Contracts are the lifeblood of business relationships, but managing them can be a monumental task if done traditionally. From creation to signing and follow-up, each legal document involves a process that can be time-consuming, complex and error-prone. In this article, you'll find out why Contract Lifecycle Management (CLM) and contract automation are key to optimising each stage of the contract lifecycle for leaner, cleaner processes. Let's get started!
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CLM is a technology designed to manage the entire contract lifecycle. From the contract request, it covers all tasks related to the contract. However, one of the biggest benefits of this legal tech lies in the automation of legal contract creation. This process transforms a manual, repetitive and error-prone task into a fast and accurate operation, allowing professionals to focus on higher-value tasks rather than hand-writing and proofreading hundreds and hundreds of similar contracts.
Automation in contract creation begins with the use of pre-approved templates, customised to meet the legal and regulatory needs of each organisation. These templates include standard clauses and pre-validated terms, ensuring that contracts are consistent and aligned with internal policies.
CLM allows contracts to be generated automatically from data entered into intuitive forms. For example:
Contract automation with CLM not only speeds up the workflow. It also facilitates cross-departmental collaboration. For example, a commercial team can request a contract through CLM or obtain it directly through an automated document template, so that the department can review and approve it in record time. One of the main impacts of this technology for businesses is that in addition to simplifying their processes, they ensure that each contract created is a robust, accurate document that is ready to fulfil its strategic purpose.
Practical example:
A logistics company implemented a CLM to automate the creation of contracts with its suppliers. A process that previously took days and even weeks due to manual reviews and duplicate versions is now much more streamlined and easier thanks to the CLM, which allows them to generate and approve contracts in a matter of hours, with greater accuracy and tighter closing times.
What is CLM? Discover the Power of Contract Lifecycle Management
The impact of CLM on business is wide-ranging. Let's look at some of the most immediate key benefits of implementing this type of software:
Practical example:
A multinational pharmaceutical company used a CLM to centralise its distribution contracts across multiple countries. This not only reduced compliance errors and facilitated regulatory adaptation to various jurisdictions, but also provided a bird's eye view of key terms and maturities.
While contract automation with a CLM offers numerous benefits, its implementation can present some challenges that the drivers of this technology must address strategically to ensure its successful implementation in the enterprise. Let's look at the most common obstacles and practical strategies for overcoming them.
Introducing a new technology often generates resistance, especially in teams accustomed to traditional ways of working. This challenge is most pronounced in legal departments, where reliance on manual processes was deeply ingrained until recently.
Strategy:
A CLM system is integrable with other business tools, such as databases, ERP or document management platforms. However, lack of compatibility or poorly executed integration can lead to frustration and limit its potential, so pay particular attention to the choice of suppliers.
Strategy:
The cost of acquiring and implementing a CLM may seem high at first, especially for companies with tight budgets. However, the long-term return on investment (ROI) is often significant, thanks to time savings, reduced errors and improved efficiency.
Strategy:
The best CLM system will be useless if users do not know how to get the most out of it. Lack of proper training can lead to errors and under-utilisation of the system.
Strategy:
Ebook: Learn about the key features of a CLM and how they will benefit your company.
Contract automation provided by a CLM simplifies manual and complex contract processes to transform the way professionals work with contracts on a day-to-day basis. We have seen how, with the right strategy, its implementation is a doorway to benefits of various kinds, making it a key strategic pillar for corporations.
If your company is looking to optimise its contract management and improve its overall performance, CLM is a must-have tool. Are you ready to take the step towards smarter and more efficient contract management? The future of contracts starts here!