Managing contracts is a critical aspect of any business operation, proper handling of all agreements. However, managing contracts manually can be a time-consuming and error-prone process. That’s where contract management software comes in.
Contract management software makes contract processes easier by handling everything from creating to renewing contracts automatically. It centralizes and digitizes contract information, making it easily accessible and searchable. With contract management software, businesses can collaborate more effectively, ensuring efficient contract creation and approval processes.
In addition to simplifying contract management, this software also provides compliance management features, helping businesses stay on top of contractual obligations and regulatory requirements. It automates workflows, reduces manual errors, and integrates with other systems, improving efficiency and data accuracy.
Advanced contract management software incorporates artificial intelligence (AI) capabilities, offering features such as contract intelligence and automation. These AI-powered solutions can analyze contracts, identify risks, and automate routine tasks, further enhancing productivity and risk management.
Whether you are a small or large business, using contract management software streamlines the entire contract lifecycle.
What is Contract Management Software?
Contract management software refers to a digital solution that helps businesses streamline and automate their contract-related processes. It offers a range of core functionalities that facilitate the management of contracts throughout their lifecycle.
The contract lifecycle refers to the stages of a contract, from creation and contract negotiation to execution and renewal. Contract management software simplifies each stage of this process, making it easier to handle multiple contracts simultaneously.
The core functions of contract management software include contract drafting, negotiation, approval workflows, compliance management, and contract storage. These features allow businesses to efficiently create contracts, collaborate & ensure compliance. A central repository stores all contracts in a single place.
By automating these core functions, contract management software improves the efficiency and accuracy of contracting processes. It reduces manual errors, enhances collaboration among teams, and provides businesses with a comprehensive view of their contractual obligations.
Who should use a CLM platform?
Companies that want to handle more contracts without hiring more people like using contract management software. This is especially useful for fast-growing businesses dealing with a lot of contracts.
This handy tool isn’t just for one department — it helps different teams in a company. It makes handling contracts easier and helps the company grow better. Here is how a CLM can help each department:
Legal Team
The legal teams play a crucial role in dealing with contracts and overseeing the contracting process. With the help of contract management software, these in-house legal departments find it easier to handle contract templates.
Research from Forrester and Aberdeen indicates that it typically takes about 3.4 weeks to get contracts approved. However, studies suggest that using a CLM tool can cut down the overall time spent on contracting by a whopping 82%. This software isn’t just helpful in drafting contracts; it also gives a central place to keep track of all documents. The tool makes the business rely less on legal department, so they can spend more time on important strategic decisions.
Sales Team
Sales teams like it when deals close smoothly and don’t like anything that slows things down. A contract management software when implemented, so they can handle business contracts themselves instead of waiting on legal teams.
Many CLM Software works seamlessly with popular customer relationship management (CRM) systems like Salesforce, HubSpot, and others. With salesforce integration, document management becomes sales teams because they can use the tools they already know and like.
Finance Team
Finance teams like things to be straightforward when dealing with contracts. Finance teams ensure contracts align with billing, gaining clarity on expected revenue. Contract management software assists these teams in asking questions, generating detailed reporting stats, and analyzing contracts throughout.
A helpful CLM tool identifies any breaches, provides insights into finances, and highlights any risks associated with the agreement. It reduces risks and allows the finance department to stay proactive, ensuring ongoing compliance with the agreement.
Procurement Team
Procurement teams play a crucial role in managing a company’s spending. Making this important function work better doesn’t just save money but also makes the overall buying plans better. But, lots of purchasing teams still use manual processes, spreadsheets, and different systems, which causes problems and delays.
Using contract management software is a big help for supply chain & procurement teams. It makes it easy to track spending, makes approving contracts smoother, and helps teams work better with suppliers. This new way of doing things makes purchasing operations work better and gets things done more efficiently.
AI-powered Contract Management Software
Volody is one of the best contract management software out there in the market. Volody’s contract management platform leverages advanced AI and ML technologies to provide end-to-end contract management.
With Volody, you can extract key contract details from contracts, analyze contract terms, and identify risks and opportunities. Volody automates the contract creation process, approval workflows, and risk management, reducing manual errors and boosting the contracting process.
Volody’s user-friendly interface and intuitive workflows ensure a seamless user experience. Organizations can easily customize Volody to suit their needs and integrate with all systems used in the legal industry.
Volody’s CLM software uses AI to make contract management easier. It helps modern businesses work better by improving efficiency, managing risks, and provides a strategic advantage in managing contracts.
Volody’s AI CLM software can also integrate with all leading e-signature platforms like DocuSign, Adobe Sign, etc.
FAQs:
1. What is contract management software?
A contract management system is a digital solution that helps businesses streamline, organize, and automate the entire contract lifecycle. It facilitates tasks such as contract creation, approval workflows, storage, tracking, and compliance management.
2. How to Choose Contract Lifecycle Management Software?
When picking contract lifecycle management (CLM) software, consider factors like size, industry, and needed features. Look at integration, user-friendliness, scalability, and pricing. Read research options, read reviews, and request demos from trusted mediums to ensure alignment with your needs.
3. Who uses contract management software?
Different professionals and business verticals like legal, procurement, sales, marketing, and finance actively use CLM software. It’s super helpful for business verticals dealing with lots of contracts and complicated rules.
4. Is contract management software suitable for small businesses?
Contract management software can grow with your business and helps companies of any size save time and money. Even small businesses can use it to work more efficiently and keep up with the competition by automating tasks.
5. Can contract management software integrate with other business tools?
A lot of contract management software solutions can connect with CRM and ERP systems such as HubSpot and Salesforce. This makes things more efficient and keeps the data consistent. When these systems work together, they can easily share information without any problems.
6. Can contract management software help with regulatory compliance?
Yes, contract lifecycle management software can automatically track compliance, making sure contracts follow the law. By using automated compliance checks, companies lower the chance of breaking rules and facing fines.
To conclude,
Contract management software is really important for businesses today. It helps make things run smoother and reduces risks. This software has great features like automation, tools for following rules, and can easily work with other systems. It’s useful for all kinds of industries and departments.
Using Volody’s contract management software improves the contracting process by speeding things up and aiding in decision-making.
When you’re picking the right software, think about things like how much it costs, if it can grow with your business, and if you can get help when you need it. It’s important to plan carefully when you’re putting in contract management solutions to avoid common problems. Keep up with how technology is changing so you can help your organization succeed with good contract management.
