Contracts are an essential part of any organization’s success. From employment agreements to supplier contracts, businesses of all sizes must manage multiple contracts simultaneously. With so many contracts to manage, it’s easy for important details to slip through the cracks, leading to costly errors and legal disputes. That’s why many organizations turn to contract management software to streamline their contract management processes. However, not all contract management software is created equal. To help you make an informed decision, this article explores the four essential contract lifecycle management software features every CLM system should have.
Customizable Templates
One of the most important features of a CLM system is the ability to create customizable contract templates. Templates can save time and reduce errors by providing a standard format for frequently used contract types. A good CLM system should allow you to customize templates based on your business needs, including language, terms, and conditions. This ensures consistency across all contracts, reducing the risk of errors and misunderstandings.
Moreover, the CLM system should allow for the easy creation of new templates when new contracts need to be created. Through it, you can stay up-to-date with the latest legal and regulatory requirements and ensure that your contracts reflect the most recent changes in the industry.
Automated Workflows
Automated workflows can help streamline the contract process, reducing the time it takes to create, review, approve, and sign contracts. They can also assign tasks to specific individuals and set deadlines to ensure that contracts are completed on time. This eliminates delays and reduces errors, ensuring that contracts are executed correctly and efficiently.
Additionally, automated workflows can improve communication between teams and external parties, reducing the need for back-and-forth emails and phone calls. By providing a centralized platform for all contract-related activities, teams can collaborate more effectively and stay up-to-date with the latest changes and updates.
Electronic Signatures
Electronic signatures are becoming increasingly popular in today’s digital world, and a CLM system should provide this functionality. Electronic signatures can save time and money by eliminating the need for physical signatures, reducing the time it takes to execute contracts. They can also improve security by providing a secure, tamper-proof method of signing contracts.
Your company’s CLM system should provide an easy-to-use electronic signature functionality that complies with all applicable regulations and policies. This way, your contracts can be legally binding and enforceable, reducing the risk of disputes and legal action.
Reporting and Analytics
Finally, a CLM system should provide robust reporting and analytics capabilities. Reporting and analytics can help you gain insights into your contract management process, including how long it takes to create and execute contracts, which contract types are most frequently used, and which teams and individuals are involved in the contract process.
With reporting and analytics, you can identify areas for improvement and make data-driven decisions to optimize your contract management process. This can help you improve efficiency, reduce costs, and increase productivity, ultimately leading to more successful contract outcomes.
Summing Up
Managing contracts is often tedious, but it doesn’t have to be overwhelming. Adopting a modern and user-friendly contract management system that aligns with your requirements is a practical way to streamline the process. If you consider the key features mentioned earlier, you can effectively narrow your search and find a system that suits your business needs. This will enable you to efficiently manage contracts, increase productivity and ultimately take your business to new heights.