Do Contract Lifecycle Management (CLM) Tools Support Both Buy-Side and Sell-Side Contracts?

Today, one of my clients asked me whether there are tools available on the market that can efficiently manage both buy-side and sell-side contracts. This is an excellent and very relevant question for organizations aiming to streamline their contract management processes.

Finding the Right CLM Tools

Instead of simply searching online, I consulted the highly valuable IACCM CLM tools selection resource. The IACCM, along with Capgemini experts, has assessed hundreds of contract lifecycle management software solutions, categorizing them based on functionality, features, and capabilities. The platform is free to use and allows anyone to run customized searches according to their specific needs.

I found numerous examples that I shared with my client, hoping these insights would also support the finance department in becoming more familiar with the CLM tool landscape.

Understanding the Importance of CLM Tools

At first, I was surprised that this question could arise, as using a unified CLM system seems quite natural for me. But for professionals outside of contract management, this can often be unclear. Simply recommending a tool may not be enough to influence a CFO’s decision. Therefore, I decided to explain what truly matters when selecting contract management solutions.

According to the IACCM, “Contract management is a discipline that supports commercial management through the implementation and oversight of legally enforceable performance commitments, both outbound (to the market) and inbound (from the market). It converts commercial policies and practices and technical capabilities into specific terms and conditions that are offered to or required from its suppliers, customers, or business partners.”

I highlighted the terms “suppliers” and “customers” because they show that contract management processes apply equally to both buy-side and sell-side agreements.

Core Disciplines of Contract Lifecycle Management

Over the years, I’ve categorized contract management disciplines into several key areas that apply across both sides of any business transaction:

• Contract Authoring
• Financial and Performance Management
• Relationship Management
• Compliance Management

These core processes interact with multiple departments, regardless of whether the organization is dealing with procurement (buy-side) or sales (sell-side). While the inputs and outputs may differ, the underlying processes remain the same.

Why Unified CLM Systems Are Essential

1. Smart Repository: A Single Source of Truth

A well-designed contract repository is the foundation of any effective CLM system. Instead of managing separate databases for buy-side and sell-side contracts, a unified repository allows centralized access, efficient search capabilities, and consistent reporting. This eliminates redundancy, simplifies reporting for executives like CFOs, and reduces operational costs.

2. Contract Authoring: Consistency Across Both Sides

Whether drafting purchase agreements or customer contracts, the contract authoring process involves standardized clauses, pre-approved templates, and alternative wording options. A centralized CLM platform streamlines collaboration with legal teams, enabling faster contract creation and minimizing risks associated with deviations from standards.

3. Financial and Performance Management: Aligned Processes

For buy-side contracts, financial management ensures that invoices match the contracted terms and that payments are made for actual deliveries. On the sell-side, the focus shifts to accurate invoicing and ensuring that delivery teams meet contractual obligations. In both cases, efficient financial and performance management helps improve profitability and minimize risk exposure.

4. Relationship Management: Sustaining Long-Term Partnerships

Complex contracts on both buy and sell sides require continuous relationship monitoring. This includes reviewing contract performance, addressing customer concerns, and ensuring supplier commitments are honored. The processes are similar, though tailored depending on which side of the transaction you’re managing.

Why Unified CLM Adoption Has Accelerated

In the past, many organizations struggled to unify their contract management processes due to fragmented solutions or CLM modules built on top of ERP systems, which were originally designed for transactional goods purchasing, not complex service contracts. As the volume of service-based agreements continues to rise, these legacy solutions no longer meet modern contract lifecycle management requirements.

According to research from IACCM, contract management is now increasingly seen as a full life-cycle discipline. Mature organizations recognize the need for integrated CLM platforms that offer advanced analytics, workflow automation, and enterprise-wide visibility into all contracts—whether on the buy-side or sell-side.

Final Thoughts: The Future of Contract Lifecycle Management

Ultimately, selecting the right CLM tool isn’t just about the technology—it’s about combining the right software with well-defined processes, clear ownership, and strong data governance. As organizations place greater emphasis on data analysis and strategic supplier and customer relationships, the value of a unified CLM platform becomes even more significant.

Recent Gartner research also indicates that more mature organizations are adopting integrated CLM platforms that manage both buy-side and sell-side contracts through a single system—an approach I believe my client should also consider.