CLM Solution Overview: Importance, Key Features & Benefits
                     CLM Solution Overview: Importance, Key Features & 
Benefits
CLM Solution Explained: Why It Matters, Features & 
Benefits
Successful businesses don’t just focus on sealing deals they handle 
every contract with accuracy and intent. Despite this, many organizations 
continue to depend on old-fashioned, manual processes for contract 
management.
Strong vendor relationships drive business success. Using a CLM solution 
speeds up approvals, minimizes compliance errors, and cuts legal and 
admin costs.
Adopting modern CLM solution empowers teams to make faster, 
data-driven decisions.
A study by Thomson Reuters revealed that 42% of legal professionals 
surveyed in the Future of Professionals Report want to spend more of their 
valuable time on expertise-driven legal work in the next five years.
Quick Read
Summary generated by AI, reviewed for accuracy.
If your current contract workflows are causing delays or errors, now is the 
perfect time to explore a best CLM solution. This blog highlights the key 
features and essentials that any effective platform should offer. By 
understanding these aspects, users can choose a solution that truly 
streamlines your contract management and boosts efficiency.
Why CLM Solution is Important for Business
In every organization, contracts form the foundation of business 
relationships from vendors and clients to employees and service 
providers. Managing these contracts manually can become increasingly 
difficult as a company grows.
1. The Growing Volume of Contracts
According to a PwC study, the average Fortune 1000 company 
manages anywhere from 20,000 to 40,000 active contracts.
This sheer volume makes manual handling difficult and time-
consuming. As a company expands, keeping track of all agreements, 
terms, and obligations becomes a serious operational challenge.
2. The Impact of Delays on Business Operations
Contract-related delays often slow down key business processes 
such as payments, project launches, and vendor onboarding.
These delays can affect timelines and create challenges across 
departments.
When contracts move through defined stages in an organized 
manner, it helps businesses operate more efficiently and maintain 
consistent progress in their operations.
3. Need for Centralized Access to Contract Information
In many organizations, contracts are scattered across multiple 
storage
systems shared drives, emails, or physical files. This makes it 
difficult for teams to find the right document when needed.
A centralized CLM solution helps overcome this challenge by 
storing all contracts in a single contract repository.
This improves accessibility, reduces confusion, and helps 
teams make
informed decisions quickly.
4. Importance of Tracking Key Dates and Milestones
Every contract carries important dates such as renewals, 
expirations, and delivery milestones.
Missing these dates can lead to financial loss, service 
interruptions, or even legal complications.
Having a CLM solution that tracks and alerts teams about upcoming 
events helps businesses stay proactive and manage their 
commitments responsibly.
5. Managing Risk Through Better Contracts
Contracts define the legal and financial responsibilities of all parties 
involved. When these are not properly maintained, businesses risk 
disputes, non-
compliance, or unexpected liabilities.
A structured CLM solution helps manage such contracts risks by 
keeping
every document organized, updated, and accessible for review when 
needed. It creates a foundation of accountability and control, which 
is essential for
long-term business stability.
Difference Between Traditional and CLM Solution
Contract management has evolved significantly over the years, moving 
from manual, paper-based processes to modern digital solutions. 
Comparing traditional contract management with a CLM solution highlights 
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entire contract process. Management
Contract Creation Manual drafting in AI-powered contract 
Word or Excel; often drafting with pre-
inconsistent templates approved templates and 
clause libraries
Approval Process Emails or physical Multilevel digital 
signatures; can take days approvals with routing 
to relevant stakeholders
Collaboration Multiple versions shared Real-time collaboration 
via email, high chance of with version control and 
confusion editing history
Tracking & Monitoring Limited visibility; Automatic notifications, 
tracking is manual and tracking, and reminders 
prone to delays for key dates
Compliance & Risk Hard to enforce Built-in compliance 
company- wide checks, standardized 
compliance; risk of templates, and audit 
errors trails
How Does a CLM Solution Work?
A CLM solution works by organizing the entire contract process into clear, 
actionable steps. Here is a step-by-step explanation.
Step 1: Contract Request
Any team member can raise a request for a new contract through the 
CLM software solutions. The request is routed to the legal team with 
relevant details such as type of agreement, parties involved, and key 
contract clauses.
Step 2: Contract Drafting
Using pre-approved templates and a clause library, the legal team creates 
the
initial contract draft process and can share it directly via Outlook for 
review. AI tools can suggest standard clauses based on the contract type, 
helping reduce the time spent on drafting and communication.
Step 3: Internal Review
The contract is shared with internal stakeholders, such as finance, 
operations, or sales, for feedback. The CLM solution tracks comments 
and changes, ensuring all inputs are recorded.
Step 4: Negotiation with Counterparties
The contract is sent to external parties for review as part of a contract 
negotiation strategy. All changes and suggestions are tracked digitally, 
allowing users to
compare versions, review redlines, and finalize agreements efficiently.
Step 5: Approvals
The contract goes through a multilevel approval process. Each approver 
is notified automatically, and their approvals are stored in the system for 
audit purposes.
Step 6: Execution
Electronic signatures are applied once all parties approve the document.
The executed contract is securely stored in the system for easy 
access. This ensures compliance, transparency, and a clear audit 
trail for future reference.
Step 7: Post-Execution Management
The CLM software solutions monitors key dates, renewal timelines, 
and obligations.
Alerts and reminders ensure that deadlines are met, and reporting 
tools provide insight into contract performance.
Step 8: Amendments and Updates
Any amendments are handled within the system, maintaining a complete 
version history. Users can compare changes and ensure updated terms 
are communicated clearly.
Key Features of a CLM Solution
A modern CLM solution comes with a wide range of features designed to 
make contract management more organized and effective. Key features 
include. Here are some reliable feature to consider.
1. AI-Powered System
AI-powered CLM solution assist during contract workflow. The AI can 
suggest clauses that match the type of contract being prepared. It can 
also detect unusual terms, missing information, or potential risks, helping 
prevent problems before they occur.
The AI can summarize long contracts into simple points, making it easier to 
understand the main details. It can also offer alternative clauses, allow 
better choices when draft agreements.
2. Easy Contract Creation
Contracts can be created easily using ready-made templates and a 
clause library. This means there is no need to start from a blank 
document every time.
Templates are designed for different types of agreements, so selecting 
the right template helps in creating contracts that are correct from 
the beginning.
The process requires fewer steps, making contract creation simpler and 
faster for the legal and business teams.
3. Clause Library
A clause library is a collection of standard contract terms that can be 
used in many contracts. It ensures that all contracts follow the 
company’s rules and policies.
The library allows users to pick the right clauses quickly without thinking 
about the wording every time.
It also reduces mistakes and ensures that every contract includes 
important clauses.
4. Integrations
CLM 365 integrates with tools like SharePoint, MS Teams, Outlook, Power 
BI, and MS Copilot. Contracts can be shared via Outlook, stored in 
SharePoint, discussed in Teams, or analysed in Power BI.
MS Copilot can suggest clauses, summarize contracts, and track 
obligations. These integrations make contract management faster and 
more organized.
They also help teams collaborate better and keep all contract 
information in one place.
Recommended Read: Best SharePoint Contract Management Software
5. Multilevel Contract Approvals
An enterprise-level CLM solution allows contracts to be sent to multiple 
approvers based on company rules. Each approval is recorded, making it 
easy to track who has approved and when.
This easy contract approval process reduces delays, keeps the process 
organized, and ensures every contract follows the correct approval path.
It also provides a clear audit trail for accountability and compliance. 
Additionally, it helps teams make faster decisions by showing pending 
approvals immediately.
6. Contract Routing
A CLM solution can automatically send contracts to the right people at the 
right time. This feature makes sure that contracts do not get stuck with 
the wrong person.
The automated routing saves time and avoids mistakes caused by manual 
sending. It ensures that contracts move quickly from creation to approval 
and then to signing.
7. Draft Comparison
CLM 365 allows different versions of a contract to be compared side by 
side. Teams can see what has been added, removed, or changed, making 
negotiations easier to follow.
This helps avoid mistakes, keeps the review process clear, and ensures all 
changes are tracked accurately.
It provides a reliable record of all edits for future reference and can be 
combined with analysis to identify contracts risks, obligations, or unusual 
terms.
8. Contract Redlining
Contracts can be edited while keeping a clear record of all changes. 
Redlining highlights the edits made in each version, so everyone can see 
what was added or removed.
This feature helps teams work together without losing track of 
changes. It also makes negotiations easier because all suggestions 
and edits are visible in one place.
Redlining the contract ensures that every modification is tracked and 
nothing is overlooked.
9. Contract Amendment
Contracts can be updated or amended after they are signed without 
losing the original version. Each change is recorded, and the history of 
the contract is saved.
This makes it easy to review past versions and understand how the 
contract has changed over time. The contract amendment feature 
ensures that all updates are documented clearly.
It also helps maintain contract accuracy by linking every amendment to 
its original agreement.
10. Electronic Signature
Electronic signatures remove the need to print, sign, and scan contracts. 
Contracts can be signed online, which saves time and makes the process 
faster. Electronic signatures are legally valid and accepted in most 
countries.
This feature helps complete the contract process quickly, even when 
people are in different locations.
It also provides a secure and trackable way to verify who signed the 
contract and when.
11. Version Control
A CLM solution keeps every version of a contract neatly organized in 
one place. Teams can view earlier drafts, track updates, and review the 
complete contract.
This version control feature makes managing multiple revisions simple 
and reliable. It keeps the workflow clear, prevents data loss, and 
enhances visibility by showing who made each update and when.
With version control, teams can always work on the latest 
version with full confidence and accuracy.
12. Advanced Reporting & Analytics
A CLM solution provides reports and insights about contracts. It can show 
how long approvals are taking, which contracts are pending, and whether 
obligations are being met.
The contract analytics also highlight the performance of contracts, 
helping teams make better decisions.
These insights provide a clear view of all contracts in the system and 
help improve the contract management process.
Benefits of Using a CLM Solution
A CLM solution offers measurable advantages that go beyond just 
managing contracts. Below are some of the key benefits that 
businesses experience when adopting a CLM platform.
1) Accelerate Contract Approvals
With a centralized digital platform, contract creation, negotiation, and 
approvals happen in one seamless flow.
Teams no longer wait for manual reviews or scattered email exchanges. A 
good CLM solution provider streamlines the process and ensures contracts 
move from draft to execution faster, helping your business close deals and 
onboard partners more quickly.
2) Boost Productivity
Modern contract lifecycle management leverage AI to simplify and 
optimize every stage of the contract lifecycle.
AI can quickly analyse large volumes of contracts, identify key 
clauses, and flag potential risks saving teams valuable time and effort.
Instead of spending hours on manual reviews, your team can focus on 
strategic decision-making and higher-value work, leading to smarter, 
faster outcomes.
3) Enhance Efficiency Through Intelligent Automation
According to a survey by ALM and Bloomberg Law, over 40% of corporate 
counsel spend at least 50% of their daily workload on tasks related to 
contracts.
This shows the need for automated contract workflows ensure that every 
contract follows a consistent process, reducing human error and 
improving overall efficiency.
As a result, your organization enjoys accelerated turnaround times, 
flawless accuracy, and smarter resource utilization driving higher 
efficiency, productivity, and overall business growth.
4) Ensure Strong Compliance
An enterprise-level CLM solution helps you manage contract compliance 
effortlessly by aligning every contract with predefined templates, approval 
workflows, and policy standards.
It ensures full adherence to regulations, keeps teams audit-ready, and 
minimizes compliance risks building lasting trust with stakeholders and 
partners.
With centralized visibility, your organization can track, monitor, 
and enforce compliance at every stage of the contract lifecycle.
5) Protect Data with Enterprise-Grade Security
CLM 365’s CLM solution is built with ISO and SOC 2 certifications and is 
Microsoft- certified, ensuring top-tier data protection and privacy.
Every contract and document is stored in a secure cloud environment 
with role- based access control, encryption, and continuous 
monitoring.
With robust contract management security, businesses can confidently 
manage sensitive agreements, knowing their data is protected and 
compliant with global security standards.
6) Gain Greater Visibility
A centralized dashboard gives stakeholders real-time visibility into 
contract status, obligations, and performance metrics.
With advanced search and reporting features, decision-makers can 
instantly locate any document, track renewals, and ensure milestones 
are met.
The Corporate Legal Operations Consortium found that 68% of contract
professionals search for a finalized contract at least once a week, a 
practice that enhances transparency, strengthens control over the contract 
portfolio, and improves accountability across the organization.
7) Strengthen Vendor Relationships
A CLM solutions ensures clear terms, timely renewals, and transparent 
performance tracking.
By centralizing all vendor contracts in one platform, businesses enhance 
collaboration, improve communication, and resolve issues quickly 
fostering stronger, long-term partnerships built on trust and reliability.
With greater visibility into vendor performance, organizations can make 
data-driven decisions that optimize value and strengthen supply chain 
efficiency.
Best Practices to Implement a CLM Solution
Implementing a CLM solution can significantly enhance the efficiency, 
accuracy, and visibility of your contract processes. The following best 
practices provide a comprehensive guide to help you get the most out of 
your CLM implementation.
1. Assess Current Processes
Before introducing a CLM solution, it’s essential to understand how your 
existing workflows operate. A clear picture of current contract lifecycle 
management processes helps identify opportunities for improvement and 
ensures the new system aligns with organizational needs.
 Map your end-to-end contract process across departments.
 Identify repetitive tasks and areas with manual effort.
 Gather input from stakeholders to understand current 
challenges and priorities.
2. Define Objectives
Setting clear objectives ensures your CLM solution is purpose driven. 
Knowing what you want to achieve helps prioritize features, measure 
success, and align the system with broader business goals.
 Determine key outcomes like faster approvals or enhanced 
compliance.
 Establish measurable goals to track CLM effectiveness.
 Align objectives with overall organizational strategy and team 
expectations.
3. Select the Right CLM Tool
Choosing a CLM solution that fits your organization is crucial for seamless 
adoption. The right tool should cater to your workflow requirements and 
integrate smoothly with existing systems.
 Evaluate software features to match your contract needs.
 Check for compatibility with current tools.
 Consider scalability to support future growth and evolving 
requirements.
4. Train Teams
Successful CLM adoption depends on how well your teams understand 
and use the system. Utilizing training materials ensures everyone can 
leverage the platform efficiently and confidently.
 Conduct role-based training for legal, sales, finance, and operations 
teams.
 Provide hands-on sessions to familiarize users with system 
functionalities.
 Offer ongoing support and resources for continuous learning.
5. Standardize Templates
Consistent templates create a streamlined and professional contract 
process. By 2025, 84% of organizations anticipate implementing 
globally consistent contract templates. This standardization not only 
saves time but also ensures uniformity in terms, language, and 
branding across all agreements.
 Develop standardized templates for common contract types.
 Include pre-approved clauses to maintain compliance and 
consistency.
 Update templates periodically to reflect current policies and 
regulations.
6. Monitor and Adjust
Ongoing observation helps ensure your CLM solution continues to deliver 
value. Regular contract monitoring allows you to refine processes and 
adapt the system to evolving organizational needs.
 Review system usage patterns and identify high-activity areas.
 Gather feedback from teams to optimize workflow efficiency.
 Make iterative adjustments to improve contract lifecycle 
management.
7. Track Key Metrics
Tracking performance metrics provides insights into the effectiveness of 
your CLM software solutions. Metrics help measure success, highlight 
areas for improvement, and guide strategic decision-making.
 Measure contract completion times and approval durations.
 Track compliance rates and adherence to organizational standards.
 Analyse workflow performance to identify trends and opportunities.
The Future of Contract Management with AI
Contract management is rapidly evolving from a manual, document-
centric process to a strategic, data-driven function. Here’s how AI is 
shaping the future of contract management.
 Predictive Risk Analysis: AI analyses historical contract data to 
identify patterns and potential risks, allowing organizations 
to proactively mitigate issues.
 Automated Contract Summaries: AI in CLM 365 can quickly analyse 
contracts and generate concise summaries, highlighting key terms, 
deadlines, and obligations. This saves time and ensures critical 
information is always visible immediately.
 Alternative Clause Suggestions: AI-powered recommendations in 
CLM software solution help users identify and insert important 
contracts clauses based on previous contracts, compliance 
requirements, and organizational standards, improving contract 
quality and consistency.
 Obligation Management: CLM solution uses AI to track contractual 
obligations automatically, sending alerts and reminders for 
milestones, renewals, and compliance deadlines. This ensures 
nothing is overlooked and enhances operational efficiency.
 AI Contract Agent: CLM solution AI agent acts as a smart assistant, 
answering contract-related queries, guiding teams through 
workflows, and supporting faster decision-making throughout the 
contract lifecycle.
 Risk and Compliance Insights: AI analyses contracts to detect 
potential risks, deviations, or non-compliant clauses, helping 
organizations maintain regulatory adherence and reduce 
exposure.
Conclusion
Implementing a robust contract solution is no longer optional it’s essential 
for organizations seeking efficiency, compliance, and strategic control over 
their contracts. CLM 365 empowers your teams with AI-driven contract 
summaries, intelligent clause suggestions, obligation tracking, and a smart 
AI agent, transforming the way you manage agreements from start to 
finish.
Take the next step in modernizing your contract management process. Get 
a 14-day free trial of CLM 365 no credit card required and experience every 
feature designed to streamline your contract workflows.