Contract lifecycle management is known to be the management of vendor, customers and employee contracts. The contract management consists of a process involving a lot of steps which is important to understand and utilize. It is a new process that has entered into the business world, so it requires proper handling of the already included templates, playbooks, e-signature and legal portals that are already there is the contract lifecycle management.
CLM, as it is better known in the business world, is important for all the organizations and agencies that work with contracts on a day to day basis. It is basically used to keep a track of every stage of the contract or agreement as soon as it is proposed.
If the CLM is not done properly then the company can incur a heavy loss of revenue; as the number of contracts one has is directly proportionate to the revenue that is generated. If there is a loss of contract then there is also a loss of revenue, so the contracts need to be managed well with the Contract lifecycle management.
Those who work in sales or in the legal team in a company have to digitally or manually manage the contract, which is better known as contract lifecycle management. But, with the change in technology and the world becoming more tech-savvy, digital management has increased in the past few years.
Benefits of using the CLM (contract lifecycle management)
These are the benefits that a large organization gets by using the contract management platform:
- It makes storing of contracts easy, one doesn’t need to fill a cabinet with contracts as all these contracts can be easily stored in the cloud which is an accessible location the CLM software. By doing this contract can be easily accessed from anywhere and at any time, it makes locating of contacts very easy.
- By manually storing the contracts, one can lose some of the contracts in the long run but with the use of the contract lifecycle management a person can keep the track of all the contracts that a business house deals with. Digital storage and digital searching are easier than the manual storing of contracts.
- It also has the feature of e-signature, so a company can easily sign contracts with clients whenever and wherever they want in a matter of a few seconds.
- It keeps the track of all the changes in the contracts made, so if there is some doubt among the two parties then they can easily view the history of transactions.
- The CLM software has the option of advanced analytics that helps in monitoring the length, the e-signature, the documentation and the status of the contracts easily.
- There is also the option of setting alarm for the contract deadline, the terms of conditions of every contract can be quickly searched for.
So, the CLM is a great invention and introduction in the business market today which directly helps in the generation of higher revenues.