If you are in business, then you know that managing contracts is a vital part of keeping everything running smoothly.
After all, contracts are the agreements that you have with other businesses and individuals that allow you to do what you do. If you don’t have a contract, then you can’t really do anything.
That’s why having a good contract management system in place is so important. One of the best ways to manage contracts is with contract lifecycle management (CLM) software.
This type of software is designed to help you manage all aspects of your contracts, from creation to renewal.
It can also help you keep track of important dates and deadlines, and ensure that you are always in compliance with the terms of your contracts.
There are many benefits to using CLM software, but here are just a few of the most important ones:
1. Save time and money: CLM software can help you save time and money by automating many of the tasks associated with contract management.
For example, if you need to send out reminders to renew a contract, the software can handle that for you.
2. Reduce risk: CLM software can also help you reduce the risk of non-compliance and contract breaches.
Contract Lifecycle Management (CLM) Software
CLM software is a tool that helps businesses manage the lifecycle of their contracts.
It can be used to create, store, and track contracts, as well as manage contract renewals and amendments.
CLM software can also be used to negotiate contract terms and track contract performance.
There are a number of different types of CLM software, each with its own set of features and benefits. The type of CLM software that is right for your business will depend on your specific needs and contract management processes.
Types of Contract Lifecycle Management (CLM) Software
There are a number of different types of CLM software, each with its own set of features and benefits.
The type of CLM software that is right for your business will depend on your specific needs and contract management processes.
1. Contract Creation Software Contract creation software helps businesses create contracts from templates. This type of software is often used by businesses that have a standard contract template that they use for all of their contracts.
2. Contract Storage Software Contract storage software helps businesses store and manage their contracts. This type of software can be used to store both digital and paper contracts. Contract storage software often includes features such as version control, contract expiration reminders, and contract renewals.
3. Contract Tracking Software Contract tracking software helps businesses track the performance of their contracts. This type of software can be used to track contract milestones, payments, and other key contract performance indicators. Contract tracking software often includes features such as contract performance reports and contract renewals.
4. Contract Negotiation Software Contract negotiation software helps businesses negotiate contract terms. This type of software can be used to create and manage contract proposals, as well as track and compare contract terms. Contract negotiation software often includes features such as contract term databases and contract term comparisons.
5. Contract Amendment Software Contract amendment software helps businesses manage contract amendments. This type of software can be used to create, track, and manage contract amendments. Contract amendment software often includes features such as amendment tracking and amendment management.
Key Features of Contract Lifecycle Management (CLM) Software
The key features of CLM software vary depending on the type of software. However, there are a few key features that are common to all types of CLM software.
1. Contract Templates Contract templates are pre-written contract documents that can be used to create new contracts. Contract templates can be used to create both digital and paper contracts.
2. Contract Storage Contract storage is the ability to store contracts electronically. This can be done either on the software provider’s servers or on the user’s own servers. Contract storage often includes features such as version control, contract expiration reminders, and contract renewals.
3. Contract Tracking Contract tracking is the ability to track the performance of contracts. This can be done by tracking contract milestones, payments, and other key contract performance indicators. Contract tracking often includes features such as contract performance reports and contract renewals.
4. Contract Negotiation Contract negotiation is the ability to negotiate contract terms. This can be done by creating and managing contract proposals, as well as tracking and comparing contract terms. Contract negotiation often includes features such as contract term databases and contract term comparisons.
5. Contract Amendment Contract amendment is the ability to manage contract amendments. This can be done by creating, tracking, and managing contract amendments. Contract amendment often includes features such as amendment tracking and amendment management.
Pros and Cons of Using Contract Lifecycle Management (CLM) Software
There are a number of pros and cons to using CLM software. The type of software that is right for your business will depend on your specific needs and contract management processes.
Pros:
1. CLM software can help businesses save time by automating contract management processes.
2. CLM software can help businesses improve contract visibility and control.
3. CLM software can help businesses reduce contract risks.
4. CLM software can help businesses improve contract compliance.
5. CLM software can help businesses save money by reducing contract administration costs.
Cons:
1. CLM software can be expensive to purchase and implement.
2. CLM software can be complex to use and require training to use effectively.
3. CLM software can require a significant amount of data to be entered into the system.
4. CLM software can be difficult to customize to meet the specific needs of a business.
5. CLM software can be difficult to integrate with other business systems.
Average Prices of Contract Lifecycle Management (CLM) Software
The average price of CLM software varies depending on the type of software.
Contract creation software typically costs between $500 and $5,000.
while contract storage software often costs between $5,000 and $10,000.
Contract tracking software can cost between $10,000 and $20,000,
while contract negotiation software often costs between $20,000 and $30,000. Contract amendment software typically costs between $500 and $5,000.
Statistics of Small Businesses Using Contract Lifecycle Management (CLM) Software
A recent study found that 43% of small businesses use CLM software. The most common type of CLM software used by small businesses is contract creation software, followed by contract storage software, contract tracking software, and contract negotiation software.
The study also found that the most common reason for using CLM software is to improve contract visibility and control.
Other common reasons for using CLM software include reducing contract risks, improving contract compliance, and saving time and money on contract administration.
Average ROI When Using Contract Lifecycle Management (CLM) Software
The average ROI for businesses using CLM software is typically between 30% and 50%. ROI can be increased by implementing CLM software in conjunction with other business process improvement initiatives.
Top 10 Contract Lifecycle Management (CLM) Software
1. Adobe Sign: Adobe Sign is a cloud-based CLM software that helps businesses automate their contract management processes. Adobe Sign offers a number of features such as contract templates, contract storage, contract tracking, and contract amendment. Adobe Sign is a good choice for businesses that are looking for an all-in-one CLM solution.
2. DocuSign: DocuSign is a cloud-based CLM software that helps businesses automate their contract management processes. DocuSign offers a number of features such as contract templates, contract storage, contract tracking, and contract amendment. DocuSign is a good choice for businesses that are looking for an all-in-one CLM solution.
3. eSignLive: eSignLive is a cloud-based CLM software that helps businesses automate their contract management processes. eSignLive offers a number of features such as contract templates, contract storage, contract tracking, and contract amendment. eSignLive is a good choice for businesses that are looking for an all-in-one CLM solution.
4. RightSignature: RightSignature is a cloud-based CLM software that helps businesses automate their contract management processes. RightSignature offers a number of features such as contract templates, contract storage, contract tracking, and contract amendment. RightSignature is a good choice for businesses that are looking for an all-in-one CLM solution.
5. Scrive: Scrive is a cloud-based CLM software that helps businesses automate their contract management processes. Scrive offers a number of features such as contract templates, contract storage, contract tracking, and contract amendment. Scrive is a good choice for businesses that are looking for an all-in-one CLM solution.
6. Shake: Shake is a cloud-based CLM software that helps businesses automate their contract management processes. Shake offers a number of features such as contract templates, contract storage, contract tracking, and contract amendment. Shake is a good choice for businesses that are looking for an all-in-one CLM solution.
7. SignNow: SignNow is a cloud-based CLM software that helps businesses automate their contract management processes. SignNow offers a number of features such as contract templates, contract storage, contract tracking, and contract amendment. SignNow is a good choice for businesses that are looking for an all-in-one CLM solution.
8. Signtaurely: Signtaurely is a cloud-based CLM software that helps businesses automate their contract management processes. Signtaurely offers a number of features such as contract templates, contract storage, contract tracking, and contract amendment. Signtaurely is a good choice for businesses that are looking for an all-in-one CLM solution.
9. SkySignature: SkySignature is a cloud-based CLM software that helps businesses automate their contract management processes. SkySignature offers a number of features such as contract templates, contract storage, contract tracking, and contract amendment. SkySignature is a good choice for businesses that are looking for an all-in-one CLM solution.
10. Hellosign: Hellosign is a cloud-based CLM software that helps businesses automate their contract management processes. Hellosign offers a number of features such as contract templates, contract storage, contract tracking, and contract amendment. Hellosign is a good choice for businesses that are looking for an all-in-one CLM solution.
Conclusion
CLM software can give you better visibility into your contracts and help you make better decisions about renewals and other aspects of contract management. If you are looking for a way to improve your contract management process, then CLM software is a great option to consider. It can help you save time and money, reduce risk, and improve efficiency.