SAP CLM (Contract Lifecycle Management)
Definition or Meaning- What is SAP CLM (Contract Lifecycle Management)?
Full form or SAP CLM stands for (Contract Lifecycle Management), every organization success depends upon productivity. Procuring best opportunities for increased productivity with cost saving can be achieved by SAP sourcing Contract Lifecycle Management. A fortune company has typically thousands of active contracts running with different terms and conditions. A contract manager software application assists your business processes ensuring contracts compliance, capturing valuable data and proffer in long term significant and sustainable benefits.
A basic Contract Lifecycle Management process includes various steps starting from drafting of the Contract, Negotiation, Storing and Repository, Compliance and administration, renewal and optimization of contract. An organization can increase financial and operational performance reducing risks by proactively managing creation, execution and analysis of contracts. With SAP CLM application organization can visualize, standardized and can streamline contract process.
Creating saving and good governance is one of the basic benefits of CLM. Implementing robust CLM can assist in better discipline, incremental savings and sustainable results can be achieved in the long term. For a successful company, effective Contract Lifecycle Management application is a must. The application not only automates the contract process however it also proffers an organization to enter into thousands of unique business relationships.
Features of Dynamic, Robust Contract Lifecycle Management Application
- CLM enables you to keep all contracts in a central visible place and save you from potential risks.
- You can access any contract and track any important data so you don't miss any leads.
- You can accelerate and concentrate on creating a new contract in a fast but controlled fashion.
- It empowers your business using self contract services and you can draft complex contracts easily.
- Increasing pace in your workforce filling out fields quickly generating a contract and save your time.
- Analyze contracts compliance, risks and cycle time
- Reduces risk offering complete visibility and insights into all contract details.
Well Define Benefits of Contract Lifecycle Management Application
- Identified and managed risks
- Control on policies enforced
- Reduced off contracts spending
- Reduced legal fees and overcharge
- Forecasted results
- Reduced risk improving
- Fully repository and searchable
- Fully automated with reduced administration.
- Helps organization in speed deal closing.
- Secure, Reliable and controlled.
- Ability to supports all kinds of contracts.
Not having a well-defined Contract Lifecycle Management application process in place can lead to some of the negative effects:
- Inability to track contract compliance,
- Impacting the ability to track due to incorrect use of terms and conditions.
- The increasing cost of ownership.
- Services not aligned with company objectives.
- Lack of necessary internal review.
- Leading to excessive inefficiencies.
- Tracking global contracts is not easy
In large organizations, revenue is lost each day in the contracting process and CLM can assist in saving the unnecessary cost and time incurred on a daily basis. The contract is the backbone of your company should always be taken care with utmost care. SAP CLM (Contract Lifecycle Management) is not a passing trend but an essential part of growing your business.