Overview of the Contract Management and Contract Lifecycle Management solutions

Onespire Ltd.

As more and more businesses seek to digitize their legal processes, it is crucial that contracts are easy to track, review, and secure. We review the effective and proactive tools of contract lifecycle management and contract management in our post.

Introduction

With the expansion of digital possibilities, the contract management processes of companies can be significantly simplified and accelerated, thereby the amount of resources required for signing contracts can also be greatly reduced.

As a result of a well-executed implementation of a contract management or contract lifecycle management solution, company processes covering the agreement governance activities become more transparent and easier to monitor.

Obtaining information about Contract Lifecycle Management (CLM) systems and automating the company’s legal processes can reduce the organization’s risks by minimizing the number of missed obligations and increase compliance with legal requirements.

Contract Management solutions

What do we mean by contract lifecycle management, and what process steps does a CLM solution cover?

Simply put, the process of contract lifecycle management follows the entire lifecycle of a written agreement, from the creation of the document to its termination.

 

Main process steps typically covered by CLM solutions

  • Formulating the need for the contract, during which the necessity for concluding a contract is generated by the business users.
  • Creation of the draft contract, or the origination of the contract document, which can be unique, or a draft created from an approved template.
  • Supporting the contracting process, managing, and commenting on different contract versions, involving organizational actors in the contracting and commenting process, such as various business actors, financial and legal service approvers.
  • Monitoring the contract approval process, approving the agreed draft contract in accordance with company regulations, taking into account approval levels, the four eyes principle, contract reconciliation and support obligations.
  • Signing and entering into force of the contract, which can be done by electronic signature or following the traditional paper-based method.
  • Follow-up of the contract, monitoring the contractual milestones, values and dates, assigning and executing the tasks related to the different roles linked to the milestones.
  • Contract renewal, optional contract additions, withdrawals, and modifications, as well as the management of the so-called contract chains and structures that are interrelated.
  • Termination, closure of the contract, as well as the performance of various tasks related to the termination.

Fundamental benefits of contract lifecycle management solutions for organizations

A contract lifecycle management solution supports all steps of the entire contract lifecycle with workflows and notifications. During the process steps, it can be easily and transparently determined who a given task belongs to, what deadlines are associated with each activity, and what is the status of the given contract.

Using a well-chosen and properly adapted CLM system speeds up the entire contracting process. In addition, their advantage for suppliers is that contracts can be put into effect more quickly, which means that revenues can be generated sooner.

Contract lifecycle management solutions

One of the main elements of contract management systems is the digital contract repository, where all actors have access to company agreements, their descriptive data, or a specific part of their data in a regulated manner, protected by authorization management. Company contracts stored in the system can be searched and filtered by metadata, thus, supported by digital services, the paper-based storage of contracts can be completely replaced.

The electronic contract repository, integrated with timestamp and digital signature services, fully meets all requirements for digital document storage. In addition to eliminating the paper-based storage of contracts, the company level approval of agreements can also be done quickly, conveniently, and simply with a few clicks. In the case of certain types of contracts, the validation of documents can be fully automated, which on the one hand greatly speeds up the process, and on the other hand, significant costs and resources can be saved, as there is no need to make an appointment, to travel or to post, and there is no need for additional negotiations.

During the preparation of the company contract repository, the digitization of previously concluded, paper-based documents provides high added value. Using artificial intelligence, post-processing of paper-based contracts can be done with minimal human intervention. During the uploading process, after scanning the contracts, the content parts of the various types of agreements are processed and then stored in a structured way with the help of AI algorithms, thereby making the entire text of the contracts readable for the search algorithms.

The implementation of a well-selected contract management system provides a high added value for the company. However, for the long-term success of the solution, the exact definition of the processes to be carried out during use, with particular regard to access rights, is essential.

Our company’s services and solutions related to contract management and contract lifecycle management

If you would like to learn more about how a modern contract management system integrated with artificial intelligence can speed up and simplify the relevant processes in your company, please contact our experts!

DocuLine Enterprise DMS

If you are interested in AI-supported document processing solutions, discover DocuLine, an application developed by our company, which supports efficient operation with flexible and modern functions in the field of digitization and automation of work processes!

Using the system makes administrative processes more efficient and helps internal communication. You can store documents securely and protected by permissions, avoiding unauthorized access. The application offers remote access, which enables effective home office work. Don’t waste your time with repetitive manual tasks, free up your resources by digitizing and automating processes.

Overview of the Contract Management and Contract Lifecycle Management solutions

Author: Zsombor Bereczki

Images made with generative AI by Vanda Kocsis

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