percentage of documents lost despite registered mail or delivery by courier for a paper contract versus zero losses for an electronic contract. Because in the case of an electronic contract, the traceability and security of the shipment are ensured. Additionally, read accesses are also tracked: who, what, when.
4 – Reduction of management and overhead costs
No more printing, postage and archiving costs for an electronic contract. Only software costs remain. The time spent searching for a contract or restoring it in the event of loss, or even managing a dispute, is also reduced.
5 – Optimization of contract life cycle management
With a paper contract, traceability of the life of the contract is limited. Conversely, for an electronic contract it is possible to receive alerts, for example in the event of late signature, or when certain deadlines approach: renegotiation, etc.
6 – Locking of the terms of the contract
For an electronic contract, it is possible to lock the document and thus avoid the addition of amendments from suppliers without being notified. This has the effect of reducing the risks of new clauses, modifications, etc. appearing.
7 – Secure sharing of data and documents
Setting up an electronic contract makes it possible to guarantee the confidentiality of contractual information by defining the rules and authorizations for access to documents, and above all by monitoring their compliance.
8 – Contract performance management
Measuring and evaluating the performance of contracts is much simpler when they are in electronic format. Automated analyzes can help detect poorly sized or insufficiently managed contracts, which penalize results.
9 – Simplification of the work of lawyers
An electronic contract makes the daily life of legal teams easier, firstly allowing them to save time: preparation, research, etc. It is essential for them to be able to cope with checks from authorities or requests from management, and to reduce the risk of litigation..
10 – Automation of compliance control
Compliance control, in relation to internal requirements or constantly evolving regulations, is essential to achieve objectives while respecting obligations and practices. The use ofartificial intelligence on contracts in electronic format optimizes the operation.