CLM might not be the most fun part of sales, but it is necessary for the company’s overall development. Contracts renewed on time and with accuracy are a boon for the company and client. contract lifecycle management solutions simplify the process, serve customers and help in the growth of the company.

What is CLM

Contract lifestyle management is a complicated process and involves various tasks. Even drafting a single-page contract could include a massive list of specifications and amendments. Contract management solutions help businesses create and manage contracts without any hassle.

Stages in contract management

Creation

A contract is usually based on a request of a company to engage in business with another organization supplying some products or services. This stage can either be a new contract, a renewal, an amendment or a cancellation. The paperwork should include all internal mutually agreed clauses and standard terminologies. One way to speed up the contract creation is by using a pre-made template, although both parties should agree.

Negotiation

This involves many people on both sides of the team and covers legal and commercial terms. A superb way to simplify the negotiations is by agreeing on a strategy, like choosing team members and knowing what adjustments are allowed. Complex negotiations require effort and time, and it doesn’t take time for situations to change. So, records of all agreements and discussions should be maintained.

Award

Both parties should sign the agreement either digitally or on paper. Most organizations have rules regarding contract approval based on risk, value and other elements.

Administration

Each party must adhere to its compliance and obligations during the contract period. It involves tracking performance and handling problems and disputes. Poorly handled contracts translate to missed expiry dates, renewals, and lost amendments which can cause supply failure, customer claims or reputational damage.

Renewal

When a contract is near its expiry date, it has to be extended. You can renew the contract with the same conditions, re-negotiate or terminate.

Why businesses require contract lifecycle management programs

Establishes a smoot-running environment

As we know, contract management involves six stages. Mishandling the contract at any step can create a dent in the company’s reputation. Contract lifecycle management solutions make contract creating and handling seamless.

Simplifies monitoring and tracking

Tracking milestones, timelines and other parameters are critical in contract management. A good CLM solution company monitors contracts for risks and issues and updates the team.

Eliminates manual labour

Manually handling and arranging contracts can be a tedious process. As humans, we can’t avoid errors, but purchasing reputable CLM software eliminates the chances of these human-bound mistakes.

Ensures adherence

Any alteration from company obligations or compliance can be unfavourable for companies. Hence to avoid any lawsuit, it is necessary to maintain compliance with CLM.

Provides security

CLM tools stock all contracts in clouds that assure security and privacy.

Save money and time

A good CLM program cuts the additional cost of payment errors, compliance penalties and other potential client losses due to manual errors. Additionally, this software help saves time by fetching contracts quickly and putting an end to redos.