Contract Lifecycle Management (CLM) refers to the process of managing agreements (contracts) online or digitally from start to finish. By adopting Contract Lifecycle Management, businesses can both digitise and automate the process in each stage for better and efficient collaboration.
In this article, we will discuss why Contract Management is important and more. Read on.
What is CLM software?
CLM softwares are digital platforms which are built for managing contracts of different enterprises, businesses and companies. It automates the processing for all stages of its lifecycle.
Stages of a Contract
Here is a brief overview of the different contract stages:
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Creation of Contract
When the need for a new product, partner or services arises, it becomes important to charter a clear process for everyone to follow. This is when the initiation or inception of a contract gets done – legally binding two parties to be policy compliant.
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Contract Negotiation
Post-creation of contracts, they are negotiated at this stage by the parties. During negotiation of contracts, the legal teams of both parties need to be able to track changes, versions and comments of documents.
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Approval of Contract
If both the parties are happy with the outcome of a contract then it gets sent for approval. The contract then gets sent for review and their approval.
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Execution
If all of the earlier steps have been overcome, then e-signage takes place. This puts the contract in motion and with the agreed changes, it gets shared with the key stakeholders.
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Contract Monitoring
This is a continuous process till closure of the agreement. The contract gets reviewed, modified and changed till the expiration/closure of it according to required changes.
Benefits of Contract Lifecycle Management (CLM) Softwares
There are a lot of benefits to adopting contract management software for enterprises. Here are a few of the notable benefits which you need to know of:
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Saves Time
Manual managing of contracts is a very time-consuming process. It involves a lot of mailing back-and-forth, signing papers, and then scanning/uploading them for sharing.
On top of that there’s also the fact that contracts expire and the entire process needs to get repeated again with modifications.
With the aid of CLM software this task becomes easy! It stores all versions in a single place and easy-to-find format. Hence, users are able to retrieve the updated contract quickly.
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Fosters Collaboration
Utilising contract management software enables users to collaborate on the same contract in a simultaneous manner. This enables them to streamline the process.
Moreover, the authorised users in an organisation are also able to be aware of the state of each individual contract. This creates less space for misunderstandings regarding agreed terms and conditions.
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Increases Visibility of Contract
Storing all files in a virtual and central repository enhances the visibility of the contracts. A CLM system lets users track the different aspects of the lifecycle of a contract so that there are no chances of anything getting overlooked.
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Increases Productivity
Managing contracts is just like managing any other business process. It works the best when handled right. Usage of the right contract management software tools gives a greater insight into the process. Hence, the employees are able to work faster and consistently improve their productivity.
Should You Invest in CLMs?
In order to get a more guided approach before investing in any CLM software you can try out Contract Management Software Demo. It will help you understand the features of such platforms and how exactly they can help automate your business’s contract management tasks.
Conclusion
Contract Lifecycle Management proves as an end-to-end agreement management software solution. If your business happens to be still using traditional and manual methods of recording/managing contracts, then you miss out on the more critical areas of business like control, compliance and visibility.
This is where CLM software comes to help. With their help, you will be able to automate workflow and contract management – ultimately which will help your business in the long run.
