Centralizing contract storage, strengthening compliance, and automating the creation, execution, and management of any type of contractual agreement are essential parts of the legal department.
Contract lifecycle management Defined
Contract lifecycle management (CLM) is a term that describes how organizations manage contracts and agreements in order to ensure they’re compliant with regulations, legal requirements, and internal policies. The concept has been around for several years, but it’s only recently that it’s become a mainstream solution. Procurement contract lifecycle management is really hot in 2022.
Contract management software bridges every contract phase
Naturally, this makes it easy to keep track of all the documents and activities related to a contract. The software also offers tools to help you automate contract-related processes. For example, if you need to create a new contract, you can generate the necessary documents automatically. In addition, you can store and search for existing contracts. You can even use the software to update or amend contracts. The main benefits of CLM include: Improved contract management When contracts are stored in one central location, it’s easier to track and manage them. This means you’ll have a single source of truth, and you’ll be able to easily access the documents that you need. The software also makes it easy to comply with regulations and internal policies.
Quicker, more accurate contracts
A well-managed contract lifecycle is also likely to result in faster and more accurate contracts. You’ll know exactly when you need to send a new contract to your customer or when you need to renew an old one.
Improved compliance: Since all the information about a contract is in one place, you can quickly and easily spot any issues related to legal requirements or internal policies. Automated contract renewal Contracts can be automatically renewed at certain dates, based on the terms of the agreement. This reduces the chance of human error. If you’re looking for a simple solution for managing contracts, then CLM is worth considering.
Why CLM is important; Contracts are essential to every business. They represent a relationship between two parties – for example, a supplier and a buyer. In many cases, they’re also a legally binding document. However, it’s easy to overlook the importance of contracts and agreements. In fact, many companies don’t even bother to track their contracts. This is a mistake.
Eliminate paper and ink from contracting
The process of creating contracts and managing them can be time-consuming. It’s not unusual for some companies to have hundreds of contracts and agreements that need to be updated, amended, or renewed on a regular basis. This can result in huge amounts of paper that must be stored and kept safe. A CLM solution can help eliminate this paper. Instead of printing out copies of contracts and sending them to your customers and vendors, you can create an online contract repository where you store and manage them. This makes it easier to find the documents you need when you need them.
For example, if you’re looking for a supplier agreement, you can access it in seconds instead of having to search through files on your hard drive.
If you want to add a new clause to a contract, you can do it online. You’ll also be able to keep track of who’s approved the changes and when they were made. This means you’ll never lose track of any important information about a contract.
CLM software also helps you automate many of the contract-related processes that you currently have to perform manually. For example, you can automatically send contracts to your customers and vendors at specific dates. You can also automatically renew contracts when their terms end.
Integrate contract processes with third-party systems
Many businesses use different software packages to track contracts. This is problematic because it can be difficult to manage all the data that’s stored in these systems. However, CLM solutions are designed to integrate with other software. This means you can easily integrate your contract management system with other systems that you already use. This means that you can keep your existing contracts and agreements in one place.
This is also useful for creating new contracts or updating existing ones. For example, if you’re looking for a supplier agreement, you can access it in seconds instead of having to search through files on your hard drive. If you want to add a new clause to a contract, you can do it online. You’ll also be able to keep track of who’s approved the changes and when they were made.
This means you’ll never lose track of any important information about a contract. Integration with third-party systems is also useful because you can create automated processes based on the data stored in those systems. For example, you can automatically send contracts to your customers and vendors at specific dates. Automate processes Many companies are reluctant to automate contract processes. However, this can be a mistake. Automation can help you save time and money.