Benefits of Contract Lifecycle Management (CLM)

Contract Lifecycle Management, or CLM as it is commonly known, is the process of managing and tracking all stages of a contract from its initial inception to its completion. It also involves the creation, maintenance, and archiving of contracts in order to ensure compliance with applicable laws and regulations. This type of management has numerous benefits for organisations large and small — from improved efficiency to better collaboration between legal teams, departments, partners, vendors, and customers.

Benefits of Contract Lifecycle Management:

1. Increased Efficiency

By leveraging technology such as automated contract authoring tools, companies can reduce time spent on manual tasks like data entry and contract searches. CLM helps streamline processes by providing a single platform for storing contracts securely and making them easily accessible for review.

2. Improved Collaboration

CLM encourages collaboration between legal teams, departments, partners, vendors and customers by providing a single platform to track progress on contracts and pinpoint areas of risk or change. It eliminates the need for multiple versions of a contract being circulated between parties, reducing confusion and streamlining workflow.

3. Improved Compliance

With CLM in place, organizations can keep better track of their contractual obligations, such as payments and deadlines. Having an automated system in place allows companies to quickly identify any potential risks or changes to contracts before they become an issue — ensuring compliance with applicable laws at all times.

4. Increased Visibility

By automating processes associated with contracts, CLM provides improved visibility into the entire lifecycle of a contract. This allows teams to quickly identify any potential issues or bottlenecks in the process and take appropriate action.

5. Reduced Costs

By streamlining processes associated with contracts, companies can reduce costs associated with manual tasks like data entry and document searches. Additionally, contracting teams can stay on top of changes to industry regulations and compliance requirements more easily, reducing unnecessary expenditures related to violations.

6. Enhanced Negotiations

With visibility into the entire lifecycle of a contract, companies can better position themselves in negotiations. This includes having a complete understanding of what their contractual obligations are and negotiating terms that are favorable to their business objectives.

7. Improved Risk Management

CLM’s automated processes and improved visibility into contracts help companies identify issues before they become a risk. By tracking changes to contractual obligations, organizations can quickly resolve any potential problems and mitigate risk efficiently.

8. Improved Transparency

By providing a single platform for storing and tracking contracts, CLM improves transparency across the entire organization. This allows teams to more quickly identify any potential problems or changes to contracts and ensure compliance with applicable laws and regulations.

9. Improved Governance

With CLM in place, organizations can easily track and manage their contracts to ensure that all parties involved are aware of changes or obligations. This helps improve governance and reduce the risk of contractual disputes.

Conclusion

Contract Lifecycle Management is an invaluable tool for organisations large and small — providing increased efficiency, collaboration, compliance and visibility while saving time and money. With CLM in place, companies have an automated system that allows them to quickly address any issues before they become a risk. Additionally, CLM improves transparency across the organization and enhances the ability to negotiate more favourable terms with partners, vendors, and customers. By taking advantage of CLM technology, organisations can ensure their contracts are managed efficiently and in accordance with applicable laws and regulations. SirionLabs provides comprehensive CLM solutions that allow businesses to maximise their contracts and optimise their operations. Our intuitive platform enables organisations to streamline their processes, increase efficiency, and reduce costs associated with managing contracts. Contact us today to learn more about how our CLM solutions can help your business.