Contract Management Software – An Essential Business Tool
In an era where every business process is driven by technology, contract management software is fundamental for growth. It is designed to enable businesses to implement all their documents effectively, right from their creation, up to execution & renewals. The software helps govern the various stages of business documents seamlessly.
What Is CLM Software?
Contract Lifecycle Management software is designed to offer a variety of features & functionalities that can help businesses manage large volumes of contracts in a more efficient manner. It attempts to add value to every stage of contract management & streamlines the entire process flow.
The technology introduces automation through the different phases of managing business documents.CLMis an essential resource for new-age businesses to streamline their contract management system & overcome the challenges that accompany it.
Businesses can adopt the contract management software to automate the management of contracts in each of their stages. Legal departments, especially, find thatcontract management offers huge opportunities for automation.
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Contract Management Challenges: Statistics and Insights
Even though there are advanced technologies to streamline contract management processes digitally, many organizations still struggle with manual and inadequate contract management processes, leading to significant challenges and consequences, such as:
- The High Cost of Poor Contract Management
According toWorld Commerce & Contracting research, companies that fail to implement robust contract management processes are losing considerable revenue. The study reveals that well-optimized contract management strategies can yield an average annual savings of 9% of a company's revenue.
- The Alarming Reality of Lost Contracts
According to a report byThe Journal of Contract Management, 71% of companies cannot locate 10% or more of their contracts. This statistic highlights the prevalence of contract mismanagement, which can lead to severe financial consequences, such as revenue loss, missed renewal opportunities, penalties, and fines.
- In-House Counsel Seek Better Contract Workflow Solutions
A recent survey byALM and Bloomberg Lawreveals a striking gap in contract management technology. A staggering 75% of in-house counsel express dissatisfaction with their current contract workflow tools. This widespread discontent underscores the urgent need for more sophisticated, tailored contract management solutions that cater to the unique needs of in-house counsel.
These statistics highlight the ongoing challenges in contract management, emphasizing the need for streamlined processes, centralized repositories, and automated workflows.
From Contract Creation to Execution: How CLM Can Help Your Business
A robust contract management solution, such as SignDesk CLM, automates contract workflows and offers optimized solutions at every step of contract creation.
- Automated Contract Creation & Faster Approvals
Drafting a contract is the first step of contract management. SignDesk's AI-driven contract automation enables businesses to generate compliant contracts in minutes using pre-approved templates and a clause library, reducing manual effort.
- Easy Accessibility & Higher Security
Contract management software enables authorized personnel to access contracts anytime, anywhere, improving operational flexibility. With features like audit trails, version tracking, and access logs, businesses gain complete visibility into contract modifications and activities, enhancing security and accountability.
- Automated Contract Tracking & Transparency
SignDesk CLM tool provides an analytical dashboard with real-time insights into contract status, upcoming renewals, and key obligations. Businesses can track contract performance and optimize processes, leading to cost savings and enhanced productivity. Organizations can negotiate better terms and reduce financial risks by analyzing contract metrics.
- Safeguarding Contracts from Breaches
Contract breaches can result in financial and reputational damage. SignDesk's contract lifecycle management tool automates compliance tracking and sends timely alerts for renewal deadlines, obligations, and milestones. This ensures that businesses adhere to legal and contractual requirements, reducing the chances of accidental breaches and penalties.
Modern Contract Management Software vs. Traditional Approaches
Traditional contract management methods, often reliant on manual processes and physical storage, are being replaced by modern, technology-driven solutions. But what sets these modern contract management software apart, and how can they benefit your organization?
|
Feature |
Traditional Contract Management |
How SignDesk CLM Differs |
|
Contract Creation |
Manual contract drafting is prone to language inconsistencies, errors, and time-consuming revisions as it contains many pages with essential information. |
SignDesk automates contract drafting using pre-approved templates or upload options, reducing errors and ensuring consistency & compliance. |
|
Negotiation& Approval |
Negotiation and collaboration in traditional contract processes include multiple physical meetings, lengthy email chains, and manual follow-ups. It can stretch the contract approval timeline to 30-40 days or more, causing frustration and less productivity. |
Contract Management Software accelerates the negotiation and approval process with online collaboration and multi-level approval workflows. They expedite contract execution, reducing approval cycle time. |
|
Storage & Accessibility |
Physical or local storage for contracts is prone to risks such as breaches and fabrications. This method often results in scattered and disorganized files, making retrieval challenging, time-consuming, and frustrating. |
SignDesk CLM offers a cloud-based centralized repository for the contracts with easy access from anywhere. With search and filter options, contracts are easy to locate and access on our CLM platform. |
|
Version Control |
The traditional contract preparation process is often cumbersome, involving multiple iterations and manual efforts to finalize a signable agreement. This can result in a proliferation of different contract versions, leading to confusion, errors, and potential disputes. |
Clients can seamlessly access and review all contract versions on the CLM platform using the MS Word interface. Automated version tracking and a transparent audit history provide a clear record of modifications made by all stakeholders, finalizing the contract draft for signature. |
|
Scalability |
Paper-based contract processes have limited scalability due to manual dependencies and rigid workflows. |
Contract management tools can handle large-scale contract volumes, managing multiple contract workflows across various locations. |
Modern contract management software significantly enhances efficiency, security, and compliance while reducing costs and manual workload. Unlike traditional methods, which are time-consuming and prone to errors, automated contract management ensures seamless end-to-end contract lifecycle management.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
