The strategic shift from manual to automated contract lifecycle management
A manual approach to contract lifecycle management (CLM) means that your team spends most of its time doing routine tasks rather than strategic work that adds real value. It brings the risk of missed deadlines, non-compliance with contract terms, and failure to maximise contract value.
By contrast, automating CLM with a modern software solution opens massive opportunities and significant benefits for your business. Here some ways that a comprehensive CLM solution can help your business to get better outcomes from contract management:
Know and understand which contracts are in place: A CLM system creates a secure, centralised repository of contracts that gives you complete visibility of the legal agreements you have signed, what the clauses say, and who the counterparties are. You’ll be able to easily search for and retrieve any contract and the related documents.
Save time and money; use human resources more efficiently: Legal teams spend a lot of their time reinventing the wheel. Automating processes from initiating contracts, negotiating terms and drafting standard terms to monitoring risk and tracking performance will enable them to put their hours to more productive and strategic use.
Never miss a deadline, obligation or benefit: Today’s sophisticated CLM software leverages artificial intelligence to extract key information from each contract. It can use its understanding of the contract to alert you to deadlines for renewal, renegotiation or termination. The system can help you track whether you’re complying with the contract terms and if the counterparty is doing the same. It can give you insight into benefits, such as discounts for early payments.
Better decision making: Your CLM system should include reporting and advanced analytics tools that provide insight into key performance indicators (KPIs) and other metrics across your contract portfolio. This can help you make better strategic decisions to maximise contract benefits and mitigate risks.
Enhanced collaboration: CLM solutions allow teams to review and negotiate contracts in a unified workspace. This makes it easier to work together with internal and external stakeholders to negotiate terms and ensure the contracts align with your goals.
Reduced data integrity, security and privacy risks: A secure CLM system will eliminate the need to store contracts in multiple spreadsheets, email inboxes and SharePoint directories. As a secure, central repository, a CLM system will eliminate many of the points where data inconsistencies, breaches and leaks may occur.
Manual processes can’t keep pace any more
A manual approach to CLM is no longer good enough in a world where regulatory pressure is increasing and where businesses need to get more done with less resources. Automation will empower your business to fully realise the value of every contract, mitigate risks, and drive sustained growth.
