How many businesses are still settling for a manual, slow, inefficient and ineffective process when it comes to contract management? A strong and value added CLM can lead to significant improvements in cost savings and efficiency.
In order to avoid litigation and save money and to increase compliance with legal requirements, Contract Lifecycle Management (CLM) is undertaken which is the proactive, methodical management of a contract from initiation through award, compliance and renewal.
5 Reasons Your Business Must Implement CLM
1- Measurable results – The results are tangible, measurable and sustainable.
2- Reduced liability – An effective CLM contract lifecycle management results in reduced liability and higher productivity.
3- Increased cost savings – Optimizing the audit trail in contract management leads to increase cost savings. A recent study conducted by the International Association for Contract & Commercial Management reveals that companies who improve their contract lifecycle management adds upto as 9% into their profitability.
4- Upgraded delivery – Having a complete web based document enables full-text and keyword searches of contracts and therefore provides easy access thereby upgrading the entire delivery process. Many times legal contracts are integrated with operational contracts and translating the required documents is a tough task so legal translation services like those offered by Panorama languages can come handy. Having a uniform Contract Lifecycle Management makes everything clearer, transparent and measurable.
5- Enhanced business relationships – An effective CLM ensures that you comply with your contractual obligations, and that your customers, vendors and partners do the same. This in turn helps to have enhanced business relationship with your customers.
The Perils of Inadequate Lifecycle Management
Wastage of time – Staffs always engaged in the look outs of contracts, schedules, notes and data waste time and this leads to inefficient data management and loss of money.
Missed revenue opportunities – Absense of Ad-hoc processes and tools to provide the necessary functionality, visibility, reporting capabilities makes way for missed revenue opportunities.
Delay in delivery process – Not having an appropriate and proactive CLM in place might lead to late delivery and play a crucial role in degrading the customer relations.
How SAP Can Help?
SAP’s contract lifecycle management software supports your entire contract lifecycle. The life cycle of a contract starts with draft contract along with the required signatures and approvals. Then proper storage/repository is maintained and finally compliance management and optimization of the entire document takes place.
The new SAP composite for Contract Lifecycle Management (xCLM) is a solution to manage all business contracts of an enterprise from authoring to central storage and contract performance reporting. SAP xCLM is being developed from several key SAP assets including the contract management functionality of SAP ESourcing and the MS Word/Duet Legal Contract Authoring.
The main features of the xCLM solutions are:
- xCLM Dashboard with a set of unique features
- Central repository for clauses, templates and legal contracts
- Powerful attribute search and free text search capabilities
- Legacy contract and 3rd party contract upload
- MS Word/Duet contract authoring
- Approval for clauses, templates and legal contracts
- Legal compliance reporting
- Integration with ERP
- Integration into eSourcing RFx functionality
This is just the right time to have a uniform CLM because your company’s contracts are significant to the daily operations, because they represent all the business relationships throughout the enterprise.