Organizations, be small or large, manufacturing or technology, product based or service based when doing business with their suppliers or customers need to put their commitments in writing to avoid any confusion or overlooks. Here comes the need for a contract, a written document which comes with a legal binding to render services promised to the client against a price, making these most crucial documents to manage within an organization. Organizations with the mentality of forgetting about their executed contracts after shelving them lose the track of what is in their contracts i.e. their commitments and obligations.
For a small organization with a quantum of 10-50 contracts, it is quite feasible to go back to their contracts and review them time and now, but as the quantum and complexity increase, it becomes difficult managing these contracts without the assistance of some kind of contract management tool. It can be a simple excel tracker to an introductory level desktop or online based software to a complex enterprise level contract management software, but you definitely need one to manage your obligations more effectively and efficiently.