Contract lifecycle management (CLM) is the process of managing contracts from creation to execution to termination. CLM involves various tasks, such as drafting, reviewing, approving, signing, storing, monitoring, and renewing contracts. CLM is crucial for any business, as it affects revenue, costs, compliance, and risk.
However, CLM can also be challenging, especially for small and medium businesses (SMBs) that have limited resources and expertise. Many SMBs still rely on manual and inefficient methods for CLM, such as paper, email, spreadsheets, and shared folders. These methods can lead to problems, such as:
- Lost or misplaced contracts: It can be hard to keep track of contracts when they are scattered across different locations and formats. This can result in losing important documents or missing deadlines.
- Lack of visibility and control: It can be difficult to access and update contracts when they are not centralized and standardized. This can result in poor performance, errors, disputes, and penalties.
- Wasted time and money: It can be time-consuming and costly to create, negotiate, and manage contracts manually. This can result in lower productivity, higher expenses, and missed opportunities.
That's why SMBs need to streamline their CLM process by using smart strategies and tools. Here are some tips on how to do that:
- Outsource non-essential activities: Some tasks in CLM are too tedious or complex to be performed by SMBs, such as drafting, reviewing, or negotiating contracts. These tasks can be outsourced to external experts or service providers, who can offer better quality, speed, and cost-effectiveness. This can free up time and resources for SMBs to focus on their core business activities.
- Empower employees to eliminate unnecessary or redundant processes: Sometimes, SMBs have outdated or inefficient processes in their CLM system, such as multiple approvals, duplicate data entry, or manual tracking. These processes can be eliminated or simplified by empowering employees to identify and remove them. This can improve the workflow and productivity of the CLM team.
- Identify and fix small inefficiencies: Even small inefficiencies in CLM can add up and cause delays, errors, or oversights. For example, a missing signature, a wrong date, or a misplaced document can cause a contract to be invalid or unenforceable. SMBs should regularly audit and monitor their CLM processes and identify and fix any small inefficiencies that may arise.
- Use CLM software solutions: One of the best ways to streamline CLM is to use CLM software solutions that automate and optimize the entire process. CLM software solutions can provide SMBs with a centralized and searchable repository for contracts, enable collaboration and communication between departments and parties, facilitate proactive risk management and compliance, and generate insights and reports on contract performance and value. CLM software solutions can also integrate with other business systems and tools, such as CRM, ERP, and accounting software.
One example of a CLM software solution that is designed for SMBs is Recontracted. Recontracted is a SaaS app that helps finance, sales, procurement and operations teams manage contracts more easily and more effectively than they ever thought possible. Recontracted streamlines the entire CLM process by using AI and automation. Here are some of the benefits of using Recontracted for CLM:
- Increase visibility and control: Recontracted helps you store and organize contracts in a secure and searchable cloud database. Recontracted also helps you monitor and manage contracts by providing alerts, insights, and reports.
- Improve performance and compliance: Recontracted helps you optimize contract value by identifying renewal and upsell opportunities. Recontracted also helps you avoid contract risks by ensuring compliance with contractual obligations and regulations.
- Ask questions and get answers: Recontracted helps you understand your contracts better by using natural language processing. You can ask questions about your contracts and get answers from the AI. For example, you can ask “What is the termination clause for this contract?” or “How much do we owe this vendor?” and get an instant response from the AI.
- Get insights and recommendations: Recontracted helps you improve your contract management by using data analysis and machine learning. You can get insights and recommendations on how to reduce costs, increase revenue, or negotiate better terms. For example, you can get insights on how to avoid overpaying vendors or undercharging customers, or recommendations on how to negotiate favorable terms with suppliers.
Recontracted is designed for SMBs, so it is easy to use, affordable, and scalable. You can get started with Recontracted in minutes, without any setup or installation.
Recontracted is currently offering a 30-day free trial, no credit card required. If you want to streamline your CLM process and take your business to the next level, sign up for a free trial today. You will be amazed by how much Recontracted can simplify and improve your contract management.
