In the ever-changing business world, it’s becoming more and more important for companies to find efficient ways of managing their contracts. Contract lifecycle management (CLM) software helps businesses deal with everything from initial contract negotiations to managing ongoing relationships. This article will explore what CLM is and why it can be beneficial for your business.
What is contract lifecycle management software?
Contract lifecycle management software is a powerful tool that can help companies improve their profits and efficiency by managing the entire contract lifecycle. CLM is a suite of tools that includes contract management, contract review and approval, contract execution, contract management, contract renewals, and contract closure. When you consider how much money companies save by using CLM tools it’s easy to see how they can make a big difference in your bottom line.
Key features of contract lifecycle management software
Contract lifecycle management software can help your company manage contract lifecycles in a more systematic, efficient, and productive way. The best CLM applications will provide features that ensure:
Automated contract management: This feature allows you to create, store and manage all contracts in a single platform. You can also automate the process of managing contracts by using AI technology.
Tracking of contract status: The software should be able to track important contract milestones throughout its lifecycle such as creation, approval, signing, and renewal. Some solutions even offer an automated workflow engine that notifies all necessary stakeholders at each stage of the process so that there are no delays or mistakes along the way.
Contract templates: If you often sign similar types of agreements with clients or vendors then having pre-existing templates for those types of agreements is very helpful because it saves time when creating new ones. This means you don’t have to type out everything from scratch every time you create a new contract.
Reporting & analytics: For companies to maximize profits from their contracts they need accurate information on how profitable each deal has been historically. This way they know which deals are worth pursuing again in future years—and which ones should be avoided at all costs.
Benefits of contract lifecycle management software
The benefits of contract lifecycle management software are numerous. Firstly, it reduces costs by automating the process of creating and managing contracts. This can be done through a variety of features, including:
- Templates for common contract types
- A library of sample contracts from which to base your agreements
- Automated workflow tools that allow you to create customized workflows for each stage in the contracting process
The benefits of contract lifecycle management software are seemingly endless. It can help you improve your business processes, streamline workflows and save time and money. Additionally, this type of software offers a secure, centralized place for all your contracts in one place so that you always have them on hand when needed for legal purposes or other reasons related to business operations.
Conclusion
Adding an automated contract lifecycle management solution to your company’s business processes has been proven to reduce the risk of document errors, improve the speed with which contracts are signed and delivered, and increase your company’s profit margins. For all these reasons and more, consider using a CLM today.