Optimize Your Contract Lifecycle Management (CLM) Processes with an All-in-One Solution
If contracts are the lifeblood of business, then CLM or contract lifecycle management (CLM) is the heart that keeps pumping everything properly. Without an effective CLM, a business is always at risk of leaking blood – in terms of costs, expenses, time, business value, and relationships.
A robust contract lifecycle management (CLM) solution ensures that contracts are explored, negotiated, signed, followed up, and renewed with a good grip and effortless fluidity. Right from the stage of finding the right vendors or services to set the discussions with potential partners to negotiating contract terms with them to managing compliance- CLM software dramatically changes the time and effort taken in the entire process. Not just that, with its automated capabilities, real-time data, and constant tracking, CLM also keeps the contract in the right lane. CLM software ensures the contract does not miss deadlines and does not spill over in the form of time creeps or scope creeps.
Real benefits of CLM
CLM software is a vital simplification tool. From accelerating drafting by using templates and clauses from the library to constructing the contract – CLM can wipe away a lot of bumps on the path to the success of a contract. Today, advanced CLM solutions can also create recommendations on vital clauses by leveraging AI. In addition, a good CLM helps you to ensure that key stakeholders are meeting deliverables. CLM guards against deterioration of the value of the contract through its early phases of growth.
CLM keeps the contract throbbing and kicking against all setbacks and time-guzzlers. According to a KPMG report, effective contract management can keep the contract ‘alive’ and ‘evolving.’ CLM is what businesses can tap into smartly to prevent contracts from getting dormant. CLM injects continued relevance of a contract and arrests leakage of value. CLM are excellent radars of red flags to indicate snags in contract management – when a relationship or service is on the verge of faltering.
An organization’s contract can materially impact the cost, and total time to contract, the KPMG report also underlines. This is where organizations can ensure that the burden of too-long negotiations, contracting delays, and hidden costs of contract maintenance does not outweigh a contract’s benefits.
The check-list for a good CLM
It’s essential to have an efficient contract lifecycle management (CLM) solution in place. Without this solution, it is easy for a business to have the illusion of having everything in order. The best way to see if contract lifecycle management (CLM) software is efficient enough is to check if it is capable to:
- Improve risk and compliance
- Cut-down leakages
- Maximize value from third-party relationships
- Manage risks- in a proactive way
- Enforce contractual rights
- Solidify performance with world-class CLM consulting services.
- Boost contract cycle efficiencies
- Minimize costs
- Simplify the process of personalizing contracts
- Reduce the need for manual tasks
- Simplify tracking and monitoring
- Build better relationships
Challenges of traditional CLM Vs. Benefits of a modern CLM
Like most IT solutions, the difference between legacy and new systems is simple. The reason that old systems do not work is that they are too slow, too sloppy, and too fragmented. They need people to hop from one place to another all the time-wasting crucial hours and business value in this jog. A modern CLM is, by design, compact and cohesive. It puts everything on one page. With a smart and modern one-stack CLM, you can enjoy the ease of having everything under one hood.
Here are some key features that explain the beauty of an all-in-one contract lifecycle management (CLM) solution:
- Ability to save document changes with editing party details for complete transparency
- Multi-channel mailroom process that can receive contracts from across locations and in multiple formats
- Ease to negotiate clauses or suggestions of revisions in real-time
- Electronic signature solutions enable the parties to e-sign without getting the documents physically transported
- The ability for users to also sign bulk contracts and save significantly in time and costs while reducing risk
- A centralized, secure repository for contracts and related documents, including old and new contracts
- Comprehensive flexible contract summary or abstract for quick information retrieval
- Automated contract approvals under predefined conditions like contract value and type
- A consistent legal language and process
- One-pane-of-glass dashboard for all errors, deviations, progress areas, and alarms
How to implement and optimize this CLM
Finding such comprehensive contract lifecycle management (CLM) solutions takes work. Worse, implementing them can take a different set of effort and skill sets. It is better to turn to real experts in this field, like Proen. One should always look for specialists who do this beyond the brochure. You need to work with people who actually know this space and its execution. CLM experts from Proen can help you in this direction by bringing in the following:
- Real-world expertise
- Years of on-ground CLM experience
- A vast spectrum of clients with proven results
- A deep talent pool of all capabilities needed- from technical to data to legal
- A strategic mindset and business lens for CLM
As we can see, it’s a good time for a smart business to orient towards CLM and explore an all-in-one contract lifecycle management (CLM) solution. That’s the only way to stay on top of the game- and gain actual business value from contracts, services, partners, and vendors.
KPMG had forecasted in its report that over the next five years, there will be digitization of the majority of all contracts. This shift will profoundly impact how contracts are designed, created, and managed. When obligations will no longer be static in written form, when live workflows connect the obligation with the targeted business outcome and its associated set of owners, and when AI will guide and digitize both legal and operational obligations – a business can enjoy deeper contract analytics, with precise compliance and faster contract updates. That’s when CLM will be a true game-changer for businesses.
It will not just be any heart. It will be a healthy heart- preserving and nurturing the business lifeblood—all the time.