{"id":5525,"date":"2021-11-29T09:34:40","date_gmt":"2021-11-29T09:34:40","guid":{"rendered":"https:\/\/signdesk.com\/in\/?p=5525"},"modified":"2025-09-17T07:11:06","modified_gmt":"2025-09-17T12:41:06","slug":"contract-workflow-automation-benefits-for-businesses","status":"publish","type":"post","link":"https:\/\/melento.ai\/en-in\/blog\/contract-workflow-automation-benefits-for-businesses","title":{"rendered":"How contract workflow automation can benefit businesses in this digital age?"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-5529 aligncenter\" src=\"https:\/\/melento.ai\/en-in\/blog\/wp-content\/uploads\/2021\/11\/contract-workflow-automation.jpg\" alt=\"Contract-Workflow-Automation\" width=\"8001\" height=\"3509\" \/><\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><span style=\"font-weight: 400;\">Contracts are more than just words on a page. These documents set the wheels in<\/span><\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><span style=\"font-weight: 400;\">motion and hold businesses and their clients accountable for sticking to commitments. They affect more than just the people at the negotiating table. Given the significance of contracts to businesses, the contractual process must be an efficient one.\u00a0 To improve the efficiency of contracts, it is essential to understand contract workflows and the different challenges businesses face while implementing them.<\/span><\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><span style=\"font-weight: 400;\">In simple terms, a contract workflow is an end-to-end process of getting a legal document through various stages from initiation to execution, renewal, etc.\u00a0<a href=\"https:\/\/melento.ai\/en-in\/blog\/guide-on-contract-automation-software\">Contract automation<\/a> streamlines this process.<\/span><\/p>\n<h2><span style=\"color: #008000;\"><b>Stages of a contract workflow<\/b><\/span><\/h2>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><span style=\"font-weight: 400;\">A contract workflow can be divided into seven steps:<\/span><\/p>\n<ol>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b> Initiation: <\/b><span style=\"font-weight: 400;\">This step puts the contract workflow into motion.<\/span><\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b> Drafting: <\/b><span style=\"font-weight: 400;\">After receiving the request, the contract is drafted from a precedent or standard form document.\u00a0<\/span><\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b> Negotiation: <\/b><span style=\"font-weight: 400;\">At this stage, various parties go back and forth to align themselves on a defined set of terms and conditions.<\/span><\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b> Approval: <\/b><span style=\"font-weight: 400;\">After the negotiations, all the required team members proceed with the approvals based on hierarchy.<\/span><\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b> Signing: <\/b><span style=\"font-weight: 400;\">Signing the contract is the final stage that binds the parties to the agreement.<\/span><\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b> Performance: <\/b><span style=\"font-weight: 400;\">At this stage, parties comply with all the terms and conditions of the contract and failure to do so makes them liable for penalties as per the contract.<\/span><\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Renewal: <\/b>Involved parties can revisit or renegotiate the original contract stored in the repository through <a href=\"https:\/\/melento.ai\/en-in\/blog\/how-to-review-a-contract\">contract review<\/a>. They can also renew expired contracts.<\/li>\n<\/ol>\n<h2><span style=\"color: #008000;\"><b>Challenges faced during the workflow process<\/b><\/span><\/h2>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><span style=\"font-weight: 400;\">The challenges faced by most businesses using a contract workflow are similar, if not the same. The most common challenges are outlined below:\u00a0<\/span><\/p>\n<ul>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Standardization<\/b><span style=\"font-weight: 400;\">: Lack of standardization and templatization results in duplication of work and increased man-hours in drafting the same contracts. It also leads to human errors caused while manually drafting the contract.<\/span><\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Status and Review: <\/b><span style=\"font-weight: 400;\">Due to the multiple teams and stakeholders involved in the contractual process, it becomes difficult to track the status of the contract and where it is currently stuck for review or approval.<\/span><\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Time: <\/b><span style=\"font-weight: 400;\">Sometimes, legal teams take much longer to draft contracts that pass all checks. The back and forth communication via emails for negotiations and approvals also results in a waste of time and data inconsistency. Lastly, physical signatures and stamp paperwork are tedious and time-consuming, too. The availability of authorized signatories further stretches the time taken for a contract to be approved and signed seamlessly.<\/span><\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Security: <\/b><span style=\"font-weight: 400;\">Security breaches in the contract process are high up in the list of concerns due to improper storage of documents and lack of accountability by authorized personnel in a company.\u00a0<\/span><\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Missed Renewals: <\/b><span style=\"font-weight: 400;\">As the legal team is responsible for multiple tasks, contracts that are nearing expiration are not renewed on time. It is also difficult to remember and keep track of multiple contracts and their renewal dates.<\/span><\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Improper Storage:<\/b><span style=\"font-weight: 400;\"> The absence of a unified, digital storage repository leads to misplaced contracts and related documents thereby resulting in a consequent loss of enterprise information. It also causes a loss of productivity due to the team\u2019s inability to retrieve documents at a given time.<\/span><\/li>\n<\/ul>\n<h2><span style=\"color: #008000;\"><b>Overcoming challenges and improving efficiency<\/b><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-5531 aligncenter\" src=\"https:\/\/melento.ai\/en-in\/blog\/wp-content\/uploads\/2021\/11\/contract-blog-images-02-1.jpg\" alt=\"Automate-CLM\" width=\"8001\" height=\"3509\" \/><br \/>\n<span style=\"font-weight: 400;\">Let\u2019s take a look at different business teams and the key areas to focus on to overcome contract workflow challenges:<\/span><\/p>\n<h4><b>Human Resources <\/b><\/h4>\n<ul>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><span style=\"font-weight: 400;\">HR teams work endlessly on drafting contracts and policies for new joinees, current employees, exit formalities, and other such functions.\u00a0<\/span><\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><span style=\"font-weight: 400;\">HR contracts also require the involvement of the legal teams to approve the terms, in addition to the final approval required from the respective team members.\u00a0<\/span><\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><span style=\"font-weight: 400;\">The collaborative nature of HR contracts means it is important to have a frictionless <\/span><span style=\"font-weight: 400;\">contract workflow<\/span><span style=\"font-weight: 400;\"> solution to create and manage them, to make sure that no team becomes the bottleneck for hiring new employees or drafting new policies.<\/span><\/li>\n<\/ul>\n<h4><b>Legal<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400; text-align: justify; font-size: 17px; font-family: 'open sans';\" aria-level=\"1\"><span style=\"font-weight: 400;\">The legal team needs to frequently assess risks, ensure the organization\u2019s security, which makes it difficult for them to embrace wide-scale change.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify; font-size: 17px; font-family: 'open sans';\" aria-level=\"1\"><span style=\"font-weight: 400;\">Legal contract workflow must enable members to save time on repetitive tasks and focus on value addition.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify; font-size: 17px; font-family: 'open sans';\" aria-level=\"1\"><span style=\"font-weight: 400;\">They must focus on running processes smoothly by replacing manual tasks such as drafting, negotiation, and contract renewal with automated processes.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify; font-size: 17px; font-family: 'open sans';\" aria-level=\"1\"><span style=\"font-weight: 400;\">Adopting legal contract workflow solutions broadens the reach of legal departments, allowing knowledge to be shared effectively and expertise silos to be avoided.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify; font-size: 17px; font-family: 'open sans';\" aria-level=\"1\"><span style=\"font-weight: 400;\">In addition to this, the use of standardized templates and contracts promotes risk mitigation and awareness of best practices with <a href=\"https:\/\/melento.ai\/en-in\/blog\/legal-contract-management-software-clm\">legal compliance<\/a>.<\/span><\/li>\n<\/ul>\n<h4><b>Finance<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400; text-align: justify; font-size: 17px; font-family: 'open sans';\" aria-level=\"1\"><span style=\"font-weight: 400;\">Finance teams are responsible for various important functions of a business \u2013 vendor contracts, employee salaries, audits, business contracts, etc.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify; font-size: 17px; font-family: 'open sans';\" aria-level=\"1\"><span style=\"font-weight: 400;\">They work on a collaborative level with HR, legal and other teams on these contracts. Therefore, they must work on adopting contract workflow solutions and reduce the dependency on human resources.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify; font-size: 17px; font-family: 'open sans';\" aria-level=\"1\"><span style=\"font-weight: 400;\">This also helps them to focus on minimizing discrepancies caused due to manual errors and improve efficiency.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify; font-size: 17px; font-family: 'open sans';\" aria-level=\"1\"><span style=\"font-weight: 400;\">Seamless collaboration is the key to receiving timely status updates, approvals, reviews, and signatures on contracts.<\/span><\/li>\n<\/ul>\n<h4><b>Operations<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400; text-align: justify; font-size: 17px; font-family: 'open sans';\" aria-level=\"1\"><span style=\"font-weight: 400;\">The operations team works on a collaborative level with various departments across the business.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify; font-size: 17px; font-family: 'open sans';\" aria-level=\"1\"><span style=\"font-weight: 400;\">To ensure a seamless flow of approvals and to track status reviews effortlessly, it is important to set up an approval workflow that assigns approval roles to the required team members.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify; font-size: 17px; font-family: 'open sans';\" aria-level=\"1\"><span style=\"font-weight: 400;\">Using such workflow solutions to streamline all operational processes enables the team to focus on high-value tasks and save time and effort on manual, repetitive ones.<\/span><\/li>\n<\/ul>\n<h2><span style=\"color: #008000;\"><b>Making the most efficient contract workflow<\/b><\/span><\/h2>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><span style=\"font-weight: 400;\">When it comes to making contract workflows more efficient, automation is key. Digitizing operational processes is the way forward for businesses, with a large number of organizations already taking the necessary steps towards automation and optimization. Teams can automate most of the steps in a contract with contract workflow automation, thereby enhancing the efficiency of the entire process and freeing up time for in-house legal teams and other team members.<\/span><\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><span style=\"font-weight: 400;\">Here are some key points for businesses to optimize their performance, as per :<\/span><\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b><u>1. Set up templates:<\/u> <span style=\"font-weight: 400;\">The HR, legal, and finance teams can define the terms of the master contracts from which other team members can create offer letters, vendor contracts, and so on.\u00a0<\/span><\/b><\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b><u>2. Set up automated workflows: <\/u><span style=\"font-weight: 400;\">Partner with contract workflow automation specialists like <a href=\"https:\/\/signdesk.com\/\">Melento (Formerly SignDesk)<\/a> to create automated contract workflows that track approvals, review status, and make the contract process more collaborative.\u00a0Low code automation can be used to simplify the process, making it easy to set up workflows without requiring extensive coding skills.\u00a0<\/span><\/b><\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><span style=\"font-weight: 400;\">Automation of HR contracts reduces time spent on paperwork by 75%.<b>\u00a0<\/b>By automating tasks such as sending out purchase orders and updating payment status, finance teams can spend their time optimizing operations and budgets\u00a0using low-code automation to streamline these processes efficiently.<\/span><\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b><u>3. Use API-integrated solutions:<\/u> <span style=\"font-weight: 400;\">Using API-integrated solutions such as <a style=\"color: #000000;\" href=\"https:\/\/melento.ai\/en-in\/clm\/\">CLM software<\/a>, eSign and eStamp enable businesses to electronically sign contracts and avoid the hassle of stamp paperwork. This saves time spent waiting for physical signatures and stamp paper.<\/span><\/b><\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><span style=\"font-weight: 400;\">Integrating Melento (Formerly SignDesk)\u2019s API with a business\u2019s existing tools and systems allows a seamless flow of information. It helps the team to keep track of the contract status and say goodbye to toggling back and forth between spreadsheets and email threads.<\/span><\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b><u>4. Leverage AI systems:<\/u> <span style=\"font-weight: 400;\">AI-powered contract workflow tools allow businesses to streamline their processes by monitoring workflows to identify the number of days taken by the team to complete tasks and suggest new timelines to increase productivity. AI-powered workflows also analyze risks and issues in the contracts and suggest risk mitigation methods.<\/span><\/b><\/p>\n<p><span style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b><u>5. Create a document repository: <\/u><\/b><\/span><span style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b><\/b>Using technology to automate your contract workflow helps you to store all contracts and related information in one place. This prevents loss of data, errors caused due to human intervention and alleviates security concerns.<\/span><\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b><u>6. Monitor analytics:<\/u> <\/b><span style=\"font-weight: 400;\">Regardless of how diligent a business\u2019s contract workflow is, they may still encounter bottlenecks.<\/span> <span style=\"font-weight: 400;\">Monitoring data insights of your contract workflow system helps a business to identify any challenges or risks in their current workflow and mitigate them.\u00a0<\/span><\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b><u>7. Automate renewal reminders:<\/u> <\/b><span style=\"font-weight: 400;\">Use workflow automation to set up custom renewal reminders to track key contract renewal dates. Once the reminder is set for a particular date, the relevant stakeholders will get an automated reminder email to let them know the contract is renewing soon.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-5532 aligncenter\" src=\"https:\/\/melento.ai\/en-in\/blog\/wp-content\/uploads\/2021\/11\/contract-blog-images-03-1.jpg\" alt=\"Smart-CLM\" width=\"8001\" height=\"3509\" \/><\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><span style=\"font-weight: 400;\">In conclusion, contract workflow management, including <a style=\"color: #000000;\" href=\"https:\/\/melento.ai\/en-in\/blog\/guide-on-contract-automation-software\">contract automation<\/a>, is an important part of any organization\u2019s\u00a0<\/span><span style=\"font-weight: 400;\">performance. All teams must communicate and collaborate effectively for the process to\u00a0<\/span><span style=\"font-weight: 400;\">run smoothly. In this digital era, automated workflows are important to save time,\u00a0<\/span><span style=\"font-weight: 400;\">reduce turnaround time, and improve efficiency.<\/span><\/p>\n<div align=\"center\"><a href=\"https:\/\/signdesk.com\/clm\"><button class=\"wpcf7-form-control wpcf7-submit envor-btn envor-btn-primary envor-btn-normal\" type=\"button\"><strong>Learn More<\/strong><\/button><\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Contracts are more than just words on a page. These documents set the wheels in motion and hold businesses and their clients accountable for sticking to commitments. They affect more than just the people at the negotiating table. Given the significance of contracts to businesses, the contractual process must be an efficient one.\u00a0 To improve [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":5972,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"page_templates\/blog-new-3.php","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[9],"tags":[201,202,205,323,376,424,434,454,455,456,981,1502,2097,2112],"class_list":["post-5525","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-clm","tag-automated-clm","tag-automated-contact-workflows","tag-automated-contracts","tag-clm","tag-contract-automation","tag-contract-negotiation","tag-contract-renewal","tag-contract-workflow-automation","tag-contract-workflow-management","tag-contract-workflow-stages","tag-esign","tag-legal-contracts","tag-signing-contracts","tag-smart-clm-software"],"acf":[],"yoast_head":"<!-- This site is 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