With contract lifecycle management software (CLM), organizations can digitalize their contract management processes. The software allows the procurement and legal teams to create and manage contracts more securely and efficiently than with manual processes.
Decades ago, legal teams had to print each contract draft and review each line by hand. They spend long hours studying multiple contracts and produced reams of papers containing sensitive information. Fortunately, digital contracting has more recently come into play. Contract lifecycle management software empowers the legal team and other parties involved in contract creation and management to get more things done, from enhanced security to increased efficiency.
Lawyers and business teams can get through the contract process faster without worrying too much about setbacks such as missed deadlines and data breaches. They do not need to search for files stored randomly on hard drives or myriad desks.
With that in mind, here are several reasons why is contract lifecycle management software is critical for businesses of all shapes and sizes.
Saves Time
Your organization can use CLM software to automate workflows, saving time on contract drafting, review, and management. It also streamlines the due diligence process in anticipation of acquisitions, mergers, and other business deals.
CLM software can also help organizations save time through e-signatures. In manual processes, documents are signed by hand, and the team assigned to handle the contracts has to print all pages correctly. Then, they have to get them to a specific physical location, make sure the contracts are signed, and scanned, and then send to the other party. If you missed a page or use the wrong version of a contract, then you have to repeat the process all over again.
Integrated e-signatures can make signing a contract easier. They also come with an extra layer of security due to features like two-factor authentication. Plus, you do not need to print the document again if you need to change something on the signature page.
Improves Security
Stacks of documents sitting on shelves or desks are a security threat. Someone or a group of people who have nothing to do with a deal can see something they should not. However, if you safely store sensitive documents online, unauthorized persons cannot gain access to them easily.
Rules-based access helps to leverage security through features such as two-factor authentication. This feature makes sure that only the authorized person can see the document. All teams within an organization can use CLM software to ensure only the proper counterparts from other teams, individuals, and roles can access the documents in the system.
Simplifies Contract Storage, Access, and Organization
CLM software can quickly import existing contracts from places you presently keep them when you are getting started with contract automation. After securing all of the documents in a central location, you will not easily lose track of each file.
The software enables you to organize all the documents as easily as clicking a button. It gives you an option to link the parent and child documents together automatically. That way, you can easily find related documents without the need to run an additional search.
Conclusion
CLM software keeps all documents up-to-date and secure and all parties on the same page, regardless of how many changes a contract draft has undergone or where each party is located.