Contract Compliance

Are Contract Management Tools Falling Short for Procurement Teams? A Closer Look

In today’s digital landscape, many organizations rely on contract lifecycle management (CLM) platforms like Icertis, SAP Ariba, Coupa, DocuSign CLM, and Workday to streamline their contract processes. However, there’s an ongoing question within procurement circles: Are these tools truly designed with procurement-specific needs in mind, or are they more tailored to other departments?

Recently, I shared a meme highlighting some procurement frustrations with contract tools, which sparked discussions revealing common pain points across various organizations. Drawing from my experience working with these platforms, I’ve observed several recurring patterns that suggest a disconnect between what these systems offer and what procurement teams actually need.

Common Patterns Among Contract Management Tools

1. Legal and Compliance Focus:
   These platforms are often optimized for legal teams, emphasizing control over templates, approval workflows, and compliance protocols. While crucial, this focus can inadvertently sideline procurement’s operational requirements.

2. IT-Driven Security and Integration:
   IT departments typically sign off on these platforms because they offer enterprise-grade security, integrations with other enterprise systems, and robust compliance features. This ensures risk mitigation but doesn’t necessarily facilitate procurement-specific workflows.

3. Limited Procurement Visibility:
   For procurement teams, access to real-time data and insights is vital. However, many platforms store commercial terms in attachments rather than structured data fields, making tracking cumbersome unless we export data into spreadsheets and analyze offline.

4. Renewal and Alerts Management:
   Renewal alerts often go unnoticed until it’s too late—leading to missed opportunities or compliance issues. Many systems lack proactive notifications tailored to procurement timelines.

5. Overhyped AI Capabilities:
   AI-driven insights are marketed as game-changers, but their reliability is inconsistent when it really counts. Procurement professionals often find these features underwhelming or not as user-friendly as promised.

6. Performance and Spend Tracking Gaps:
   Effective procurement decisions require clear visibility into contract performance and spend analytics. Yet, many CLM platforms offer minimal built-in tracking, forcing teams to develop shadow systems or parallel tracking processes.

The Shadow System Phenomenon

In numerous organizations, procurement teams have resorted to managing critical tasks outside the official CLM system. These shadow systems—spreadsheets, reporting tools, or bespoke software—handle everything from vendor performance to renewal tracking. Meanwhile, the primary CLM platform remains primarily