Contract lifecycle management software is an application that assists business owners with the efficient creation and management of contracts through all stages. Businesses can rely on such software to make, execute, and manage contracts while also providing negotiation, approval, and renewal options.
When you’ve been utilizing traditional contract management methods, it’s easy to spot the inefficiencies, but it can take some convincing to make the leap and let technological advancements assist. If you’re not yet convinced that CLM solutions are worth your while, take note of the following information.
Contract Creation Takes Too Much Time
After explaining contract lifecycle management, it may immediately become apparent that traditional CLM practices are inefficient compared to those involving the use of software. They’re manual, labor-intensive, and may even have a high margin of error, unlike processes involving
automation.
When you rely on CLM platforms, you’re able to draft new contracts quickly, get negotiations underway without delay, and promptly begin the approval process. You can even be kept updated about the contract as it progresses.
Contracts Are Difficult to Find
When a core part of your business involves drafting and enforcing contracts, you likely spend a lot of time referring back to past agreements. Through traditional CLM means, this is not always an efficient process.
However, many CLM platforms allow you to search for contracts and particular information within them using
AI. Rather than spend hours browsing through each contract one by one, you can input search phrases and find what you’re looking for with ease.
You May Not Meet Your Contractual Obligations
When you work with several different businesses, you likely have contracts in place to strengthen those business relationships. These outline the expectations other companies have of you, and vice versa.
However, it’s easy for important clauses and contractual obligations to fall through the gaps with largely manual contract processes. When you use
CLM software, you can stay on top of what’s expected of you to keep your commercial relationships sweet.
Revisions Take Time
The first draft of a new contract is not always the last one. Parties may need to make revisions, negotiate, and add comments for clarification and correction. This can be a slow and problem-riddled process with offline systems, especially as changes may be missed and several contract versions end up in production.
The automated and streamlined process experienced with software may make this a problem of the past. You can save time and possibly even reduce the risk of costly mistakes.
Traditional Contract Methods May Not Be Secure
If you rely on cloud-based document editors, traditional document processors, and emails, you may be at risk of your contracts falling into the wrong hands. Many of the best CLM platforms provide encrypted and secure access to ensure only those who need to see the contract will have access. This can give you and your counterparties peace of mind that private information isn’t going to fall into the wrong hands.
Wrapping it Up:
You may not be sure about adding new technology to your place of business, but companies handling numerous contracts can undoubtedly see the value in CLM software. If you’re experiencing these problems above, now might be the right time to review your options.
