Why SaaS CLM is Important

Managing SaaS contracts is critical for organizations, especially as the adoption of SaaS tools continues to grow. Poorly managed contracts can lead to overspending, compliance risks, and missed renewal opportunities. SaaS CLM ensures:

• Cost Efficiency: Prevents overspending on unused licenses or duplicate subscriptions.

• Compliance: Ensures adherence to contractual terms and regulatory requirements.

• Renewal Management: Helps avoid service interruptions or unfavorable auto-renewal terms.

• Vendor Relationships: Improves collaboration and negotiation with SaaS providers.

Key Stages of SaaS CLM

1. Contract Creation and Negotiation

This stage involves drafting the contract, negotiating terms, and ensuring all parties agree on the scope, pricing, and conditions. Special attention should be given to clauses related to data privacy, termination, and renewal.

2. Approval and Execution

Once the terms are finalized, the contract is reviewed and approved by relevant stakeholders. After approval, the contract is executed and stored in a centralized system.

3. Monitoring and Compliance

Active contracts need regular monitoring to ensure compliance with agreed terms. Tracking key metrics like usage, costs, and performance is crucial to avoid potential disputes.

4. Renewal and Termination

As contracts approach their renewal date, businesses must assess their ongoing value and decide whether to renew, renegotiate, or terminate the agreement.

Best Practices for SaaS CLM

Centralize Contract Storage

Using a centralized system to store and manage all SaaS contracts ensures easy access and minimizes the risk of losing critical documents.

Automate Alerts

Set up automated reminders for key dates like renewal deadlines or compliance audits to avoid missed opportunities or penalties.

Conduct Regular Audits

Periodic audits of SaaS contracts and usage help identify inefficiencies, unused licenses, and opportunities for cost savings.

Collaborate Across Teams

Involve all relevant departments; including legal, finance, and IT to ensure a comprehensive approach to SaaS contract management.

Streamlining SaaS CLM: Focus on Costs, Usage, and Renewals

ShiftControl is designed to complement your overall SaaS contract lifecycle management by offering clear visibility into the key areas that impact your bottom line. It helps you keep track of license usage, manage costs, and stay on top of renewal deadlines through timely notifications and centralized tracking of essential data. This approach allows you to identify overspending, better understand your software utilization, and plan effectively for upcoming renewals, all while fitting smoothly into your existing processes.