Best Contract Lifecycle Management (CLM) Software of 2024

Use the comparison tool below to compare the top Contract Lifecycle Management (CLM) software on the market. You can filter results by user reviews, pricing, features, platform, region, support options, integrations, and more.

Overview of CLM Software

Contract lifecycle management (CLM) software is a type of technology that automates and streamlines the entire contract process, from creation to execution to renewal. It enables organizations of all sizes and industries to effectively manage their contracts, reduce risks, increase efficiency, and improve overall contract performance.

The CLM software market has been growing rapidly in recent years, with the increasing need for businesses to efficiently manage their contracts in today's complex business landscape. This software helps companies stay compliant with laws and regulations while also saving time and resources.

The contract lifecycle refers to the different stages a contract goes through from its creation to its termination or expiration. These stages include planning, negotiation, approval, execution, monitoring, amendments or renewals, and finally termination. CLM software typically covers all these stages and provides tools for managing each step effectively.

One of the main benefits of using CLM software is that it centralizes all contracts into one system, making them easily accessible to authorized personnel. This eliminates the need for manual processes such as storing paper documents or searching through multiple systems for specific contracts. The centralized storage also ensures there is no loss of important documents.

Another advantage of using CLM software is that it automates various tasks throughout the contract process. For example, templates can be created for commonly used clauses or terms which can then be automatically inserted into new contracts. This saves time and reduces the risk of human error.

CLM software also offers features like electronic signature capabilities that facilitate faster contract execution by eliminating the need for physical signatures on paper documents. Additionally, alerts and notifications can be set up within the system to remind teams about upcoming deadlines or milestones related to a particular contract.

Moreover, CLM software offers reporting and analytics functionality allowing businesses to gain insights into their contracting process. This data can help identify areas where improvements can be made or risks can be mitigated in future contracts. It also helps track key metrics such as contract value, expiration dates, and performance of vendors or suppliers.

In terms of security, CLM software offers various levels of access permissions to ensure the confidentiality of sensitive contract information. This means that only authorized users can access specific contracts or parts of the system.

CLM software can also integrate with other business systems such as customer relationship management (CRM) or enterprise resource planning (ERP) systems. This allows for seamless data sharing and reduces manual data entry efforts.

Contract lifecycle management software is a powerful tool that helps organizations manage their contracts more efficiently and effectively. It centralizes all contracts in one place, automates various tasks, provides valuable insights through reporting and analytics, ensures security, and integrates with other business systems. By implementing CLM software, businesses can improve their contract management process and drive better results for their organization.

Reasons To Use CLM Software

1. Streamlined contract creation and management: CLM software automates the entire contract lifecycle, from creation to execution to renewal. This eliminates manual processes and reduces the chances of errors or delays, making the overall process much more efficient.
2. Increased visibility and control: With CLM software, all contracts are stored in a centralized repository, providing easy access for all stakeholders involved in the contract process. This allows for better monitoring, tracking, and reporting on contracts, resulting in increased control over critical business documents.
3. Risk mitigation: Non-compliance with contractual obligations can result in legal actions and financial losses for organizations. CLM software helps mitigate these risks by ensuring that contracts are executed according to agreed terms and conditions.
4. Improved collaboration: When multiple departments or individuals are involved in the contract process, it can often lead to miscommunication and delays. CLM software enables real-time collaboration among all parties involved in the contract process, promoting transparency and accountability.
5. Enhanced negotiation capabilities: Negotiation is a key part of every contract process. With CLM software, businesses can use data analytics tools to analyze past performance metrics such as cycle times or approval rates to negotiate more effectively with vendors or customers.
6. Better vendor management: Contracts with suppliers play a crucial role in an organization's success. CLM software provides a holistic view of all vendor contracts, including pricing agreements and delivery schedules which helps businesses make informed decisions about ongoing partnerships.
7. Automated notifications: Keeping track of important deadlines such as expiration dates or automatic renewals can be difficult without proper tools in place. CLM software sends automated notifications when important milestones are approaching so that organizations do not miss out on time-sensitive opportunities or fall victim to costly penalties.
8. Cost savings: By automating manual processes like document preparation and manually monitoring compliance requirements, businesses using CLM software save time while also reducing overhead costs associated with traditional paper-based documentation methods.
9. Flexibility and scalability: CLM software can be tailored to meet the specific needs of each organization, allowing for flexibility in managing different types of contracts across various industries. It also enables businesses to easily scale up or down their contract management processes as needed.
10. Centralized audit trail: Compliance audits are becoming increasingly stringent, making it critical for organizations to maintain accurate records of all their contracts. CLM software keeps a detailed audit trail of all contract activities, providing evidence of compliance and helping organizations pass any regulatory scrutiny with ease.

Contract lifecycle management software offers numerous benefits to organizations by providing a centralized platform for efficient contract creation, tracking, and monitoring. With increased control, enhanced negotiation capabilities, and automated notifications for important milestones, businesses can optimize their contract processes and mitigate risks while also reducing costs associated with manual methods. Furthermore, the flexibility and scalability of CLM software make it a valuable tool for businesses of all sizes and industries.

Why Is CLM Software Important?

CLM software is a vital tool for organizations of all sizes and industries. It refers to the management of contracts from initiation to expiration or renewal, and everything in between. This process encompasses various stages such as drafting, negotiation, approval, execution, monitoring, and renewals. CLM software automates these processes and helps organizations manage their contracts efficiently.

One of the primary reasons why CLM software is important is because it streamlines the contract management process. Manual contract management can be time-consuming and prone to errors. With CLM software, organizations can automate tasks like contract creation, reviewal processes, digital signatures, etc., leading to increased efficiency and reduced risk of mistakes. This also saves valuable time for employees who can focus on more high-value tasks rather than getting bogged down by paperwork.

Another key benefit of using CLM software is that it centralizes all contract-related information in one place. Contracts are critical legal documents that contain crucial information related to services or products provided by a company. Such information must be easily accessible in case any disputes arise later on or when there's a need for renegotiating terms with clients or vendors. With CLM software, all contracts are stored electronically in a centralized database that allows quick access anytime.

Moreover, CLM software enhances compliance and reduces risk for an organization regarding its contractual obligations. By automating processes such as negotiations and approvals through standardized workflows, companies ensure that their contracts comply with legal regulations and internal policies consistently. The automated tracking feature also alerts users about approaching deadlines or expirations so that they can take timely action if needed.

CLM software also provides better visibility into the status of contracts throughout their lifecycle. Organizations can track metrics such as cycle times of different stages of the contract process, identify bottlenecks in the system or potential risks associated with specific types of contracts using analytics tools within the software. As a result, businesses gain actionable insights to make informed decisions regarding their contract management strategies.

Collaboration is another crucial aspect that CLM software facilitates. With multiple stakeholders involved in the contract process, it can be challenging to keep track of changes, approvals, and comments. CLM software enables real-time collaboration by allowing all parties to access the same document simultaneously and track changes made by each user. This promotes communication and transparency among different teams involved in the contract workflow.

Furthermore, using CLM software provides companies with a competitive edge in the market. It allows organizations to increase their efficiency, reduce costs related to contract management, and improve customer satisfaction through timely renewals or renegotiations of contracts. This ultimately leads to better business outcomes and helps organizations stay ahead of their competition.

In addition, CLM software also offers security features that ensure data privacy for organizations. Contract documents contain sensitive information such as financial terms, product details, etc., which need protection from unauthorized access or tampering. CLM software allows companies to set user permissions and restrictions so that only authorized personnel can access specific contracts or documents.

With the increasing trend towards remote work due to the ongoing pandemic situation globally, CLM software has become even more critical for organizations. It provides a secure platform for users to access contracts remotely from any location while maintaining data integrity and ensuring compliance with legal regulations.

CLM software is essential for businesses looking to streamline their contract management processes effectively. The benefits range from improved efficiency and compliance to enhanced collaboration and data security – all of which contribute towards better business outcomes and help organizations maintain a competitive edge in today's fast-paced business environment.

Features Provided by CLM Software

1. Automated Contract Creation and Management: CLM software allows organizations to automate the entire contract creation and management process, from drafting to execution. This feature minimizes manual labor and reduces the chances of human error.
2. Document Repository: The software provides a centralized repository for storing all contracts, making it easy to access, manage, and track them throughout their lifecycle. This eliminates the need for physical storage and reduces the risk of losing important contracts.
3. Contract Collaboration: CLM software enables multiple users to collaborate on contract authoring, editing, reviewing, and approval in real time from anywhere in the world with internet access. This feature streamlines communication among stakeholders involved in the contract process.
4. Contract Templates: The software offers pre-built templates that can be customized according to an organization’s specific needs and requirements. This ensures consistency across all contracts while saving time by not having to create each contract from scratch.
5. Clause Library: A library of pre-approved clauses can be stored in the system for quick insertion into contracts when needed. These clauses are usually vetted by legal experts, reducing potential risks associated with using non-compliant or outdated language.
6. Approval Workflow Automation: With this feature, organizations can set up automated approval workflows tailored to their business processes and hierarchy levels. This ensures that every contract goes through a standard review process before being finalized.
7. Electronic Signature Integration: CLM software may have integration capabilities with e-signature tools like DocuSign or Adobe Sign, allowing parties involved in a contract to sign digitally instead of manually signing documents physically.
8. Deadline Alerts & Reminders: To avoid missed deadlines or expiration of contracts due for renewal, CLM software sends automated alerts and reminders based on predetermined timelines set by users.
9. Audit Trail & Version Control: Every change made during the negotiation or amendment of a contract is automatically tracked and recorded in an audit trail within the system for future reference. This ensures transparency and reduces disputes over changes made to the contract.
10. Reporting & Analytics: CLM software generates reports and provides analytics on every aspect of the contract lifecycle, helping organizations gain insights into their contract performance, risks, compliance, and areas for improvement.
11. Integration with Other Systems: CLM software can integrate with other systems like CRM, ERP, or HRMS to automatically pull data for contracts related to a specific project or customer. This integration streamlines processes and eliminates the need for duplicate data entry.
12. Risk Management: Advanced CLM software offers risk management features that can identify potential risks associated with a particular contract based on various factors like terms & conditions, clauses used, pricing structure, etc. These features enable organizations to mitigate risks effectively.
13. Compliance Management: With increasing regulations across industries globally, many CLM solutions provide compliance management functionalities that help organizations ensure that all contracts are compliant with laws and regulations in their respective regions.
14. Cost Savings & ROI Analysis: By automating the entire contract process from start to finish coupled with improved efficiency and reduced manual work, CLM software helps organizations minimize costs while maximizing ROI by reducing cycle times significantly.
15. Mobile Access: Many modern CLM solutions come equipped with mobile capabilities enabling users to access their contracts on the go using smartphones or tablets – making it easier for people working remotely or traveling often.

These features provided by CLM software make managing contracts more efficient, secure, and compliant while minimizing any potential risks associated with traditional manual methods of handling contracts.

Who Can Benefit From CLM Software?

• Businesses of all sizes: CLM software can benefit businesses of any size, whether they are small startups or large corporations. The software helps streamline contract management processes and ensures compliance with legal and regulatory requirements.
• Legal teams: Legal teams are responsible for drafting, reviewing, and negotiating contracts on behalf of the company. CLM software can help them save time by automating repetitive tasks such as contract creation and approval workflows. It also allows them to have a centralized repository for all contracts, making it easier to access and manage them.
• Sales teams: Sales teams are involved in the negotiation and execution of contracts with clients. CLM software can help them stay organized by providing a centralized platform to track all client contracts and their status. The system also helps sales representatives create accurate quotes based on predefined templates, reducing errors in pricing.
• Procurement departments: Procurement departments manage supplier relationships and negotiate contracts for goods or services. CLM software can assist procurement teams by providing visibility into contract terms, pricing, discounts, and renewal dates. This information helps them make informed decisions during negotiations and avoid costly mistakes.
• Finance departments: Finance departments need access to contract data to manage payment deadlines, invoice schedules, billing terms, etc. With CLM software, finance personnel can easily access this information in real-time from a single source of truth instead of manual tracking through various systems or spreadsheets.
• Human resources (HR) teams: HR is responsible for managing employee contracts such as employment agreements, non-disclosure agreements (NDAs), confidentiality agreements (CDAs), etc. CLM software enables HR professionals to track employee documents throughout their lifecycle from creation to termination seamlessly.
• Compliance officers: Compliance officers monitor the company's adherence to laws and regulations related to business operations. They rely on accurate contract information when conducting audits or investigations involving contractual obligations with vendors or clients.
• Project managers: Project managers may require specific clauses or terms included in contracts to ensure project success. CLM software enables them to collaborate with the legal team and track any changes made to contracts during negotiations, ensuring compliance with project requirements.
• Executive management: Senior management needs visibility into contract performance, upcoming renewals, and other critical data to make informed business decisions. With CLM software, they can access real-time dashboards and reports providing insights on contract lifecycles, risks, and opportunities.
• Third-party stakeholders: Third-party stakeholders such as suppliers or vendors may want to review or monitor their contracts with the company. CLM software offers controlled access for external parties, allowing them to view relevant contract details without compromising sensitive information.
• Auditors: Auditors may require access to contract information when conducting internal or external audits of a company's financial statements. With CLM software, auditors can conveniently retrieve necessary documents without disrupting daily operations.

How Much Does CLM Software Cost?

CLM software costs can vary depending on several factors such as the features and functionality offered, the vendor, and the size of your organization. Generally, there are two types of pricing models for CLM software: subscription-based and perpetual license.

Subscription-based pricing is a popular model for CLM software where users pay a fixed monthly or annual fee to use the software. The price can range from $50 per user per month to over $1000 per user per month, depending on the complexity and scope of the software. This model allows businesses to have better control over their budget as they only pay for what they need and can easily scale up or down as required.

On the other hand, perpetual licensing involves making a one-time payment for the software with no recurring fees. This model is suitable for larger corporations that have high contract volumes and require more customization options. The cost for perpetual licenses can start from $10,000 and go up to hundreds of thousands of dollars depending on the number of users and additional services included.

Apart from these direct costs, there may also be additional expenses associated with CLM software such as installation fees, implementation costs, training fees, ongoing maintenance charges, etc. These costs can significantly add up to your overall expenditure.

Another important factor that impacts the cost of CLM software is its deployment method - on-premise or cloud-based. On-premise deployment involves purchasing hardware infrastructure along with installing and maintaining the software on company servers which can be expensive upfront but may prove cost-effective in the long run for organizations with large contract volumes. Cloud-based deployment eliminates significant upfront costs but requires an ongoing subscription fee which may increase over time based on usage.

Moreover, the complexity and customization requirements of your organization can also impact the cost of CLM software. If you have unique business processes or require extensive integrations with other systems, the vendor may charge additional fees for customization and implementation services.

It's important to note that some vendors may offer a free trial period for their CLM software allowing businesses to test out the features and functionalities before committing to a paid plan. This can help determine whether the software meets your needs and budget.

The cost of CLM software can vary significantly depending on various factors such as pricing model, deployment method, customization requirements, and additional expenses. It's essential for organizations to carefully consider their needs and budget before selecting a CLM solution that best fits their requirements.

Risks To Consider With CLM Software

CLM software is a powerful tool that helps organizations streamline and automate their contract processes. It offers various benefits such as improved efficiency, increased accuracy, and better compliance. However, the use of CLM software also comes with certain risks that organizations need to be aware of in order to mitigate them effectively. Some of the risks associated with contract lifecycle management software are:

• Implementation Risks: Implementing a CLM system involves a significant investment in terms of time and resources. There is also a risk that the implementation process may not go as planned and may cause disruption or delays in business operations.
• Integration Risks: A CLM system needs to integrate seamlessly with other existing systems such as CRM, ERP, and document management systems to ensure smooth data exchange. Any challenges or delays in integration can result in data inconsistencies or errors.
• Technical Risks: Like any other software, CLM systems are prone to technical issues such as bugs, crashes, and downtime. These issues can impact the organization's ability to manage contracts efficiently and accurately.
• Data Security Risks: With sensitive information being stored on CLM systems, there is always a risk of data breaches or unauthorized access. This can lead to financial losses, legal consequences, and damage to an organization's reputation.
• User Adoption Risks: The success of any software depends on its user adoption rate. If users do not understand how to use the CLM system or are resistant to change, it can lead to underutilization or even failure of the system.
• Compliance Risks: Compliance is a critical aspect of contract management for organizations operating in highly regulated industries such as healthcare and finance. Using a CLM system without proper compliance controls can result in violations and penalties.
• Contract Management Process Risks: Advanced technology does not guarantee flawless processes if they are not designed adequately. Organizations must ensure that their existing contract management processes align with the CLM system's capabilities to avoid inefficiencies or errors.
• Vendor Risks: Selecting a reliable and reputable vendor for the CLM software is crucial. Choosing an inexperienced or financially unstable vendor can pose a significant risk to the organization's operations, data security, and customer relationships.
• Training Risks: Proper training is essential for users to understand how to use the CLM system effectively. Insufficient or inadequate training can lead to user errors, lowered productivity, and poor contract management.
• Maintenance and Upkeep Risks: A CLM system needs regular updates and maintenance to function efficiently over time. Organizations need to have proper maintenance plans in place to avoid any disruptions or unexpected costs that may arise due to outdated software.

While contract lifecycle management software offers numerous benefits, organizations must also be aware of its potential risks. Organizations must conduct thorough research, select a reputable vendor, design efficient processes, provide adequate training, and have contingency plans in place when implementing a CLM system. By proactively addressing these risks, organizations can maximize the benefits of using CLM software while minimizing any potential negative impact on their operations.

What Software Does CLM Software Integrate With?

CLM software can integrate with a variety of other tools, including:

1. Enterprise resource planning (ERP) software: CLM solutions can connect with ERP systems to manage financial data and ensure contract compliance.
2. Customer relationship management (CRM) software: Integrating CLM with CRM platforms allows for better customer insights and streamlined communication throughout the contract lifecycle.
3. Electronic signature software: By integrating electronic signature tools, contracts can be signed and executed digitally, saving time and reducing the risk of errors.
4. Document management software: CLM software can integrate with document management systems to store and organize important contract documents in a centralized location.
5. Procurement software: Integration with procurement platforms allows for more efficient purchasing processes by automating sourcing, supplier selection, and contract creation.
6. Project management software: Combining CLM with project management tools allows for better tracking of contractual obligations within project timelines.
7. Legal practice management software: For law firms or legal departments, integrating CLM with legal practice management systems helps streamline contract creation and review processes.
8. Compliance monitoring software: Integration with compliance monitoring tools ensures that contracts are adhering to regulatory requirements throughout their lifespan.

Integration between CLM and various other types of software allows for a more comprehensive approach to managing contracts across different departments or functions within an organization.

Questions To Ask When Considering CLM Software

1. What is the purpose of CLM software? It is important to understand the purpose and goals of implementing CLM software in your organization. This will help you determine if it aligns with your business needs and objectives.
2. What features does the CLM software offer? Each CLM software may offer different features, so it's essential to identify which features are most important for your organization. Some common features include contract creation, approval workflows, electronic signature capabilities, contract tracking and monitoring, compliance management, and reporting.
3. Is the software customizable? Some organizations may have unique requirements that require customization of the CLM software. It's crucial to understand if the software can be tailored to meet specific needs or if it is a one-size-fits-all solution.
4. How user-friendly is the software? The ease of use of a CLM system is essential for successful adoption among employees within an organization. It would be best to consider how user-friendly the interface is and whether training would be required for employees to use it effectively.
5. Does it integrate with other systems or tools? Many organizations use multiple systems for various processes such as CRM, ERP, or project management tools. It's essential to check if the CLM software can integrate with these existing systems to streamline processes further.
6. How secure is data stored in the system? As contracts often contain sensitive information like financial terms and legal clauses, security should be a top priority when selecting a CLM tool. Ensure that data encryption measures are in place, access controls are established, and regular backups are performed.
7. Is there technical support available? Technical issues can arise at any time while using any technology solution. Therefore, it's important to inquire about the availability of technical support from the vendor and their response time in case of any problems.
8. What is the pricing structure? Understanding the cost involved in implementing CLM software is vital for budgeting purposes. Some vendors may offer a one-time fee, while others may have ongoing subscription fees. It's crucial to inquire about any hidden costs such as customization fees or additional charges for technical support.
9. Can it scale with business growth? As your business grows, your contract management needs may also increase. Inquire if the CLM software can accommodate this growth and if there are any limitations or extra costs associated with scaling up.
10. How long will it take to implement? Implementing new technology often takes time and disruption of existing processes. It's crucial to understand how long it will take to integrate the CLM software into your organization and prepare accordingly.
11. Is training and onboarding provided? Training and onboarding employees on how to use the CLM system effectively are critical for its successful adoption within an organization. Inquire if the vendor provides training resources or offers onboarding assistance during implementation.
12. How does it handle contract renewal? Contract renewals are common, so understanding how the system handles these processes is important. Does it provide alerts or notifications when contracts are due for renewal? Can it generate reports on past renewals?
13. Does it have mobile accessibility? In today’s fast-paced world, having access to important information from anywhere at any time is crucial. Therefore, checking if the CLM software has a mobile app or is accessible through a web browser can be beneficial for remote teams or employees who frequently travel.
14. Does it offer analytics or reporting capabilities? Analyzing contract data can provide valuable insights into the performance of contracts, vendor relationships, and any potential risks. It's essential to inquire if the CLM software offers analytics or reporting capabilities to track key metrics and improve decision-making processes.
15. How does it handle version control? Contracts often go through multiple revisions and updates throughout their lifecycle, so understanding how the system handles version control is critical for maintaining accuracy and avoiding confusion.
16. What type of customer support is provided? It's important to know what type of customer support is offered by the vendor in case assistance is needed during or after implementation. Inquire about their customer service channels (phone, email, live chat) and their availability (24/7, business hours).
17. Can it integrate with e-signature platforms? Electronic signatures have become increasingly popular for facilitating remote contract signing. If your organization uses an e-signature platform, it's essential to check if the CLM software integrates with it seamlessly.
18. Does it have a trial period or demo available? Finally, before committing to purchasing CLM software, ask if there is a trial period or demo available that you can use to test its functionalities and ensure that it meets your organization’s needs.