These days, it is a common business practice for organizations to regularly rely on legal agreements to get important business tasks done. From vendor-related processes to supply chain and procurement, from staff recruitment and employment to facility management and real estate matters, etc., contracts play a pivotal role in how we get work done.
However, successful contracts don’t happen based on set-and-forget principles. Rather, it is necessary to manage and track every stage of a contract’s lifecycle to achieve the best performance and compliance. Traditionally, this process was managed through manual paper systems that left too much room for errors. Fortunately, contract management has evolved to become a more technology-backed resource. Modern contract lifecycle management systems (CLM) have evolved into a formidable source of added business value for any organization.
4 Main Contract Lifecycle Management Benefits
That said, let’s look at some of the key benefits that you can expect upon implementing contract lifecycle management:
1. Centralized Storage
Have you ever wasted hours during your workday because you were searching for an important document before making a major work decision? Or, have you had to go all the way to the office on the weekend or public holiday to find some contract information from 5 years back that was hidden in paper files in some old and abandoned filing cabinet?
These are typical situations where a CLM could have spared you a lot of inconveniences.
CLM solutions allow you to access contract information anytime you need it and even when you are on the move through cloud-based storage platforms. The ability to access contract information this way in a matter of seconds makes contract management and decision-making more dynamic and responsive.
2. Avoid Common Contract Pitfalls
Although your contracting process may start on a good note, if it’s not monitored thereafter, several things can go wrong during the contracting process and permanently ruin business relationships such as:
- Non-compliance litigation: compliance remains a major concern in contracts, especially in very large contacts with different tasks being executed by several parties. A CLM helps to ensure that there are no incomplete or misunderstood contractual obligations at every stage.
- Missed deadlines: many contacts come with monetary penalties for missed deadlines or milestones. Although they are meant to act as an incentive for contractors, they can quickly add up and frustrate smaller businesses with limited working capital. A CLM can save contract stakeholders a lot of money and time by helping to establish and monitor timelines during the contract lifecycle since users will receive alerts and notifications for critical dates.
3. Real-time Collaboration
With multiple decision-makers and stakeholders often involved in one contact, CLM is a valuable asset for facilitating collaboration. Digitized CLM, in particular, provides a robust platform for real-time collaboration. The best CLM solutions on the market allow you to incorporate inputs from all stakeholders. Users can comment, ask for clarifications, make changes (if authorized to do so), etc. This beats traditional email-based or paper-based collaboration in terms of offering better communication and efficiency.
4. Streamline Contract Workflow
Streamline contract processing and make it easier to manage every stage of the entire contract lifecycle. Easily oversee approval chain, reviews, and notifications. Use the built-in configurable workflow system to route the contracts and related requests to the appropriate people.
Due to these benefits, and more, Axxerion’s CLM software has earned the confidence of the world’s largest companies as a valuable partner for mitigating contract-related risks.
Even then, mid-size companies are not left out as they can also leverage the benefits of the best contract lifecycle management solution available.
Our easy-to-use CLM solution also helps you with reports & dashboards, role-based security and access, contract financials, confidentiality, sales contracts, procurement contracts, service agreements, etc.Free DemoFree Demo