What is a CLM and why is it important
Contracts are crucial for smooth business operations, just like customers are. Contract Lifecycle Management (CLM) is vital for success, streamlining the entire contract lifecycle from creation to execution. It's a specialist solution for contract management and negotiation. Read this full article to know what, why and how to use it for your team and business.
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When a company is starting out, having contracts is crucial to not lose clients and key partners. Having a template ready can save headaches.
As the company grows, scales, or gets global, streamlining operations becomes a necessity. These organisations already have their own templates but need to standardise them, then automate to gain speed without losing momentum or wasting talented resources.
Cheers is a contract platform designed to support this aspect of the business. Continue reading to know more.
What is CLM?
At its core, Contract Lifecycle Management (CLM) is a digital platform that automates and facilitates the management of contracts, offering a secure and non-technical approach for businesses.
Key Features of CLM
CLM solutions offer features tailored to the needs of modern businesses:
- Template-based Contract Creation: Easily generate contracts using customizable templates, ensuring consistency and accuracy across all agreements.
- Signature Collection and Consent Management: Seamlessly collect signatures and consents from relevant parties, eliminating the need for cumbersome paperwork and manual processes.
- Collaboration Tools: Facilitate collaboration among internal stakeholders and colleagues by providing a centralised platform for discussions, document sharing, and feedback.
- Version Control: Keep track of contract revisions and updates with version control capabilities, ensuring that all parties are working with the latest document.
How CLM Works
CLM operates through a user-friendly interface that guides users through each stage of the contract lifecycle:
- Contract Creation: Users can choose from pre-designed templates or create custom contracts tailored to their specific needs.
- Collaboration: Internal stakeholders and colleagues can collaborate in real-time, making necessary revisions and approvals within the platform.
- Signature Collection: Once the contract is finalised, relevant parties can digitally sign the document, expediting the execution process.
- Monitoring and Compliance: CLM solutions offer robust monitoring and compliance features to ensure that contracts are adhered to and deadlines are met.
- Integration with Other Tools
To further enhance efficiency, CLM solutions seamlessly integrate with other essential business tools such as:
- CRMs (Customer Relationship Management): Sync contract data with CRM platforms to streamline customer interactions and improve data accuracy.
- Project Management Tools: Integrate with project management software to align contract milestones with project timelines, enhancing project planning and execution.
- Payment Methods: Connect with payment processing systems to automate invoicing and payment collection, reducing administrative overhead and improving cash flow.
- ROI of CLM
Implementing a CLM solution offers tangible benefits to businesses, including:
- Cost Savings: By automating contract management processes, businesses can reduce administrative costs and minimise the risk of errors, leading to significant cost savings.
- Time Efficiency: Streamlining contract workflows accelerates the contract lifecycle, enabling faster deal closures and revenue recognition.
- Risk Mitigation: CLM solutions enhance compliance and reduce the risk of legal disputes, potentially saving companies millions in legal fees and penalties.
- Supply Chain Optimization: For businesses operating within complex supply chains, CLM ensures contractual obligations are met, minimising disruptions and optimising supply chain performance.
- Studies have shown that implementing CLM can save an average of 10% of annual company revenue, with even greater savings in industries where deadlines, penalties, and supply chain efficiency are critical factors.
In conclusion, CLM is a game-changer for businesses seeking to streamline contract management processes, enhance collaboration, and drive efficiency. By leveraging CLM solutions, companies can unlock significant cost savings, improve compliance, and gain a competitive edge in today's fast-paced business environment.
You don't need to be huge to have a CLM; if you need contracts, we’ve got you covered.
If you already have steady contracts on a monthly basis, you need speed, compliance, and efficiency. Through our data-driven approach, you can make your contracts work for you.
Get in touch with our team to get started at hello@cheerscontracts.com or begin using this link.
