Agile Management of Contract Obligations

© 2020 Determine, a Corcentric company | All rights reserved.

Agile Management of

Contract Obligations

A joint webinar with IACCM


• The growing impact of automation on

obligation management in raising efficiency and

performance standards.

• Implementing frictionless contract

management to evaluate a party’s compliance

during the lifecycle of the contract to make better

decisions as part of contract renewal, termination

and amendments.

• Addressing developing capabilities within CLM

technology to promote better visibility and

decision making for improving contract obligation

management.

Agile Management of

Contract Obligations

Webinar

© 2020 Determine, a Corcentric company | All rights reserved.4

Sally GuyerGlobal Chief Executive Officer

IACCM

Matt MarkhamVice President of Global Sales Engineering

Determine, a Corcentric Company

Constantine Limberakis Senior Director of Product Marketing

Corcentric | Determine

Speakers


Sally GuyerGlobal Chief Executive Officer

IACCM

“Contracting is the least reformed business process in any organization”

IACCM Jurisdictional and Corporate Benchmarkof Procurement and Contracting Practices Report, February 2019

Industry adoption and use of automation

Deployment and functionality of software

The power of data


Constantine LimberakisSenior Director of Product Marketing

Corcentric | Determine


A shared strategic vision and

complementary product offering

Sourcing

Supplier Management

Contract Management

Procurement

Invoicing

Financial & Budget

Management

Analytics

Fleet management

Capital Equipment

Solutions

Warehouse Management

Services

Electronic Payments

Group Purchasing

Organization

...

“This acquisition enables the combined

organization to provide a holistic and

broad set of capabilities encompassing

strategic sourcing and procurement

consulting, a unified cloud platform for

source-to-pay and contract lifecycle

management, and comprehensive

payment and financing solutions to

improve working capital.”

Matt Clark

President and COO, Corcentric

Corcentric is a leading provider of procurement and finance solutions that transform how companies purchase, pay,

and get paid. Corcentric’s procurement, accounts payable, and accounts receivable solutions empower companies to

spend smarter, optimize cash flow, and drive profitability. Since 1996, more than 6,000 customers from the middle

market to the Fortune 1000 have used Corcentric to reduce costs and improve working capital.


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Comprehensive Solutions for

Procurement, Finance & Legal

Strategic sourcing

& Procurement Advisory,

Acquired 2018

Leading S2P and CLM

platform,

Acquired 2019

Fleet Procurement &

AP Automation


One of the market’s richest features set

on our S2P & CLM Cloud Platform

Invoice Managemente-Invoicing

Invoice OCR

Automatic Reconciliation

Internal Re-Invoicing

AP Automation

Supplier ManagementSupplier Registration & Administration

Supplier Information & Certification

Management

Supplier Risk & Performance

Management

Free Supplier Portal

Contract Lifecycle

ManagementContract Repository

Templates & Approval

Authoring & Negotiation

Clause Library & Self-Service

Lifecycle Management

Obligation & Compliance

SourcingRFx Management

e-Auction

Bid Analysis & Awards

Integration with Contract & Procurement

ProcurementPurchase Requisition

Catalog Management

Request for Quote

Purchase Order Automation

Procurement Contract

AnalyticsBuilt-in Dashboards

Report Generator

KPIs & Forecast

Financial ManagementCost Allocation

Budget Management

Compliance

Time Tracking

Receipt & Dispute Management

Asset Management

Inventory Management

Travel & Expenses


Extending value across business processes

in CLM and Source to Pay

14

Suppliers

Analysis

Sourcing

MASTER DATA | WORKFLOW | DASHBOARDS | SECURITY | NOTIFICATIONS & ALERTS | UI / UX DESIGN | INTEGRATION | AUDIT PlatformCore

Contracts

Procure

Pay

Finance

RFP

Pay

SPEND ANALYSIS | SUPPLIER COMPLIANCE | CONTRACT ANALYSIS | PROCUREMENT ANALYSIS | KPIS | FINANCIAL ANALYSIS

trigger

Receipt

RFI

Create

Invite Certify

Optimize Award

On-Board

Approve

Catalog Request Order

Comply Expire

Invoice

Allocate Cost

Certify Survey Off-board

validate

trigger

trigger

Match

Survey

Amend

trigger

triggervalidate

track

trigger

Budget

Project

Asset/

Inventory Asset

track

Inventory

validate

RFQ

validateNDA MSA

Definition of Demand


Customers

using CLM 15

Clients using Contract Management

Clients come from a range of industries including: financial services, education, media, entertainment, life sciences, hospitality,

healthcare, manufacturing, and technology


Analyst recognition across the

Source-to-Pay & Contract Management

16

Determine, a Corcentric company, ranked as Customer Leader across Procure-to-Pay and Invoice-to-Pay in Q4 2019 Spend Matters SolutionMaps

Determine, a Corcentric company, ranked as a Leader in 2019 Ardent Partner ePayables Technology Advisor research report

Determine, a Corcentric company, achieved outstanding performance scores in Savings, Control and Compliance for 2018 Strategic Sourcing Application Suites by Gartner

Supply and Demand Chain Executive recognize Source One, a Corcentric company, Spend Analysis tool Top 100 list for the past 12 years

Corcentric recognized as a leader by IDC MarketScape: Worldwide SaaS and Cloud-Enabled Accounts Payable Automations 2019

Determine, a Corcentric company, ranked a Customer Leader across Spend Analytics, Sourcing and CLM in Q4 2019 Spend Matters SolutionMaps

Determine, a Corcentric company, named in Forrester’s Now Tech: Spend Analytics Solutions, Q3 2019, consolidated list of leading spend analysis providers

Determine, a Corcentric company, named in Gartner’s Magic Quadrant for Procure-to-Pay Suites 2019 as a Niche Provider, noted for above the average project-related spending P2P capabilities compared to peers.

Strong Performer, The Forrester WaveTM : Source-to-Contract Suites, Q4 2019 states that Determine, a Corcentric company, above average usability and implementation support attracts clients.


Challenges of

Commercial & Contract Management


Poor Contract Obligation

Management

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Contract obligations management means ensuring that contracting parties fulfill the

commitments laid out in the contract. To get the full value out of your contracts, it is imperative

to manage these obligations well… why?

Prevention of Revenue Loss - Average company leaks over 9% of its revenues annually due to contract related issues –

IACCM

Improving off-contract spend – Market average 54% of spend is contract compliant; 66% transactions are contract

compliant – Ardent Partners

Tracking of Compliance – Only 29% of organizations regularly collect data on the compliance with standards/scorecards

by other part of the business or trading partners - IACCM

Avoidance of Fraud – 49% of respondents to PwC Global Economic Crime and Fraud Survey said their companies had

been victims of fraud or economic crime, up from 36% in 2016


Contract management silos

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Business Requirements

Selection Purchase

Transition

Manage Value

Exit / Renew

Commercial Strategy

Market

Sell

Transition

Deliver Obligation

Exit / Transition

Solution Development

Lack of an enterprise

view of contracts

prevents actionable

insights across the

business

- No common repository

- No common templates

- No common workflow

- Lack of meta-data

- No alerting mechanisms

The left does not know

what the right has or

needs

Sales Contract Silo Procurement Contract Silo

Sell-Side

Contracts Buy-Side

Contracts


Business platforms prevent silos

contract and other business data

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Contact Lifecyle Management

Meta-Data Core Engine & Repository

Master-Data Repository

• Meta-data is shared across the entire platform– Including data review, life-cycle

mngt, ratings, certifications• Master Data is set only once

– No multiple entries, consistency, simple integration

• Business Processes can be defined across the suite– Full compliance can be enforced

and checked with complete visibility

Business Documents

Sell-Side

Contracts Buy-Side

Contracts Contract Repository

Templates & Approval

Authoring & Negotiation

Clause Library & Self-Service

Lifecycle Management

Obligation & Compliance


Finding contract obligations with AI

AI as one approach• Learnings gained

from contracts

driving the AI

algorithms to parse

contracts into their

building blocks.

• Extracting key

metadata and

clauses,

semantically

mapping them to

contract types,

standard clauses,

and clause

categories for further

analysis.

• Challenge – it

requires a lot of data

for systems to learn

and provide

accurate outcomes

Contracts

pdf, word

Natural Language

Processing

Machine Learning Meta-Data

ProvisionsMeta-Data


Accept

Ensuring an obligation is met with

workflow

Create Meta-Variables

(e.g., Questions)

Create Questionnaire utilizing Meta-

Variables

Accepts/rejects Questionnaire

Create Certification Rule

to Assign Questionnaire

Obligation gets attached based

on rules

Party completes questionnaire

and assigned to a reviewer

Must Add Certification

Criteria, even if it is “All”

Marked as obligationaccepted

Reject

Create New Contract Record

Contract reaches active state

e.g., effective date

Email is sent to internal or

external party

Email is sent backfor Approval


Contract Lifecycle Management

Making contracts automated, paperless and seamless across your organization.

Contract Repository

Full-Life Cycle Management ■ Configure your environment using rule sets designed to set default lifecycle

behavior for document coordination, collaboration, editing permissions etc.

■ Leverage contract request and approval workflow features expand the use

electronic contracts and documents.

■ Get everyone on the same page with collaborative authoring for internal and

external counterparties

■ Accelerate workflow with advanced contract redlining for managing new and

renegotiated contracts.

Obligation & Compliance Management

■ Manage obligations by leveraging internal and external questionnaires, workflow and certification rules

■ Certification rules are added to the contract

■ Questionnaires are answered and can be evaluated (by

defined reviewers)

Task Management

■ Manage obligations by leveraging internal and external questionnaires, workflow and certification rules

Alert Setup ■ Create questionnaires and certification rules

■ Centralize your contract into one

single repository for easy access in

discovering contracts, importing them

and managing expiry and renewals

■ Create multiple contract types based

on out of the box contract families and

extensions that are not just used for

procurement


Matt MarkhamVice President of Global Sales Engineering

Determine, a Corcentric Company

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Obligations- Business Benefits

● Definitions:

○ A contract is a set of obligations assigned to both sides. It can be a payment task, an

evaluation etc. They need to be completed before a contract expires.

○ These obligations need to be tracked so that we make sure both sides respect the agreement

signed.

● Goals

○ Ensure compliance with regulations with automated workflow

○ Evaluate a party’s compliance during the active lifecycle of the contract (influence on contract renewal)

○ Ensure that risks related to the non accomplishment of a task are measured

○ Assess and report on the compliance of a contract

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Contract Management: Obligations

To track contract compliance, we have added the certification rules on contracts

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● Create questionnaires and

certification rules

● Certification rules are

added to the contract

● Questionnaires are

answered and can be

evaluated (by defined

reviewers)

● Can do this with internal

and external parties


Task Management for contract

obligations

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■ Tasks can collect

information based

on type of task

■ Tasks can be

recurring

throughout the

duration of the

contract


Setting up Alerts for managing

contract obligations

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■ Alerts are often based on a date in

the contract

■ Alerts can require acknowledgement

by a specific user

■ Alerts can have defined escalations


Q&A

29


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Thank you for

joining us today

E: [email protected]

Web: determine.com

Call: US: 1.877.806.1932

Call: Europe: +44 20 3868 0216

mailto:[email protected]


Obligations Management

Requestor

Request flow

Expert Mode

Start here

Contract

Authoring

Legal Review(skippable)

(optional)

Contract

manager

Doc Generation

Authors: read-write

Others: read-only

Rework

Collaboration

Meet Self-

Service

Criteria?

Requestor

Request flow

Rules

Legal Edits(owner role

changed to legal)Assigned

Legal Council

Approval

needed?Signature

Rules

Counterparty (checked out to

external)

Not Self-Service

Check outCheck in

Signature Rejected or Send Back

Final Approval (rule based)

Rejected

Approved

Managed

Contract

Contract

managers

Self-Service

All docs collaborative,

Access varies by doc type

Check-in/out and locking

rules apply

Docs locked during e-

signature phase

Can upload final doc for

manual signature

Create map of contract

obligations process based

on certifications??