7 Industries that Benefit from Contract Management Software

Implementing contract lifecycle management software is a best practice for organizations of virtually all sizes and industries. Some of the advantages of contract management software include:

• Securely storing your contract documents and related files in one, centralized contract repository

• Automated alerts and reminders for critical contract milestones

• Reporting tools for in-depth insight into the health of your contract portfolio

While nearly every business can become more productive and efficient by implementing CLM software, certain fields face particular challenges that make contract management software a smart choice. Here are seven industries that can benefit most from adopting contract management software.

1. Technology

Technology companies often manage a large number of corporate contracts and other critical agreements that need to be tracked throughout their lifecycle, especially during phases of rapid growth and expansion. In addition, tech companies have access to a great deal of sensitive information: both personally identifying information about their customers and intellectual property such as patents and trade secrets that could be devastating to the business if made public.

Contract management software for technology companies helps you protect this confidential information and successfully fulfill your agreements with third parties. Some of the benefits of contract management software for tech companies include:

• Vendor and client contract management

• Employee agreement management

• Task and email alerts

• Activity audits and reporting

• Monitoring contract expirations

2. Healthcare

Healthcare organizations need to manage documents such as employment contracts, agreements with vendors and suppliers, lease agreements, and many more.

In addition, these organizations deal with a number of strict industry regulations, like the Stark law and the Anti-Kickback Statute, which come with hefty financial penalties when violated. Previously, we've discussed how CLM software can help organizations reduce the risk of compliance violations.  

Contract management software helps healthcare companies with things like:

• Vendor contract management

• Payer and provider contracts

• Contract security

• Task and email alerts

• Compliance tracking

3. Biotechnology

Biotechnology companies lie at the intersection of healthcare and technology, so it only makes sense that biotech firms are among those that stand to gain the most from contract management software. As a high-risk industry, missed deadlines or lack of compliance in biotech could mean a botched product launch or even spell the end of the business.

CLM software for biotech companies helps manage documents such as:

• Clinical trial contracts

• R&D agreements

• Sourcing and funding agreements

• Confidential disclosure forms

4. Manufacturing

Manufacturing companies may source components from dozens or hundreds of suppliers around the world, making it a struggle to manage all of your contracts and commitments. You also have to be sure you're staying on top of all obligations to customers, suppliers, and distributors, which can be challenging without the right tools.

Some of the benefits of contract management software for manufacturing companies include:

• Vendor and client contract management

• Obligations management

• Notifications and email alerts

• Compliance tracking

• Flexible reporting options

Want to learn how one manufacturing company used ContractWorks to keep track of their growing contract portfolio? Check out our LT Apparel Group case study.

5. Consumer goods

Like manufacturing companies, consumer goods companies may have hundreds or thousands of contracts active with vendors, suppliers, and customers. Finding a way to manage this complexity and meet deadlines and milestones is essential to avoid falling behind in the competitive consumer goods space.

Contract management software for consumer goods companies help you stay on top of all your documents and responsibilities, and tools like electronic signature can ease the burden of having to get so many contracts signed related to marketing agreements, intellectual property licenses, and more.

6. Construction

Missed deadlines and blown budgets are, unfortunately, all too common for construction companies. According to a study by McKinsey & Company, the average cost and time overruns for a construction project are 70 and 61 percent, respectively.

Part of the problem is due to contract complexity: commercial construction companies often have hundreds of contracts active simultaneously, a situation that’s practically impossible to oversee manually. Contract management software for construction companies dramatically improves visibility and helps lessen the chance of going over your deadlines and budget.

7. Media

Media and entertainment companies need to manage a large number of contracts in order to keep production moving forward. Contracts may be issued for a particular work (e.g. a publishing deal for a single book) or for a particular talent (e.g. a musician’s recording contract), or on a more long-term and ongoing basis. What’s more, new distribution channels and markets make the contract management process increasingly complicated.

Contract management software for media companies ensures that you can always meet deadlines, get contracts signed more quickly, and fulfill your obligations as a company.

Conclusion

As we’ve discussed above, contract management software can benefit companies in a wide range of fields and industries, from technology and healthcare to manufacturing and construction. Contact us today to discuss your specific contract management needs priorities.