6 Contract Management Software Benefits For Enterprise Success
A single contract contains thousands of data points, from payment details and delivery obligations to legal clauses and third-party metadata. When enterprise teams are tasked with drafting, monitoring, and analyzing the specifics of each contract, traditional methods won’t cut it and can put the business at risk.
Contract management software allows teams to house agreements in a central repository and make contracts dynamic documents that can offer benefits manual methods can’t measure up to.
Keep reading to learn how this software works, the incredible benefits it offers, and how you can use its advanced technology to accelerate your contracting processes for superior business operations.
What Does Contract Management Software Do?
Contract lifecycle management (CLM) software allows teams across the business to:
- Streamline contract setup and storage in a centralized repository
- Improve drafting and negotiation by leveraging templates and clause libraries
- Enhance analytics with AI-driven data extraction
- Support obligation management with automated performance tracking
- Simplify reporting on intuitive dashboards
All of these capabilities feed into the real, everyday benefits that come with implementing enterprise CLM software.
Top Six Benefits of CLM Software
While you may think CLM software just makes a few daily tasks easier, the benefits you reap go well beyond improving your day-to-day. Here are some of the real impacts implementing CLM software can have on your contracting operations.
1. Maximized Risk Reduction
Manual methods of contract management leave you open to legal, financial, and ethical risks over time. Contract lifecycle management software delivers the visibility and connectivity you need to keep your business safe.
When your teams are no longer bouncing between disconnected systems and can easily access dynamic insights from contracts, they can establish better risk management processes and spot potential crises well before they happen.
This can be done in the form of:
- Identifying non-compliant or low-performing suppliers
- Finding embedded contract language that does not align with your business values
- Quickly searching for contracts that contain specific clauses
2. Improved Collaboration
Your teams should not work in siloes. All this does is put the business at risk for lost revenue, unfulfilled obligations, and missed deadlines. Instead, contracting at the enterprise level should essentially be a collaborative process.
CLM software breaks down the barriers between teams and allows for stronger collaboration as they work to deliver on certain areas of an agreement. This allows for fewer errors, faster time-to-close, and better business outcomes.
3. Increased Cost Savings
As the modern business environment demands more speed and efficiency of enterprise teams, any new technology implementation must be seen as an investment. AI-powered CLM software is one that pays for itself over time.
As teams across the organization use AI technology to closely track contract language and obligations, avoid invoicing errors, reduce risk exposure, and increase productivity, your business generates more value that exceeds the initial investment.
Plus, as you reap the benefits of contract management software, you can ensure you get the most value possible from your contracts.
4. Extract Maximum Contract Value
When you make a deal with a vendor, customer, or partner, you expect to get a lot out of it, right? Without an efficient way to manage contracts, obligations, and performance, your organization can experience revenue-stunting contract value leakage.
Enterprise CLM software gives teams greater visibility into contracts, tracks obligations, and extracts key data points so your business can reduce risk and maximize contract value across every deal.
5. Increase Productivity
With traditional methods, lawyers trained to be strategic decision-makers spend a lot of time manually drafting contracts, reviewing terms, and redlining inside static documents.
AI-powered CLM software allows legal teams to develop standardized templates with approved language, automatically detect renewal dates, and reduce time-to-contract with configurable workflows and legal analysis.
This achieves two impactful things:
- You eliminate the tiresome, time-consuming tasks of manual contracting processes.
- Legal teams can focus on strategic, proactive, risk-mitigating work that only humans with deep expertise can do.
6. Improve Business Relationships
Maintaining strong business relationships ensures steady revenue streams and avoids conflict.
When you integrate enterprise CLM software with your CRM, everyone can easily identify and meet their obligations within that platform. This cuts down on back-and-forth, reduces mistakes, and lowers the chances of problems.
Faster contract processing also boosts customer happiness and helps organizations seize time-sensitive opportunities, giving you a competitive edge in the market.
How Generative AI Improves CLM Software
Artificial intelligence delivers a form of automation that is eons faster than manual methods. The McKinsey Global Institute predicts that 30% of hours worked today will likely be automated by 2030 with generative AI.
When it comes to CLM, GenAI supports smarter, more efficient contract management by allowing you to:
- Streamline Contract Creation: GenAI can produce first drafts of contracts using pre-approved templates and clauses to ensure the language matches your preferences.
- Speed Up Legal Review: Use AI to scan legal documents at scale, complete legal reviews, and make suggested changes within minutes. Give yourself more time to focus on strategic tasks.
- Automate Risk Discovery: Let AI independently identify missing or problematic clauses and suggest alternatives or additions to reduce risk during negotiations.
- Access Deep Legal Insights: Get AI-powered contract intelligence based on past performance to develop stronger negotiation tactics, present compelling counteroffers, and find ideal alternatives to unfavorable contract terms.
Experience the Benefits of Contract Management Software
As global happenings and ever-increasing regulatory standards present organizations with further challenges to face, you need a better way to navigate contract management.