Contracts are more than just legal paperwork- they’re a critical tool for managing risk, controlling costs, and driving performance. Yet many organisations still struggle with fragmented, manual contract processes that result in missed renewals, compliance issues, and lost value.
Contract Lifecycle Management (CLM) is the solution. But what exactly is CLM, and why should procurement teams care?
Defining contract lifecycle management
CLM is the end-to-end process of managing contracts through every stage of their lifecycle, from initial request and drafting, through negotiation, execution, monitoring, renewal, and eventual close-out.
An effective CLM process ensures that contracts are not only well-written but well-managed: aligned to commercial goals, regulatory requirements, and supplier performance targets.
The key stages of CLM
- Request and Drafting
Contracts usually begin with a request or requirement from a business unit. At this stage, procurement works with legal and stakeholders to draft terms that protect the organisation’s interests while aligning with business objectives.
- Negotiation and Approval
This stage involves back-and-forth between the organisation and supplier to finalise the terms, SLAs, KPIs, and pricing for example. Clear roles and digital workflows can speed up approval times and reduce risk. As can involving the right people early in the process.
- Execution
Once approved, contracts are signed – increasingly using e-signature tools for speed and auditability. Proper execution ensures both parties are legally bound to the agreed terms.
- Ongoing Management and Monitoring
This is where many organisations fall short. Contracts are filed away and forgotten, leading to missed obligations or unclaimed entitlements. CLM systems allow procurement teams to monitor key milestones, renewals, compliance metrics, and performance indicators.
- Renewal or Close-Out
Contracts should be reviewed ahead of expiry to assess whether they still deliver value. If not, the contract can be renegotiated or terminated. A structured review process prevents accidental rollovers or lapsed agreements.
Why CLM matters to procurement
Procurement professionals are uniquely positioned to lead the CLM agenda, because so many of their decisions are governed by contracts.
With strong CLM, procurement can:
- Reduce risk by ensuring compliance with terms and regulations
- Improve supplier performance through clear KPIs and tracking
- Avoid costly auto-renewals or overpayments
- Unlock hidden value through rebates, incentives or early termination clauses
- Save time through automated workflows and alerts
CLM tools: digitisation is key
Modern CLM platforms provide contract repositories, version control, automated alerts, and dashboards for visibility across all agreements. For large or complex organisations, digital CLM is no longer a nice-to-have: it’s essential for good governance and strategic decision making.
How Accelerate can help with Contract Lifecycle Management
At Accelerate, our experienced procurement consultants support organisations in designing and implementing CLM frameworks that bring control, visibility, and commercial value to every contract. Whether you’re starting from scratch or want to optimise your current approach, our team can guide you every step of the way.
If you’re ready to take control of your contracts or just want to talk in more detail about the digital CLM platforms that are out there: we’re ready to talk.