Contract lifecycle management software is a powerful tool to help you manage the creation and review of contracts across your organization. It allows users to efficiently create, store and manage agreements in one platform. This can lead to several benefits for organizations, including the following five.
It helps you avoid non-compliance
A non-compliant contract is a costly mistake. It can lead to fines and penalties, cost overruns, and negative publicity. There are many ways for a contract to become non-compliant: you might fail to deliver on a promise made in it, you might not have provided the other party with all the information they require, or something could have changed since the date of signing that makes your terms no longer legally binding. Contract lifecycle management software helps you avoid these mistakes by ensuring that each stage of the process is completed fully and accurately. This way, there’s less chance of being out of compliance later on down the line.
It saves you time on contract creation and review
Contract lifecycle management software can save you time on contract creation and review. You can create, review and track contracts in one place – no more going between different applications for different types of contracts like RFPs, purchase orders, and invoices. This makes it easier for your teams to collaborate and share information about the projects they’re working on and helps avoid having to create multiple versions of the same contract.
It increases productivity
Contract lifecycle management software helps to reduce the time spent on contract creation and review. The software enables you to create contracts in a matter of minutes without spending too much time on it. You can also use templates for creating new contracts, which saves you even more time. As a result, you will be able to save up to 50% of your costs related to contract management and administration by using CLM software.
CLM increases the productivity of attorneys, HR, and IT staff by automating repetitive tasks such as scanning documents or attaching them to emails (which are otherwise done manually). These tasks may seem trivial but they require a lot of human resources that could be otherwise utilized in other ways like coming up with creative ideas for developing new products or services for customers or improving existing ones based on their feedback.
It helps you avoid overpaying
One of the biggest reasons why businesses fail to deliver on time and within budget is that they underestimate their costs. By using a contract lifecycle management system, you can avoid this problem by keeping track of all costs throughout the project.
For example, let’s say you’re hiring a contractor to build your new website. You ask him how much he wants for his services and he tells you $100 per hour plus expenses. You agree because it seems reasonable at first glance—but then imagine things going wrong: maybe his work isn’t up to par or maybe there are some unexpected delays with other projects that cause him to spend more time than expected working on yours. And then there are those unforeseen complexities in every construction job. Soon enough, your bill is way over $100/hour—and even though it was partially your fault for not having an accurate estimate from the get-go, it was also partly his fault for not being able to give one.
Contract lifecycle management software helps prevent this kind of situation by letting everyone involved in defining what “complete” means before work begins so everyone knows exactly how much scope needs to be included in each task description so there aren’t any surprises later down the line.
It reduces your paper consumption
You’re probably already aware of the exorbitant cost of printing and storing paper documents. But there are other reasons to be concerned about how much paper is used in your organization.
For one, paper is difficult to search through, so you waste time trying to find information that’s buried in stacks on shelves or in boxes in the basement. Paper can also get lost or damaged when it’s stored away from its original location—and then you’ll have to spend more time tracking down that missing document because it isn’t easy to find what you need at a moment’s notice when files are scattered all over the office.
It also takes longer for employees who aren’t located near each other (or who don’t work on projects together) to collaborate because they have no way of easily accessing information from one another without going through an intermediary such as email or Dropbox, Google Drive etc., which adds even more steps between them and their shared resources.
Conclusion
In conclusion, contract lifecycle management software is a great tool for any company that wants to save money, time, and paper. It can be used by both large corporations and small businesses alike. However, it’s important to make sure that the software you choose has features that will work best for your needs before purchasing it.
