A contract is an important legal document, and businesses have to deal with a lot of it, relating to their employees, partners, suppliers, clients, or customers. Managing all these contracts and tracking their expiry can be quite demanding.
Today, you can find many CLM (contract lifecycle management) software systems, which can help you track the lifecycle of a contract from its inception till its expiry. Before you purchase one, you need to know about the things you should look for in this software.
Find A CLM Solution That Fits Your Organization’s Needs
You will need to analyze what your organization needs before choosing any such software. You can select it based on your existing systems and internal structure. However, you need to make sure that your software is scalable and can keep up with the growth of your organization and departments.
If you work in an industry that requires compliance with KYC/AML, HIPAA, or FedRAMP, your software should be capable of accessing the risks.
ReducesTime Through End-To-End Automation
A CLM software should be capable of streamlining every step involved in the contract management process. If it has a pre-approved contract template, it will accelerate the drafting process and eliminate any chances of human error. So, with just a few tweaks, you can redraft the contracts. Make sure your software has drag-and-drop tools so that the whole process of contract routing and communication to contributors becomes easier.
Provides AI-Enabled Search Tools
A contract lifecycle management software offers you ways to store and retrieve documents. Therefore, your software should provide you quick search results using artificial intelligence (AI) when you’re searching for a record.
A software that can wade through numerous contracts and search within the document to find what you’re looking for can be a real timesaver. As the AI-based CLM software uses the previous search data and the keywords, it can fill in for the correct results even if you make any typo errors or write some irrelevant keywords.
Offers Risk Management Through Contract Analytics
Manually analyzing the contracts can drain your resources and increase the chances of human error. So, you need to have software that offers contract analytics so you can identify and mitigate errors.
For example, if a company wants to define ‘breach of confidentiality, its definition should be the same across all departments. If any changes are made to it, they should be incorporated quickly and correctly to avoid any damage due to the variation.
Gives Real-Time Alerts for Deadlines
Staying on top of your deadlines is central to risk management. It can take hours for your administrative teams to review and track the deadlines of the contracts to make sure you don’t miss any renewal or risk penalties. A contract lifecycle management software should be able to extract the required data and organize it, so you know when a contract is up for renewal. Look for software that gives real-time alerts for impending deadlines.
Your contract lifecycle management should be able to save your time and improve your efficiency. It should evolve with the industry needs so that you will be prepared for the future. Keep in mind your company’s needs and choose a CLM software that fulfills its needs and empowers it for future growth.