Choosing a Contract Management Tool

5 Factors to Consider in Choosing Your Contract Management Tool

We know that it is hard to select which contract management tool suits your business more. However, you do not need to worry anymore, as we are going to guide you on the factors you need to consider when choosing the best tool for you! Let’s start!

1. Consider the size of your organization and pricing

Considering the size of your organization and the pricing of a contract management tool are super important, and here is why. The size of your organization determines how big and complex your contract management needs are.

If you’re a big company, you might need a fancy tool with all the latest features. But if you’re a smaller business, a simpler and more affordable option might do the trick. In terms of pricing, we all want to be smart with our cash, right?

So, checking the pricing is necessary. You want a tool that fits your budget and gives you the best value for your money. Keep an eye out for any hidden fees, extra charges, or options to scale up or down as needed.

2. Check if the platform is easy to use

You want a contract management system that’s easy to use, plain, and simple. The success of the system depends on whether your team members will use it and find it convenient.

So, make sure to choose a tool that offers a positive user experience and is user-friendly. Choose a platform that is easy for your employees to navigate. That way, everyone will be happy to use it, and managing contracts will be a piece of cake!

3. Customized and integrated with other platforms

You should check if the contract management tool can be customized and integrated with other platforms because it gives you the freedom to make it work just the way you want and easily connect it with your other tools.

Customization lets you tweak the tool to fit your specific needs, like adding your own fields or templates. It’s like tailoring a suit to fit perfectly—everything is just right for you. Integration is like making all your apps talk to each other.

It saves you from the hassle of switching between different platforms and manually transferring data. It’s like having a smooth and seamless flow of information. So, by choosing a tool that can be customized and integrated, you’re making your life simpler and more efficient, and keeping everything in sync. It’s all about making things work together smoothly and hassle-free.

4. Check its ability to monitor contracts

Keeping an eye on your contracts is important to stay in the loop and be in control. That’s why it is smart to choose a contract management tool that lets you monitor your contracts. With contract monitoring, you can easily track the progress, stay on top of important dates, and make sure everyone’s doing their part.

It helps you catch any issues early on and make informed decisions. Plus, it improves communication and collaboration among all involved. So, when picking a contract management tool, make sure it’s got that contract monitoring feature that will help you handle the contracts efficiently.

5.  Check for security features

Checking for security features in a contract management tool is important. You want to keep your contract data safe and sound from any unauthorized access or breaches.

When the tool has strong security measures like encryption, firewalls, and access controls, you can rest easy knowing your sensitive information is well-protected. Not only that, but it’s also about following industry regulations.

Different industries have specific rules for data protection and privacy. By choosing a tool that meets these regulations, like GDPR or HIPAA, you stay compliant and avoid any legal or financial troubles down the line. Think about it: a secure tool boosts trust and confidence.

Your clients and partners will feel more comfortable sharing sensitive information and working on contracts with you. It shows that you take data security seriously, and that’s a great way to build strong relationships.

Also, in order to accurately protect yourself and the data you work with, you should use third-party applications. These can be antivirus software or simply tools for optimizing computer performance. They will help clear the cache, detect suspicious software, and remove unnecessary programs.

10 Contract Management Tools in Procurement

Contract management tools help procurement teams centralize, automate, and control the entire lifecycle of contracts, from creation and approval to compliance monitoring. These tools reduce risks, improve supplier relationships, and ensure that every agreement aligns with organizational policies and strategic goals.

1. Icertis Contract Intelligence

Icertis is one of the most recognized contract management tools, using AI to automate the contract lifecycle, from creation to obligation tracking. The platform provides full visibility into risks, clauses, and deadlines, minimizing procurement errors. Integrations with ERP and e-sourcing systems streamline data flow. With advanced analytics, procurement teams can make faster decisions and align contracts with company policies.

2. SAP Ariba Contract Management

SAP Ariba offers a centralized system for creating, approving, and tracking contracts across the entire procurement process. The tool standardizes contract templates and automates workflows, reducing manual tasks and compliance risks. Integration with Ariba Sourcing and Procurement modules ensures seamless data flow throughout the purchasing cycle. Users gain insights into supplier performance and key contract-related KPIs.

3. Coupa Contract Management

Coupa enables organizations to create, organize, and track contracts through an intuitive cloud platform. The system automatically analyzes supplier spend and compliance, linking contracts with actual orders and consumption. It offers alerts for expiring contracts and non-compliant items. With its integration into Coupa’s Business Spend Management (BSM) suite, procurement becomes more transparent and efficient.

4. DocuSign CLM

DocuSign CLM automates and standardizes the process of creating, approving, and storing contracts. It is especially useful in procurement because it accelerates contract signing, even in complex agreement structures. Integrations with ERP, CRM, and other business tools improve information flow. Built-in analytics support obligation tracking, deadline monitoring, and risk management throughout the contract lifecycle.

5. Agiloft Contract Lifecycle Management

Agiloft is a flexible and highly customizable CLM platform that uses automation to reduce manual work in procurement. Key features include AI-powered clause recognition, automated contract generation, and workflow orchestration. Thanks to its configurability, it easily adapts to different procurement policies and industries. The tool also enables detailed monitoring of contract and supplier performance.

6. PandaDoc for Procurement Contracts

PandaDoc simplifies contract creation and approval through a visual editor, templates, and automated workflows. Its e-signature capabilities speed up contract finalization in procurement processes. The system offers real-time document status tracking, improving transparency for teams. It is especially useful for small and medium-sized businesses seeking a simple, easy-to-use solution.

7. Concord Contract Management

Concord provides centralized contract management with a strong focus on collaboration and version control. The platform supports real-time contract editing, making communication between procurement teams and suppliers more efficient. Automated validation and deadline alerts help prevent delays and legal risks. As a cloud solution, Concord ensures procurement activities remain aligned with internal company policies.

8. Ironclad Digital Contracting

Ironclad is a modern CLM tool designed for legal and procurement teams that want full automation. The platform uses AI to identify key clauses, track obligations, and reduce contract-related risks. Its workflow engine enables faster internal approval processes. Ironclad integrates with tools such as Salesforce, Slack, and ERP systems, significantly improving operational efficiency.

9. ContractWorks

ContractWorks is a simple yet powerful contract management solution, ideal for organizations looking for quick implementation. It offers secure document storage, advanced search, and automated expiration alerts. Users can set granular access permissions for greater control over sensitive documents. The platform is known for its intuitive interface and cost-effective pricing.

10. JAGGAER Contracts

JAGGAER Contracts is designed for large procurement organizations that manage high volumes of contracts and suppliers. The system automates contract creation, approval, and tracking, with a strong emphasis on compliance and risk management. Integration with JAGGAER’s sourcing, supplier management, and procurement modules ensures full data connectivity. The tool helps procurement teams reduce costs and increase transparency across the entire contract landscape.

5 Real-Life Examples of Companies Using AI in Contract Management

As organizations handle thousands of contracts each year, manual review and monitoring often lead to delays, errors, and compliance risks. AI is transforming contract management by automating data extraction, improving visibility, and enabling faster, more accurate decision-making.

Below are real-life examples of companies that have successfully implemented AI to optimize their contract management processes.

1. Global FMCG Company Using Icertis Contract Intelligence

A global pharmaceutical and FMCG manufacturer implemented Icertis Contract Intelligence to centralize all procurement contracts across multiple business units worldwide. The platform provided complete visibility into supplier relationships, contractual obligations, and renewal cycles, significantly reducing errors and improving compliance. Another example from a European industrial automation company shows that Icertis shortened its contracting cycle from 72 to just 4 days, improving decision-making and reducing risk.

2. K2 Partnering Solutions Using DocuSign CLM

K2 Partnering Solutions, a global IT and consulting firm, uses DocuSign CLM to manage hundreds of contracts with clients and consultants, with a strong focus on GDPR compliance. Automation eliminated manual document creation and version tracking, significantly accelerating both procurement and legal workflows. A separate investment study showed that DocuSign CLM reduces contracting time and lowers administrative costs for organizations.

3. Carl Zeiss Using JAGGAER Contracts

Carl Zeiss, a global leader in optical technology, implemented JAGGAER to digitalize its complex global procurement processes involving thousands of suppliers. The system enabled centralized contract management, standardized workflows, and improved cost control. As a result, Zeiss increased procurement efficiency and achieved greater transparency across its supply chain operations.

4. Deutsche Post DHL Group Using JAGGAER for Global Procurement

Deutsche Post DHL Group uses JAGGAER to consolidate its previously fragmented procurement operations across different regions. The platform supports comprehensive contract visibility, better supplier oversight, and improved risk management. By digitalizing procurement, DHL reduced operational costs, increased transparency, and strengthened integration throughout the global supply chain.

5. Enterprise Companies Using SAP Ariba and Icertis Integration

Large enterprise organizations use a combined SAP Ariba and Icertis CLM ecosystem to unify their end-to-end procurement and contract management processes. This integration ensures alignment between contractual terms and actual purchase orders by automatically transferring obligations into ERP systems. Companies report better cost control, faster procurement cycles, and greater transparency throughout the contract lifecycle.

Conclusion

Selecting the right contract management tool is vital for business efficiency. This article defines contract management, emphasizing its role in overseeing the contract lifecycle and ensuring successful business partnerships.

It explores the benefits of tools, emphasizing automation, organization, and risk mitigation. Crucial factors for consideration include the organization’s size, pricing, ease of use, customization, integration capabilities, and the tool’s ability to monitor contracts.

Additionally, the article underscores the importance of security features in protecting sensitive contract data and maintaining regulatory compliance, guiding businesses towards informed choices for enhanced operational efficiency.