Electronic contract companies are using the latest increases from UPS and FedEx to wean more businesses away from paper-based processes.

The big selling point: Cutting out postage and the mailroom in favor of transmitting documents electronically is a time-saver and a cost-saver.

Some companies are boasting that switching over provides immediate cost savings for overnight and express shipments — up to 80% in many cases.

Timing is particularly critical right now because new shipping rates from UPS and FedEx are slated to take a leap Jan. 5.

It’s a little more difficult to bargain shop now, too. Once-competitor DHL has dropped out of the business, leaving these two titans. It doesn’t look like they’re going to get in to a price war any time soon.

Electronic contract providers promise they’ll deliver signed agreements, purchase orders, invoices and associated paperwork:

• faster
• more conveniently, and
• at greatly reduced costs.

Important Procurement and Purchasing documents travel from one business to another at the touch of a button. Transactions that once took days or even weeks can now be handled in only minutes.

Another plus: Sending signatures and other critical info through Internet connections has come of age.

Even the most cautious Procurement pros will now admit the concept has merit, and e-signature and e-document practices have earned legal standing and protection.