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📋
Commercial Management

Contract Lifecycle Management

Draft, approve, sign, and manage every supplier contract in one place — with zero expiry surprises and full utilisation visibility.

Zero
Contracts expired unnoticed
90-day expiry alerts
80%
Less contract admin time
automated approvals
100%
Utilisation visibility
PO vs contract value
3 days
Contract approval cycle
vs 2–3 weeks manually
Overview

Why this workflow matters

Supplier contracts are the commercial foundation of every supply chain relationship. Yet most procurement teams manage contracts through a combination of shared drives, email chains, and manual reminders — leading to expired contracts, missed renewal windows, under-utilised frameworks, and compliance exposure. Proconomy's CLM workflow digitises the entire contract journey from first draft through multi-level approval, electronic signature, active execution, amendment management, and eventual renewal or expiry. Every contract is always in a known state, every obligation is tracked, and every renewal is managed proactively.

Key Capabilities

  • 6 contract types with full commercial terms
  • Multi-level 3-step approval chain
  • Dropbox Sign electronic signature integration
  • Versioned PDF document storage
  • Real-time PO utilisation tracking
  • 90-day expiry alert and renewal workflow
Process Flow

Step-by-step: how it works

Every step is designed to eliminate manual effort, reduce errors, and give your team real-time visibility at every stage of the process.

✍️01

Contract Drafting

A procurement manager creates a new contract — capturing supplier, commercial terms, pricing structure, and line-level commitments.

30–60 minutes

What happens

  • 6 contract types supported: Framework, Blanket PO, Spot, Tooling/NRE, Consignment, Service
  • Multi-currency with configurable pricing mechanisms (fixed, indexed, escalating)
  • Volume commitments, MOQs, lead times, and incoterms all captured
  • Contract lines linked to parts with price tiers for volume breaks

Roles involved

Procurement Manager
📄02

Document Upload & PDF Generation

The contract document is uploaded or generated as a formatted PDF — capturing all agreed terms for signature.

10 minutes

What happens

  • Upload any existing contract PDF or Word document
  • Generate a formatted PDF directly from system data — no Word template needed
  • Versioned document storage — all versions kept, nothing overwritten
  • Contract schedules, exhibits, and certificates uploaded as supporting documents

Roles involved

Procurement Manager
🔐03

Multi-Level Approval

The contract is submitted for approval through a structured 3-step chain: Legal Review → Finance Approval → CPO Sign-off.

1–3 days (automated routing)

What happens

  • Steps must be completed in sequence — Finance cannot approve before Legal
  • Any step rejection returns the contract to draft for revision
  • All approvers see a complete contract summary before deciding
  • Comments and conditions captured at each approval step

Roles involved

Procurement ManagerFinanceAdmin / CPO
🤖AI Action

AI summarises contract terms and flags any clauses that deviate from company policy for approver attention.

✍️04

Electronic Signature (eSign)

Once approved, the contract is sent for electronic signature via Dropbox Sign — supplier signs first, buyer counter-signs to complete execution.

1–3 days (supplier dependent)

What happens

  • Supplier receives a secure signing link via email — no account required
  • Sequential signing: supplier first, buyer second
  • Signed PDF automatically stored as an immutable, tamper-sealed record
  • Full eSign status visibility: sent → supplier signed → fully signed

Roles involved

Procurement ManagerSupplier
🚀05

Active Contract Execution

The active contract governs all related purchase orders — utilisation is tracked in real time against committed value.

Ongoing

What happens

  • Purchase orders linked to the contract for utilisation tracking
  • Utilisation % = total PO value / contract committed value, updated in real time
  • Buyers see available contract headroom when creating POs
  • Contract terms enforced: MOQs, pricing schedules, lead times

Roles involved

BuyerProcurement Manager
🔔06

Renewal & Expiry Management

The system proactively alerts procurement teams when contracts are approaching expiry — eliminating the risk of trading without a valid agreement.

Proactive alerts at 90/60/30 days

What happens

  • Configurable renewal notice period (default: 90 days before expiry)
  • Expiring contracts surfaced on the PM's worklist as high-priority items
  • Auto-renewal flag for contracts that should roll over automatically
  • Clear visibility of expired, expiring, and active contracts in a single dashboard

Roles involved

Procurement Manager
🤖AI Action

AI identifies contracts where utilisation is low relative to commitment — flagging renegotiation opportunities before renewal.

Team Roles

Who's involved in this workflow

Proconomy gives every stakeholder the right view, the right tools, and the right level of access — so no one is a bottleneck and nothing falls through the cracks.

📊

Procurement Manager

  • Draft contract terms and commercial structure
  • Manage approval submission and follow-up
  • Initiate eSign process
  • Monitor utilisation and trigger renewals
💼

Finance

  • Review financial terms and payment conditions
  • Confirm budget availability
  • Approve finance-related contract clauses
👤

Admin / CPO

  • Final CPO sign-off on approved contracts
  • Set approval routing rules and thresholds
  • Review strategic supplier agreements
🛒

Buyer

  • Create POs linked to active contracts
  • Respect contract pricing and terms
  • Flag contract deviations
🏢

Supplier

  • Review and sign contract via portal
  • Operate within agreed terms
  • Request amendments when conditions change
Business Impact

What your organisation gains

These are not theoretical benefits — they are outcomes that procurement teams experience within the first quarter of deploying this workflow on Proconomy.

🔭
Complete 360°
Contract Visibility

Every contract — its status, utilisation, expiry date, and amendment history — visible in one place. No more hunting through shared drives.

3 days vs 3 weeks
Approval Speed

Structured digital approval routing eliminates the email approval delays that stretch contract execution timelines from weeks to days.

🛡️
Zero surprises
Expiry Risk

Proactive 90-day alerts ensure no contract expires without a deliberate renewal or termination decision — protecting commercial continuity.

📈
Real-time
Utilisation Tracking

Know exactly how much of each contract's committed value has been consumed through purchase orders — enabling renegotiation with data.

Applicable industries

🚗
Automotive

Long-term supply agreements with indexed pricing and volume commitments

✈️
Aerospace & Defense

Long-term agreements with complex compliance clauses and annual price reviews

🏛️
Building & Construction

Project-based contracts with milestone payments and retention terms

⚙️
Industrial Equipment

Service and maintenance contracts with SLAs and penalty provisions

Semiconductor (OSAT)

Commodity-indexed LTAs for bonding wire and substrates with forward-buy intelligence

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See CLM in action

See how Proconomy transforms this workflow for your procurement team — live, with your own scenarios.