Contract Lifecycle Management (CLM)

Contract lifecycle management, usually shortened to CLM, is the process of managing a contract from the initial request through drafting, negotiation, approval, signature, performance tracking and renewal or expiry. It keeps contract terms, obligations and key dates in one controlled record instead of scattered across emails, shared drives and spreadsheets.

In an enterprise environment, CLM connects the terms agreed during sourcing to what is later purchased and paid. Without that link, negotiated pricing and conditions can drift from the purchase orders and invoices raised against them, and renewals or expiries can pass unnoticed.