We often hear contract lifecycle management technology lauded for various reasons, whether it’s bringing efficiency and productivity to a department, or enabling attorneys to make data-based decisions about risk. Below, we’ll go over a few top benefits of having a CLM tool.
1. Improve Visibility
Contract lifecycle management technology increases legal team visibility through improved reporting on new contracts. Request forms or integrations allow other department’s needs to be input directly into the system so you can see what needs to be done in real time.
You can also see what stage a contract is in, who it is assigned to, and if there are any problems or delays at-a-glance. Prioritize based on due date, effective date, or contract type as needed – you can see everything you need to make those decisions.
2. Time and Cost Savings
Save time and money by reducing administrative work. Automated workflows can generate templates with other party/deal information in seconds, send emails for you, auto-fill fields to reduce entry time, and more.
Outside of workflow automations, simple recall of information through your system can save up to 20% of employee time looking for internal information, and being able to recall your documents can save $120 per misfiled document.
3. Reduce Errors
Using your workflow automations, not only are you saving time, but you are reducing errors. Contract lifecycle management technology automates approvals based on triggers you set in your system, reduces template and clause errors, keeps contract negotiations on schedule, and more.
4. Automatic Executed Contract Storage
Great CLM tools will automatically store your executed contracts in a central location. This way, you can recall your contracts easily and reduce administrative burden and errors in filing.
5. Avoid Non-Compliance
With date tracking, reports, and the ability to highlight contracts with special terms, you can stay on top of contract compliance easily.
6. Clear Renewals and Expirations
Know which contracts are renewing and when, and even automate parts of the process with automated workflows. Receive alerts in advance of a non-renewal date, or send a custom email to the other party with options for renewal or termination. Contract lifecycle technology can use their response to determine the next actions and even send an already generated amendment to you for your review.
Outside of workflows, you can track upcoming renewal dates and non-renewal notice periods with email reports or dashboard reports so you don’t miss a beat.
7. Accessible Negotiation History
See your entire negotiation history with a client – even if you’ve had employee turnover. Important negotiation details are no longer lost in the abyss of a former contact’s email, but is automatically logged in your system so you can negotiate from a place of power.
8. Robust Tracking / Reporting
We’ve touched on it in several other parts of this post, but contract lifecycle management technology really does improve your possibilities when it comes to reporting – in every part of the contract lifecycle.
See the stages of your contracts, know what’s due to help you prioritize, uncover bottlenecks, track expirations, and more. The data you track in your CLM tool will help you prove your department value to your various stakeholders.