Share this
How Procurement Teams Benefit From Contract Management Software
by Jessica Alden on August 20, 2019
Procuring items for a place of business has often been a lengthy process in the past. Finding the item that the company needs, agreeing to terms in exchange for an item. Then, finally, acquiring the goods or services needed from the external source who had that good or service. Thankfully, contract lifecycle management software makes it easier to procure goods and services.
What Is Contract Lifecycle Management?
Contract Lifecycle Management (CLM) is when the streamlining of the management of a contract, making it easier to deal with hundreds of thousands of contracts a company may have. This method reduces the risk to the company and misplacing a contract would affect a business in a negative manner.
What Are The Benefits of Contract Lifecycle Management Software?
There are always benefits when properly using the software. The software can either keep track of something, create forecasts, help manage many things. It can even create a budget for a person to follow in budgeting software. CLM software provides four main benefits. Expediting approval processes, transparency, better management of terms, and compliance.
Expediting Approval Processes
In today’s world, things happen quickly and people want things to get done as soon as possible. One of the benefits of CLM software is that it accelerates the process in which contracts are approved. Instead of weeks, or even months, of phone tag or even waiting for approval, the person in charge of approving the contracts could simply have an app for that. All they would have to do is bring up the name of the company, see if they meet the criteria for approval and then approve that company if they do meet the criteria for approval. The company would then receive the notice of approval almost instantly.
Transparency
Transparency in this instance would be that both companies are operating in a way which facilitates openness, communication, and accountability. This makes easy for others to see what actions are performed. For example, a cashier provides a receipt for the customer, which is a record of what the customer has purchased. In CLM, both sides can see which actions have yet to be taken in the process of the company acquiring the goods or services they need.
Better Management Of Terms
Contracts are put in place to define a business interaction. They are put in place to mitigate risk, establish service levels, manage the number of supplies and suppliers, as well as several other things which can be put into the contract. A contract can also be up to hundreds and hundreds of pages long and can contain countless terms, amendments, and numerous clauses both parties have to abide by. With CLM software, either party can do a quick search to see if their specific inquiry is included in the contract before deciding on a course of action.
Compliance
Acting per a procedure or rule of what both parties would have to do. There are either regulatory, operational, and even supplier compliance rules both parties must follow in order not to break those laws or operating procedures. CLM software can help both parties navigate the compliance procedures the other, as well as the compliance procedures of third parties. When compliance is not followed, there is a higher risk of data breaches and theft, there will be decreased trust from other business and the credibility of the offender will be put into doubt, and the ensuing fines can hurt the business for years to come.
What Do CLM Software Users Want?
There are a few things those in charge of procurement want and need when it comes to using a specific CLM software. They want:
- More visibility into their contractual risk and obligations.
- To know the state of the contract at any moment
- To Identify and remove inefficiencies related to the contract process.
- Greater compliance in all areas of the contract
In summary, procurement teams are relying on Contract Management Software at increasing rates. If you are a procurement professional, it may be worth investigation.
Share this
- Blog Posts (39)
- contract management software (38)
- contract management (35)
- SharePoint (9)
- contract managers (7)
- office 365 (6)
- Microsoft (5)
- contract lifecycle management (5)
- contract management needs (4)
- contract professionals (4)
- Microsoft Dynamics 365 (3)
- ROI (3)
- automation (3)
- contract economics (3)
- corridor company (3)
- efficiency (3)
- enterprise contract management (3)
- legal professionals (3)
- Change Management (2)
- IACCM (2)
- Sales Pipeline (2)
- SharePoint 2013 (2)
- Tim Cummins (2)
- bottlenecks (2)
- effectiveness (2)
- process improvement (2)
- procurement (2)
- return on investment (2)
- Arizona (1)
- Blockchain (1)
- Blue Cross of Idaho (1)
- Buy Side VS Sell Side (1)
- CRM (1)
- CSS (1)
- Central Administration Service (1)
- Contract Clause (1)
- Contract Creation Module (1)
- Contribute Permission (1)
- Digital Signature (1)
- DocuSign (1)
- Efficient (1)
- Essential SharePoint 2013 (1)
- GDPR (1)
- IACCM America (1)
- IT (1)
- Javascript (1)
- Jquery (1)
- Las Vegas (1)
- Merger And Acquisition process (1)
- Microsoft SharePoint Conference (1)
- NDA (1)
- Negotiation Strategies (1)
- Nevada (1)
- Phoenix (1)
- Power Shell (1)
- RFP (1)
- Richard Susskind (1)
- SharePoint 2010 (1)
- SharePoint Conference (1)
- Tomorrow's Lawyer (1)
- Web Designers (1)
- West Australian Health Department (1)
- Windows Azure (1)
- Workflow Automation (1)
- Yammer (1)
- breach of contract (1)
- business case (1)
- clm software (1)
- clm system (1)
- compliance (1)
- contract administrator (1)
- contract audit (1)
- contract cycle times (1)
- contract management for healthcare (1)
- contract management tools (1)
- contract manager (1)
- contract risk (1)
- contracting errors (1)
- eContracts (1)
- elements of a contract (1)
- equal (1)
- implementation (1)
- innovation (1)
- legally binding (1)
- love (1)
- migration (1)
- playbook (1)
- real estate (1)
- request for proposal (1)
- revenue leakage (1)
- sales (1)
- self-service contracts (1)
- sell side (1)
- sharepoint on-premises (1)
- subcontractors (1)
- supply chain management (1)
- valentines (1)
- May 2022 (2)
- April 2022 (1)
- March 2022 (1)
- April 2021 (2)
- March 2021 (2)
- February 2021 (2)
- December 2020 (1)
- November 2020 (2)
- October 2020 (4)
- November 2019 (1)
- October 2019 (1)
- September 2019 (3)
- August 2019 (5)
- July 2019 (1)
- June 2019 (2)
- May 2019 (4)
- March 2019 (3)
- February 2019 (5)
- January 2019 (5)
- December 2018 (7)
- November 2018 (6)
- October 2018 (4)
- September 2018 (1)
- August 2017 (1)
- July 2017 (1)
- April 2017 (1)
- February 2017 (1)
- January 2017 (1)
- September 2016 (1)
- June 2016 (3)
- May 2016 (1)
- April 2016 (4)
- December 2015 (1)
- October 2015 (1)
- September 2015 (2)
- May 2015 (1)
- February 2015 (2)
- November 2014 (1)
- October 2014 (2)
- September 2014 (3)
- July 2014 (1)
- June 2014 (1)
- April 2014 (3)
- March 2014 (2)
- February 2014 (2)
- January 2014 (1)
- October 2013 (1)
- September 2013 (2)