Contract Lifecycle Management Software

What Is Contract Lifecycle Management Software?

Contract management software organizes the complex and detailed contractual negotiation process between buyers and suppliers. These solutions typically manage the entire lifecycle of contracts, from initial request for proposal (RFP) to eventual re-negotiations. Gaining full control of the contractual process allows users to not only reduce supplier risk, but also gain increased insight into contracts - creating strategic negotiation opportunities and improved cash flow.

These software systems range from applications that exclusively manage vendor contracts to robust suites that also include sourcing, bid management and procurement functionality. Many of these solutions often integrate with other supply chain, accounting and enterprise resourcing planning (ERP) systems.

Contract Lifecycle Management Features & Functionality

By automating and simplifying contract acquisition and maintenance, users can ensure consistent contractual language, regularly maintained buy-cycles and sound cash management. Users can also take advantage of notification systems that help identify opportunities to improve contract alignment. The result is a smoother acquisition process, higher supplier retention and reduced contractual risk that can lead to better cash management practices.

Specific features of contract lifecycle management solutions include the following:

Evaluating Supply Chain Planning & Optimization Software

Analyst firms have consistently found that streamlined contract management is a best practice of companies looking to reduce supplier risk. Regulation of the contract lifecycle allows users to gain increased visibility and reduce this risk, as well as discover contract improvement opportunities.

When evaluating contract management systems, these questions can help determine if the solution fits your needs:

• Do you need an on-premise or cloud-based, software-as-a-service (SaaS) solution?
• Do you negotiate contracts internationally? Many regions and governing bodies have unique regulations for contracts and proposals. Your contract management solution needs to comply accordingly.
• In addition to contract management, do you need this system to include procurement and sourcing functionality? What other features does this system require to fit your supply chain needs?
• Will the system need to integrate with existing solutions? Is integration with accounting, ERP or other supply chain management (SCM) software necessary?