Contract management involves a largely manual process for many organizations, becoming a time-consuming burden. If contract management is not done correctly, it can have a negative impact on businesses.
All organizations deal with thousands of contracts, but each one has its own set of deadlines, as well as other hidden risks. These risks, if they go unnoticed, can lead to non-compliance or cost overruns.
CLM (Contract lifecycle management) helps organizations deal with any number of contracts, and can help minimize risks involved with non-compliance.
Here I have listed some of the important benefits of contract management:
WHAT IS CLM (CONTRACT LIFECYCLE MANAGEMENT)?
A Contract can be simply defined as an agreement between multiple parties in which one or more parties have an obligation (or several) to the others.
Developing a contract requires drafting the document (which takes several stages of revision), negotiating terms, executing the contract, and then finally following the terms of the contract.