Contract Lifecycle Management is a complex process that requires collaboration between internal and external parties. A CLM solution supports all aspects of agreement management with digital workflows and a central repository.

Businesses drafting high volumes of routine contracts can shorten turnaround times by automating processes and outsourcing legal work. They can also reduce costs by implementing CLM software with eSignature integrations.

Streamlined workflows

Streamlining processes is an effective way to reduce costs, minimize errors and increase productivity. It is also a great way to free up capacity that can be used for highpriority goals and initiatives. However, it’s important to remember that streamlined workflows may require some time to become fully implemented.

Using a CLM with workflow automation software provides many benefits, including improved document storage and organization, version control, and real-time collaboration between teams. It also eliminates silos, improves visibility, reduces cycle times and improves negotiations. It also helps automate contracting workflows and reduces compliance risk by connecting with regulatory databases and monitoring tools.

Streamlining work processes allows organizations to better understand how their business operates. They can identify redundancies dated practices and inefficient steps and then use that information to streamline the process. Additionally, they can measure the impact of their efforts by using a centralized process dashboard that includes KPIs and other critical data points. This is especially helpful for businesses that operate on a tight budget or have limited resources. This will help them save money and stay competitive in the market.

Automated approvals

The automated contract approvals feature of CLM is useful throughout the contracting process. It ensures that legal and other departments don’t get bogged down in redundant, time-consuming tasks by documenting everything that needs to be done. It also helps in meeting contract approval turnaround times and enhancing cost optimization.

A good CLM solution should offer advanced and customizable workflow automation. This will enable users to customize and set up the platform to fit their specific processes. This will save them a lot of time and effort as well as prevent errors. In addition, the software should provide clear user training and ongoing support for new users.

Another important feature of CLM is its ability to provide insights based on contracts and their performance. This information can help companies reduce bottlenecks and continuously optimize their processes. This is achieved through the use of dashboards and reports, which provide easy-to-read data to identify problem areas. For example, Ironclad’s CLM software allows admins to track key metrics such as eSignature completions, process completion speeds, and the overall contract status.

Automated renewals

Contract renewals are a critical component of Contract Lifecycle Management. They help companies stay on top of their obligations and provide the opportunity to reevaluate relationships and negotiate terms that align with new business goals. But if automated renewal clauses aren’t managed effectively, companies may miss out on the opportunity to renegotiate or terminate agreements that don’t meet their needs.

Contract Lifecycle Management software helps businesses stay on top of upcoming renewals by automating workflows and providing regular reminders. This can reduce the amount of manual work required for teams and improve productivity. In addition, the ability to easily access contract documents from a single source is important for teams.

Many contracts include automatic renewal clauses, also known as evergreen clauses. These clauses automatically renew a contract without amendment year after year unless a party provides notice that they do not wish to renew. This practice is common in a variety of industries, including software as a service (SaaS), insurance policies, and telecommunications services. However, it is important to note that these clauses must be clearly and conspicuously disclosed.

Tracking of obligations

Contract obligation management is the process of boiling down the terms of a contract to legally enforceable commitments. When done well, it reduces legal risk and makes it easier for companies to comply with regulatory and contractual obligations. Typically, this involves reporting, alerting and escalations that notify obligation owners when their contract obligations are approaching due dates.

Sophisticated CLM systems enable users to track contract drafting and execution statuses from anywhere on a mobile device. They also allow you to request bulk eSignatures from a multitude of stakeholders with the click of a button. The system even retains signatory records in a centralized location, which saves time and resources.

Another benefit of CLM is that it can streamline contract creation and signing processes by ensuring that contracts are written using the same language, with the same clauses and sections. It can also provide a clear view of all contractual obligations. This helps you eliminate redundancies and ensures that all your teams are working on the same page. It also reduces costs by eliminating the need for costly overnight shipping to send physical contracts.

Enhanced visibility

Using contract management software to standardize and streamline the contracting process eliminates manual steps, reduces the potential for errors, and improves visibility into contractual terms. Moreover, it helps companies mitigate risk and manage compliance with laws and regulations.

In addition to a centralized contract repository, leading CLM solutions offer anywhere-anytime access and intelligent extraction of important data like clauses, obligations, service levels, and more. They also offer full audit trails and support document versioning, ensuring that contracts comply with an approved contracting process. This reduces maverick contracting and its associated risks.

Purchasing/vendor management teams benefit from increased transparency into the contract negotiation workflow by having full access to contracts that require review and signature or are nearing expiration. This accelerates turnaround times and minimizes any roadblocks that may derail the contracting process. Sophisticated CLM solutions also deliver reports that transform contract data into business insights. This gives admins the ability to make informed decisions and refine their processes. This, in turn, lowers third-party risk by enabling a continuous process of vendor evaluation and strategic sourcing.