Avoid errors by implementing Contract Lifecycle Management (CLM)
Contract lifecycle management CLM, is a major contributor to digital transformation. Gartner defines CLM as:
“…a solution and process for managing the life cycle of contracts created and/or administered by or impacting the company. These include third-party contracts, such as outsourcing, procurement, sales, nondisclosure, intellectual property, leasing, facilities management and other licensing, and agreements containing contractual obligations now and in the future.”
Whether you’re operating a sales oriented business, or providing specialist services to the masses – you just can’t do it without the contracts. Putting an agreement down in black and white has been a centuries old practice that still forms the foundation of modern day businesses.
A business enters into multiple contracts on a daily basis. These contracts may arise from several different formats: utility contracts, employment letters, POS, sales invoices, etc. While some contracts are straightforward and simple, others may require diligence to handle their complexities. A lot of businesses stick to traditional methods when dealing and managing their contracts; however, the technological advancements demand more than just that. This is where Contract Lifecycle Management Clm software comes in handy.
Contract lifecycle management CLM is a software solution designed for automated management of contract administered and/or created by a business. These contracts may be any that have an impact on the company and its operations – leases, intellectual property, procurement, licensing, international contracts etc. A good CLM would be able to undertake the following tasks for the business:
- Author and create contracts
- Provide efficient collaboration tools for contract workflows and processing
- Renewal and tracking of existing contracts
- Customized reporting and analytics on contracts
It minimises the risk of human error. A contract has to pass through several stages before being processed. Throughout these stages of request, authorisation, approval, and execution, there are numerous chances of a human error– but not in case of a CLM! The CLM efficiently processes all contracts without the risk of making mistakes that may lead to unnecessary cost and time wastage.