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Contract Lifecycle

Management [CLM]
Bridging procurement
and supply
management

Why is CLM gaining focus


among enterprises?
To manage the huge volume of
procurement contracts
13,000
procurement contracts In large
enterprises

8,200

procurement contracts in medium


enterprises

4,000

procurement contracts in small


enterprises

To keep an account of the contracts and to comply


with legal protocols

60%

73%

12% to 15%

of corporate litigations
are related to contract
disputes

indicated 'price changes


as the most common
contract dispute

of contracts lost or
unaccounted for in
organizations

[Source: Aberdeen Group, November 2011]

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Where do enterprises seek


improvement?
Poor
compliance
37% - Improve

supplier compliance
to contracts

Missed cost
savings
66% - Better
control of
enterprise spend

Increase in the
contract cycle
time
34% - Visibility
into supplier
performance on
contracts

Lack of
visibility
44% - Visibility
into contractual
agreements

Error-prone contracts
40% - Reduce supply and
[Source: Aberdeen Group, November 2011]

supplier risk

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Why do best-in-class
organizations use CLM
solutions?

To identify
opportuniti
es for
savings

To prevent
inefficienci
es

To improve

Process
standardization
Contract
compliance
Transparency in
procurement

To
reduce
approva
l times

To realize
more
negotiated
savings

To
understand
existing
contractual
obligations

To bring more
spend volume
under
management with
spend analysis
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What are the benefits of


CLM Solutions?
Effective centralized contract management
combined with CLM solutions help organizations with
Savings and
efficiencies

Impact on the
bottom line

79%

1.38x

of spend under
management

more likely to avoid


penalties

17%

average contract savings realized

6X
reduction in cycle time

71%
of e-signature
users have seen
efficiency

[Source: Aberdeen Group, November 2011]

2X

more likely to track rebates

77%
more likely to review
achievement of
milestones/status
of contracts

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What are the benefits of


CLM Solutions?
Effective centralized contract management
combined with CLM solutions help organizations with
Visibility and
performance

Knowledge
management

80%

30%

claim more visibility into


compliance to negotiated
terms and conditions

more likely to use contract


templates in CLM systems

63%
claim improved
compliance to service
level agreements

62%
claim improved visibility into
supplier performance management

[Source: Aberdeen Group, November 2011]

20%
more likely to have a legal
library of clauses, terms
and conditions

92%

more likely to
search their
contract repository
by keywords, full text,
or terms

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What are the benefits of


CLM Solutions?
Effective centralized contract management
combined with CLM solutions help organizations with
Relationship with
suppliers

64%

more likely to have dispute


resolution procedures with
their suppliers
As a result their supplier
negotiation cycles are

19 days shorter

[Source: Aberdeen Group, November 2011]

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What are procurement


CLM Best Practices?

Understand how contract


management impacts spend
management

Evolve from tactical


approach
to strategic

Include automation in the


CLM solution

Manage and standardize


processes

Have the visibility into spend

Establish a central repository


for all enterprise procurement
contracts

Understand the features and


functionality used in CLM
solutions

Be proactive because being


reactive can be quite
expensive

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How can Selectica


Contract Management
solutions help?

Reduce expenses
and costs associated
with contractual
documents, systems
and processes

Take contract
maintenance out of
the hands of legal
counsel

Improve
auditing
contract
systems and
processes
Create common
policies and
procedures

Maximize
saving
opportunities
Focus on
increasing
efficiency and
driving cost
savings
Control risks and
improve
profitability

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cts

Get a better grip on your spend.


DOWNLOAD WHITE PAPER
Procurement Contract Lifecycle Management
Assessing the Value of Contract Automation
www.selectica.com

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cts