Contract lifecycle management (CLM) software is used to streamline the entire contract lifecycle process, from pre-signature to post-signature. CLM software can simplify the process of managing contracts across key lifecycle stages such as contract creation, negotiation, execution, approval, and renewal.
CLM software tracks milestones, deadlines, and obligations outlined in the contract, sending automated reminders and notifications to relevant parties. While traditionally utilized by legal teams, CLM software is widely used by other teams within an organization, such as sales, procurement, and finance. By automating contract workflows, these tools help manage high volumes of routine agreements more efficiently.
Unlike contract management software, CLM software helps users manage actions post-signature (or post-execution), including obligation tracking, performance and compliance management, and dispute resolutions. These tools provide a centralized platform for storing all obligation terms and communications. This assists businesses in mitigating risks, ensuring all internal and external parties understand and deliver on their contractual obligations. Having a centralized repository and access for collaboration, shared automated workflows, and visibility to contract performance analytics helps improve compliance and overall efficiency for managing contracts.
CLM software commonly integrates with customer relationship management (CRM) software, proposal software, accounting software, and e-signature software.
To qualify for inclusion in the Contract Lifecycle Management (CLM) category, a product must:
Provide all the features of a contract management solution
Manage the entire contract lifecycle from start to finish
Track and monitor the contract creation and delivery process
Allow users to estimate the efficiency of the contract lifecycle and find ways to improve it
Provide regular reporting to internal and relevant external parties about the contracts and performance with respect to obligations
Comply with industry requirements, government regulations, audits, and response to lawsuits
