What is Contract Lifecycle Management Software?

Introduction

All contracts have a lifecycle, from the initial drafting to the final expiration. You may ask, “What is contract lifecycle management (CLM) software and how can it assist my business?” CLM simplifies the management of every contract and makes it easier for enterprises to deal with numerous important contracts that can prove risky if not handled properly. It can be difficult to manage all stages of every contract and that’s where CLM software helps.

CLM software slashes expenses and enhances revenue by offering the following advantages:

• It eliminates repetitive tasks, uses intuitive artificial intelligence, and automatically generates contracts to reduce errors and improve accuracy.
• You don’t have to worry about destruction or loss of physical assets such as paper and ink and hard drives. Thus, the platform eliminates the chances of lost contracts by protecting them with software storage.
• It employs centralized organization which makes it easier to track contracts. You can eliminate complicated and error-prone email chains, and get approvals from concerned parties more quickly.
• CLM software improves predictability and visibility into roadblocks and issues.
• You get increased reliability which makes it easier to renew contracts on time.

Features of Contract Lifecycle Management Software

Personalized Dashboard

You can personalize the software’s dashboard to fit changing needs and goals. For instance, you might wish to expedite renewals or enforce certain contract terms. Select a CLM platform that offers a personalized dashboard to suit your unique requirements. You should be able to easily configure it without IT help.

Global Searches

Your business could face risks if the software doesn’t enable you to spot potential liabilities, or conduct global searches for history, notes, comments, associated documents, and related agreements. Effective CLM solutions present versatile search functionalities that collect the full text of metadata, documents, and related info so that you don’t miss anything important.

Native Mobile App

Mobile devices have become preferred devices for conducting business because of their portability and convenience. The vendor should therefore offer apps that empower you to create, approve, edit, and reject contracts using mobile apps. You should be able to note updates, search and approve contracts, and get dashboard views and push notifications on tasks using the mobile app for efficient contract management on the go.

User Permissions

The CLM software should offer a robust Role Based Access Control (RBAC) feature that helps you manage access to contract info based on user roles, access permissions, departments, and geographies to help you protect confidential data.

Effortless Configuration

Your contract management solution should not need custom code building each time you wish to create new fields, rules, and workflows. Leading CLM software products allow you to easily configure and change the platform for new business processes, avoiding the requirement for code alterations.

Benefits of Contract Lifecycle Management Software

Standardize Contract Processes

In large companies, offices in different places may have separate procedures and contracts for different clients. Many contract teams do not have clear goals and scope across contracts. According to a study, lack of proper contract management impacts about 40% of projects.

CLM software allows an enterprise to regulate contract processes, including scope definition, across big teams in diverse locations. It typically offers a central library of contract clauses and templates that minimizes examples of provided contracts that include language falling outside agreed ranges.

Clear Visibility

CLM tools allow you to customize workflows, including notifications, actions items, and business rules. Your contract team members should be able to easily follow review requests, approval of newest version, performance of post-execution condition, and other workflows. 

The software should deliver past performance metrics that inform you about the length of a particular contract process and past challenges faced by other team mates. In addition, time stamps reveal the who, when, and what for every contract process. This enhanced activity visibility improves accountability in teams.

Better Communication

An IACCM study shows that organizations that have the effective contract management practices utilize efficient communication methods in their contract teams. They use a rigorous structure, simple language, graphics, and quality CLM software to enhance collaboration and communication among their employees.

Faster Error Detection

Large enterprises face the challenge of detecting errors quickly as delay in identification of mistakes can prove expensive. In addition, significant errors that have an impact on business contraction can have legal consequences. Companies can customize the contract lifecycle to facilitate early detection and take steps to correct and remove the mistakes. These proactive methods help to identify errors more quickly and rectify them promptly.

Finally, CLM software can generate automated alerts when contract terminology falls beyond pre-approved ranges. An authorized administrator can determine and modify these ranges, which creates proper documentation for audit purposes.