Contract life cycle management (CLM) denotes a solution and processes for managing the life cycles of contracts and agreements created and/or administered by, or affecting, an organization. These include third-party or internal contract agreements, such as outsourcing, procurement, sales, nondisclosure, intellectual property (IP), leasing, facilities management, employment and other licensing, plus any other agreements or contractual documents containing obligations that affect the organization now and/or in the future. CLM spans all processes associated with the life cycle of each contractual agreement, from initial request through contract discovery, authoring, redlining and negotiation, valuation, approval, execution, order tracking/matching, compliance/obligation management, amendments, dispute management, auditing, reporting, and fine-tuning to eventual archiving.
E-Sourcing Applications enable organizations to organize, solicit and evaluate requests for information (RFIs) and requests for proposals (RFPs) from suppliers. These applications enable competitive bidding where the outcome is typically a long-term agreement. Most e-sourcing applications also support reverse auction capabilities. Some applications enable large-scale complex bid events with thousands of line items and awards spanning multiple suppliers.
P2P suites are sets of integrated solutions with processes that may be called "transactional" or "operational" procurement. They have automated workflows to request, procure, receive and pay for goods and services across an enterprise. P2P suites are marketed as suitable solutions for processing, at a basic level, all the various types of spend — for indirect goods, direct goods and services. P2P suites optimize the purchasing process, resulting in improved financial controls, process compliance, cost savings/avoidance and reduced/mitigated risk. P2P suites deliver four primary capabilities: • E-purchasing functionality • Access to catalog content • E-invoicing • Accounts payable invoice automation (APIA)
Strategic sourcing application suites are a set of related, integrated solutions that support upstream procurement activities; in other words, the strategic work the procurement team does for planning, assessment and performance management. Strategic sourcing application suites are used primarily by companies with $800 million or more in annual revenue that, typically, have the necessary critical mass of spend. The strategic sourcing application suite delivers four primary capabilities. Most vendors offer these capabilities as separately licensable modules: Spend analysis is a software- and service-based solution for cleansing, enhancing, classifying and analyzing spend data. It features rule-based data cleansing, automated category-level classification, analytics and decision support. Automated spend analysis is used in procurement and sourcing to quantify spend by supplier, category and part, and to identify opportunities for cost reduction and supply base resizing.