It’s no secret that contracts are a vital part of any business. From vendor agreements to supply chain and procurement contracts, the right contract choice can mean the difference between success and failure. However, managing all those contracts can be a daunting task, especially if your company is proliferating. You need a reliable solution like contract lifecycle management (CLM) to make executing and managing contracts easier. Below, we’ll discuss six advantages of using CLM to manage your crucial business contracts and why you should start using it soonest.
Unparalleled Levels of Transparency
One of the best answers you’ll get when seeking an explanation of contract lifecycle management is that it provides unparalleled transparency levels during contract management. With CLM, you can track every contract from its inception to execution. This means that you’ll always know who signed which contracts when they were signed and the current status of each contract.
In addition, CLM gives you the ability to set permissions so that only certain people can access specific contracts. This is perfect for sensitive information that only a few people should see.
Faster Execution of Contracts
Another advantage of using CLM is that it speeds up the contract execution process. All the relevant parties have easy and quick access to the contract documents. There’s no need to send physical copies of the contract or hunt down the right person to sign it. Everything can be done electronically, which saves a lot of time.
Increased Contractual Compliance
Using CLM can also help increase compliance with your contracts. All the relevant contact information is stored in one place and is easily accessible. This makes it easy to track compliance issues and make sure that they are addressed promptly. Higher rates of contractual compliance will give your company an upper hand in winning new contracts or having old ones extended upon expiry.
Better Visibility Into Contract Performance
With CLM, you have complete visibility into how each contract is performing. This includes seeing which contracts are close to expiring and which ones have been renewed. You can also see how much revenue each contract generates and spot any issues that need to be addressed. This information is vital for making sure that your business is running smoothly and that all your contracts are performing up to par.
Improved Negotiation Power
Since you have complete visibility into how each contract is performing, you can use this information during negotiations. You can use it to show the other party how well the contract is performing and why it should be renewed. You can also use it to negotiate better terms for new contracts. This improved negotiation power can save your business a lot of money in the long run.
Improved Supplier and Customer Relationship
CLM is a great way to improve your relationships with suppliers and customers. When you have a clear picture of how each contract is performing, you can proactively address any arising issues. This proactive approach will prevent minor problems from becoming big ones. It will also show your suppliers and customers that you are committed to providing them with the best possible service.
Since CLM offers a single contact platform for stakeholders and decision-makers, it also becomes easier for your team to manage and improve supplier and customer relationships.
These and many others are the advantages of using contract lifecycle management in your business. From improving relationships with suppliers and customers to reducing costs and increasing efficiency, CLM can help your business in several ways. If you’re not already using CLM, now is the time to consider implementing the solution and watch your business grow.