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Let's spotlight DocJuris, an AI-powered contract review platform that can significantly enhance your contract lifecycle management process in the crucial review and negotiation stages.
Additionally, we leverage Microsoft 365 to create a full CLM solution, should you wish to utilize the full range of our tools.
Main takeaways from this article:
- Contract lifecycle management (CLM) software is essential for organizations to streamline and manage contracts effectively.
- Key benefits of using CLM include improved efficiency, enhanced visibility, better compliance, increased security, and cost savings.
- Implementing CLM solutions can significantly benefit various departments, such as procurement, sales, finance, and HR, as well as legal and business teams.
- The best CLM tools offer features like electronic signatures, templates, collaboration tools, version control, workflow management, and more.
- DocJuris, while not a full CLM solution, is an AI-powered contract review platform that can greatly enhance the review and negotiation stages of your contract lifecycle, complementing your CLM processes.
What is the contract lifecycle?
The contract lifecycle is the journey a contract takes from its initial request to its final expiration (and sometimes renewal!). It involves several steps, including drafting, negotiation, approval, signing, and ongoing management.
What is contract lifecycle management (CLM) software?
CLM software is designed to streamline and automate the various stages of a contract's lifecycle, from initial request to creation through negotiation, approval, and even contract execution, renewal, and termination. It offers a centralized platform to manage contracts efficiently, ensuring that critical details are tracked and key workflows are followed without manual intervention.
Advantages of contract lifecycle management software
Here are just a few of the many benefits you can reap from using CLM software:
Improved efficiency and speed
With CLM software, you can streamline approval workflows and automate manual tasks, which significantly improves operational efficiency. By removing bottlenecks and enhancing collaboration, CLM tools ensure that contracts are completed faster, saving you time and reducing delays across your organization.
Enhanced contract visibility
With greater contract visibility, you can make sure that you never miss critical terms, dates, or obligations. With a comprehensive CLM tool, you gain a single source of truth for all your contracts, making it easy to track progress and share updates with your team.
Better compliance and risk management
With integrated compliance tracking in CLM, you can rest assured that all contracts align with regulatory requirements, minimizing legal risks. This added layer of oversight assists in maintaining up-to-date, compliant documents, protecting your organization from potential violations and costly fines.
Enhanced security
A standout feature of contract management software is enhanced security. By incorporating end-to-end encryption, user permissions, and secure storage, a robust CLM platform safeguards sensitive information. As a result, your data is protected from unauthorized access, ensuring peace of mind.
Cost savings
Implementing CLM software significantly reduces costs associated with manual contract management. By automating routine tasks, minimizing human errors, and speeding up contract review processes, businesses can save on labor expenses and mitigate financial risks.
Learn more about how contract management software can increase revenue recognition and eliminate unknown costs.
Improved collaboration
CLM tools enhance collaboration among stakeholders by creating open communication channels and a shared environment for negotiations. This streamlines contract creation and approval processes, saving valuable time and reducing potential miscommunications.
Discover the top five features of contract collaboration software.
Enhanced review and negotiation
While not a feature of all CLM software, integrating AI-powered contract review platforms like DocJuris can significantly speed up the review and negotiation phases, reducing bottlenecks and improving accuracy.
Who needs contract lifecycle management tools?
CLM software isn't just for legal teams! While legal departments definitely benefit from streamlined workflows, the truth is that anyone who deals with contracts can boost their efficiency and security with a CLM tool.
Here's a look at teams/departments that can leverage CLM for a smoother workday:
Legal departments
Legal departments benefit immensely from using a CLM software solution. They can streamline contract creation and approvals, ensure compliance with regulatory standards, and maintain secure, organized contract repositories.
Additionally, automated workflows and version control reduce errors and improve efficiency. As a result, legal teams can focus more on strategic tasks rather than administrative ones.
Procurement teams
Procurement teams benefit from CLM software by streamlining contract creation and negotiation. The software offers automated workflows and real-time collaboration, enhancing efficiency and reducing cycle times. With advanced tracking and compliance features, procurement can ensure adherence to agreements and regulatory standards.
Moreover, centralized document storage and search functionalities simplify access and management, ultimately improving procurement operations and fostering better vendor relationships.
Sales teams
CLM software streamlines the contract approval process, reduces delays, and enhances customer satisfaction. With real-time tracking and automated workflows, sales representatives can focus on closing deals rather than administrative tasks.
Quote management and integration with CRM systems ensure that all contract-related activities are seamless, fostering improved collaboration and faster deal closures.
Finance departments
For finance departments, using CLM software means renewing and issuing contracts in a timely manner and managing payment terms efficiently. This leads to better cash flow management and cost savings.
Additionally, the software's robust reporting capabilities help in financial forecasting and compliance tracking, reducing the risk of financial penalties. Enhanced visibility into contract obligations enables more strategic decision-making and fosters improved vendor relationships.
Human resources
Human Resources departments benefit from using CLM software in numerous ways. It streamlines contract creation and approval processes, enhances compliance with labor laws, and improves contract accessibility. By providing templates and automated reminders, CLM software reduces administrative workload.
The software's auditing and tracking capabilities also help maintain transparency and accountability.
Top 20 features of contract lifecycle management software
CLM software is packed with features designed to simplify every stage of the contract lifecycle. Let's explore the key functionalities that make CLM a game-changer:
1. Electronic signature
Make things official anywhere and at any time with electronic signature capabilities. Contract management software allows you to quickly and easily sign contracts electronically without needing wet signatures or printing and scanning.
2. Templates
Many contract management software solutions come with a library of pre-built contract templates that you can use as a starting point for your contracts. This can save you time and ensure that your contracts are legally compliant.
Learn how to design effective contract playbooks and standards.
3. Collaboration tools
With collaboration tools, contract management software makes it easy for multiple parties to work on a contract simultaneously. People can leave comments and make edits, which speeds up the negotiation process and ensures that everyone is on the same page.
4. Version control
Contract management software includes version control tools that allow you to track changes to a contract over time. This lets you view any additions and edits made to the document and by whom. It’s an excellent way to stay on top of your contracts and avoid markups from sneaking in without you knowing, which can happen easily when you redline in Word.
5. Workflow management
Workflow management tools in contract management software allow you to automate and streamline the entire contract process. You can set up rules and conditions that determine how contracts move through the approval process, and you can monitor the progress of each contract in real-time.
6. Compliance tracking
Stay compliant with various legal and regulatory requirements by tracking key contract dates and milestones. You can set up alerts to remind you of upcoming deadlines and run reports to see how well you meet your compliance obligations.
7. Document storage
Contract management software provides secure, centralized storage for all of your contracts and related documents. It keeps your contracts organized and in one place, making it easier for all stakeholders to find and access relevant documents when needed. No more hunting down the legal team or searching through a long email chain when an urgent deadline needs to be hit.
8. Search and filtering
With search and filtering tools, contract management software makes it easy to find the contracts you need quickly and easily. You can search for contracts using keywords, dates, or other criteria. Plus, you can filter your results to narrow them down quickly.
9. Integration with other systems
Many contract management software solutions are designed to integrate with other business systems, such as customer relationship management (CRM) software or enterprise resource planning (ERP) systems. This can help your entire team work more efficiently and avoid manually re-entering data.
10. Customization
Contract management software should be highly customizable, allowing you to tailor the system to your specific needs and processes. Having customization options helps you make the most of the software and ensure that it fits seamlessly into your existing workflow.
11. Reporting and analytics
Gain data insights with reporting and analytics. CLM software allows you to track key performance indicators (KPIs) and receive details about your contract process. You can use this information to identify areas for improvement and make data-driven decisions.
12. Security
Security is a crucial concern for any business, and contract management software includes robust security measures to protect your contracts and related data. This can consist of encryption, secure login, and access controls to prevent unauthorized access.
13. Mobile access
Manage your contracts on your phone. Contract lifecycle management software is available on mobile devices, allowing you to access your contracts and related information on your phone or tablet. This can be especially useful for businesses with remote workers or teams that are constantly on the go.
14. User permissions
Maintain control over your contracts with user permissions. Contract management software often includes user permission controls that allow you to customize who can access different contracts and what they can do with them. It’s an efficient way of regulating access and protecting sensitive information.
15. Auditing and tracking
With auditing and tracking tools, contract management software allows you to see who has accessed a contract and when. This can be useful for ensuring that contracts are being reviewed and signed by the appropriate parties and identifying potential issues or breaches.
16. Electronic filing
A good CLM solution will include electronic filing capabilities, allowing you to store and organize your contracts in a virtual filing cabinet. This can help you save space and reduce clutter. Plus, the advanced search and filter feature makes it easier to search for any contracts you need.
17. Automatic reminders
Stay on top of important dates with automatic reminders. Contract management software often includes auto reminder features so that you don’t miss out on any deadlines and milestones. You can set up reminders to notify you of upcoming contract expiration dates, renewal deadlines, and other important events.
18. Integration with e-signature solutions
Do you have a preferred digital signature tool? Some contract management software solutions make it easy to integrate with e-signature solutions, such as DocuSign or Adobe Sign. That way, you’re not limited to which software you can use when it comes down to getting that John Hancock.
19. Integration with document management systems
Many contract management software solutions can be integrated with document management systems, such as SharePoint or Box. This gives you multiple options to store your documents to make it easier for all parties to access and update contracts as needed. Everyone who has access will be able to see the most up-to-date version, minimizing confusion.
20. Support and training
Lastly, support and training services help you get the most out of their software. This can include online tutorials and user guides that walk you through the entire program so that you know where every feature is and how it works. Plus, customer support teams are available to answer any questions you may have.
Pro tip: Consider AI-powered review capabilities
AI-powered contract review: While not a standard feature of all CLM software, integration with AI-powered contract review platforms like DocJuris can significantly enhance the review and negotiation stages of your contract lifecycle. These tools can quickly analyze contracts, flag potential issues, and suggest edits based on predefined criteria.
Learn more about the limitations of fully automated redlining and why assisted review is often more effective.
Deciding on the right CLM software
Understanding your business goals is key to a successful CLM implementation. What are you hoping to achieve with contract lifecycle management?
- Reduce contract turnaround time?
If so, look for features like electronic signatures, workflow automation, and pre-built templates to expedite the approval process. - Enhance compliance and risk management?
If so, features like automatic reminders, compliance tracking, and robust security are essential for meeting deadlines and mitigating risk. - Improve collaboration across departments?
If so, collaboration tools, user permissions, and real-time document sharing are key features to streamline communication and ensure everyone is on the same page.
Once you know your goals, it's time to assess your current contract management landscape. Here are the top three effective methods to do so:
- Conduct stakeholder interviews: Talk to key players across departments (legal, sales, procurement, etc.) to understand their pain points and current contract workflows.
- Map out existing workflows: Visualize your current contract lifecycle. This will help identify bottlenecks and areas ripe for improvement.
- Identify gaps: Compare your current workflows to your desired state and identify the functionalities a CLM solution should provide to bridge those gaps.
By following these steps, you'll gain a clear understanding of your needs and be able to select a CLM software solution that offers features that directly address your business objectives.
Enhance your CLM process with DocJuris
DocJuris is an AI-powered contract review platform that can significantly enhance your contract lifecycle management process, particularly in the crucial review and negotiation stages.
With DocJuris, you get powerful AI-driven features to help accelerate the contract review and negotiation process. It can integrate with your existing CLM software or document storage solutions, providing an extra layer of efficiency and accuracy to your contract management workflow.
Key features of DocJuris include:
- AI-powered contract analysis
- Instant markup capabilities
- Negotiation heatmaps to visualize areas of contention
- Customizable playbooks for consistent review
- Integration with popular e-signature and document storage solutions
Additionally, DocJuris can leverage Microsoft 365 to create a comprehensive CLM solution, should you wish to utilize the full range of our tools.
Stop wasting time manually reviewing contracts or trying to track down the latest version of an essential agreement. Book a demo today to see how DocJuris can enhance your contract lifecycle management process workflows!
FAQs
Why implement a CLM tool?
Implementing a CLM tool streamlines your contract processes, enhances compliance, and reduces risks. It offers improved visibility and efficiency, ensuring contracts are managed systematically, which ultimately leads to cost savings and better collaboration across teams. Leveraging AI features further optimizes accuracy and decision-making.
How much does CLM software cost?
The cost of CLM software varies widely depending on the features and scale you need. While some vendors offer basic packages starting at a few hundred dollars per month, more advanced solutions with AI-driven analytics, integration capabilities, and extensive customization options can range into the thousands.
How do you implement CLM software?
Successful CLM software implementation involves planning, data migration, user training, and ongoing support. Many vendors also offer free demos and trials so that users can experience the software before they decide to invest in it.
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