Contract Lifecycle Management Software — The Ultimate Guide of 2023

Integrating contract lifecycle management software is one of the best ways to manage contracts in a company. However, what is it?

In this article, we will discuss what contract lifecycle management software is. We will also discuss why you need it and show you the best software available nowadays to streamline your contracts. 

After reading this article, you will have a great understanding of contract lifecycle management software. You will also know some of the best software that you can integrate into your process. Thus, you will be able to know what software best suits your operations. 

Whatis a Contract Lifecycle? 

Contract lifecycle is the process of how contracts are created and managed. It details the stages of the process of contracts from drafting to post-signature tracking.

Although some companies have their own stages of contracts, they still follow the same way in which the contracts will be created, reviewed, negotiated, signed, tracked, and renewed. 

However, contracts are complex documents and it is typical that it moves back and forth across their lifecycle. For example, when a contract is being discussed, it is more likely to go back to the reviewing stage by the other party. Then, once the changes are accepted, the flow of the process will now continue. 

This is where contract lifecycle management comes into mind. It automates and streamlines the contract processes at each stage. By creating a unified and efficient process, companies and suppliers can save time and reduce errors when discussing contracts. 

What is a Contract LifecycleManagement Software?

Almost 60 to 80% of companies are governed by their contracts. Thus, why it is a significant part of the organization and probably not the most fun part of it. 

According to an investment banking company, Goldman Sachs, automating contract management speeds up sales negotiation cycles by up to 50%. Additionally, it removes inaccurate payments by 75 to 90% and decreases the operating and processing costs related to contact management by up to 30%. Therefore, a good reason to integrate contract lifecycle management software in your company. 

Contract lifecycle management software is used to smoothen the contract process and helps other teams in creating their own contracts with templates. 

Most of this software is designed to provide visibility into corporate spending, create ways in making the contract process efficient, and lower administrative costs. Thus, it drives immediate and long-term value for the company. 

The NeedFor a Contract Lifecycle Management

As businesses continue to grow, the increasing contract volumes will be difficult to manage, especially by using Word, Excel, and shared Drives only. 

When this happens, legal teams of businesses will be having a hard time managing all the contracts. As these problems arise, they may ask themselves these questions:

• What is in my contracts?
• Where can I find the recent version of these contracts?
• Who owns this contract? 

This is the time when businesses consider implementing contract lifecycle management software. Thus, why many growing businesses are starting to look for contract lifecycle management software that suits them well.