Posted in Operations and Supply Chain Terms, Total Reads: 508
CLM stands for Contract Lifecycle Management. It’s used to manage a contract from initiation till renewal including approval, compliance etc. Contract management has its own complexity which arises from incorrect language, pending approvals, non compliance, non visibility etc. CLM minimizes these complexities through streamlined process and hence shorten the approval time and improves compliance. It also mitigates risks arising from language through standardized language. In this way, it reduces costs and increases efficiency.
The various features of CLM are as below:
CLM captures different contracts, creates repository of contracts and eases the tracking of particular contract at the time of need. It has different contract formats and libraries that can be used by business and legal users to create new contracts in a manner that it mitigates complexity and risk involved. It improves approval and signature process, decreasing the approval cycle. Its repository helps in analyzing the risks beforehand and takes proper steps.
You may have different motivation to implement CLM like better compliance, improvement in approval time, risk mitigation etc. Suppose you want to create a business contract. In CLM, there are standard formats and you can choose a format as per your need. It also has libraries in standard language that minimizes the error or misinterpretation due to language. Similarly, you may want to improve approval rate, CLM notifies incomplete approvals and improves visibility in the whole process. CLM helps you understand your contract and hence the business well.