It's not strictly necessary to enter contracts in Trelica, you can simply add licenses directly. Larger businesses with more formal procurement processes will benefit more from using our contracts feature.
Contracts are a 'wrapper' for licenses and a more efficient way to group licenses together when you're purchasing multiple licenses and / or license plans from a single vendor under one contract.
Let's use an example: Atlassian is a provider of multiple applications (JIRA, Jira Service Desk, Confluence, Bitbucket etc.). Each Atlassian application is licensed with different plans e.g. Standard, Premium, Enterprise.
It's common for larger companies to purchase a mix of Atlassian products and license plans under a single contract, either directly from Atlassian or via a reseller. Rather than entering each license one by one to Trelica, repeating the start / end dates and uploading the same supporting document each time, it's easier to begin with the contract and to group together all of these licenses and license plans under a common reference document and license start / end dates.