Contract Creation, Negotiation, and Management are a regular and important part of every enterprise. However, each of these steps is significantly time-consuming and prone to errors, driving the need to implement contract management software. The CMS or CLM (Contract lifecycle management software) gives a quick result with reduced to null audit and financial risks.
Businesses across industries are well aware of the benefits of CLM execution in their systems. In fact, as per stats, the global contact management software market is estimated to reach a CAGR of 16.9% (within 2022-2027) with a worth of 3.84 billion USD by 2026.
The article compiles a list of standard key features that a reliable CLM system must have. Let’s read ahead to explore these features.
Contract Management Software Key Features
- A well-organised and centralised contract repository
A preferable contract management software must feature a centralised database that can electronically store all your contracts. Not only do you get quick access to contracts data but also different options to view information. For instance, you can access the data at the organisation, contract, document, task, or contact level. This type of flexibility isn’t possible with usual shared document folders and spreadsheets. The most appealing part is that it allows you and your team to access all the contract-based documents anytime, anywhere, and with any device. It is possible due to the centralised cloud-based repository.
- Functions to automate common contract tasks
As a professional, you can determine how much time you can save if software automates all your time-consuming tasks. Software with an Amendment Menu Option can generate a new contract version and saves the previous contract version for reference. Next, through the version history of a contract, you can check out your preferred version. This function helps you in keeping track of any changes made in the contract. It can also be leveraged for a better audit trail.
- Content management software featuring reports and dashboards
A standard reporting and dashboard is an essential feature that helps to gain and visualise workable insights. An advanced contract lifecycle management software enables you to build, save, and distribute your reports in no time. The service helps businesses to track KPIs, helping them in optimising their contract performance and processing.
- Contracting clause and pre-approved template libraries
These features automate the document assembling process depending on the unique business regulations. They ensure the use of the most recent format and language in your contracts. It allows users with a non-legal background to prepare professional and cut-to-the-point contracts. Thus, with the saved time, your legal team can put effort into implementing other valuable strategic activities.
As per Thomson Reuters, contract management automation has saved lawyers around 82% of their work time.
- Content management software embedded with electronic signature
Paperless solutions are advantageous for businesses on many levels. It gives you control over your business’s entire contract lifecycle process. It allows you to track a contract from its Initial Draft> Review and Approval Phase> Final execution> Use in system tools.
The software should offer integration with the best E-signature providers. The mobile-first electronic signature feature enables professionals to pass the signature from anywhere. Today, E-signatures are considered to be the most convenient and reliable method to get important documents signed and approved online. By 2030, the E-signature market might hit up to a CAGR of 26.66% globally, as stated by Forbes.
- Automated alert rules set-up
No business wants to miss important contract obligations and deadlines, and the feature of Automated Alert Rules can ensure that you don’t miss any. It allows automated key date alerts set up depending on the date field mentioned in the contract. However, it would help if you created an alert rule for software to follow:
- When to initiate sending alerts: Prior, on, or later to the mentioned date.
- Frequency of sending alerts.
- Formate: in-system notice, emails.
- Advanced notice: 90/30/60 days advance notice of service expiration.
A study by PricewaterhouseCoopers suggests that execution of CLM software can save around 2% of annual costs of a business by reducing non-compliance and inaccuracies.
- Powerful full-text search capabilities
Aside from keeping your data in a centralised database, you should be able to timely search the exact data you need as well. Choose a system that integrates full-text search features. Usually, such a feature uses optical character recognition to scan and index documents for a quick search. Another point to consider is that you should be able to export and report the results to a file when needed.
Make the pointers, as mentioned earlier, a benchmark to find the best contract management software for your business. Procol is known to provide the most user-friendly, flexible, business-grade secure, and affordable procurement software in the current market. Its easy-to-use interface allows you to optimise your procurement management with a quick under seven days deployment.