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Best Practices in Enterprise Contract Management
CASE STUDY
Real-world examples of how large enterprises were able to minimize risk, reduce costs and realize the full potential of their contractual relationships
Different Businesses. Similar Challenges. One Solution.
The companies featured here come from a wide variety of industries, yet they share many of the same challenges.
As large, global enterprises, they required a contract management platform that could scale and handle the most difficult contract management challenges. They also faced pressure to increase the speed of contracting while simultaneously reducing risk and finding new opportunities for value.
This report offers a perspective on how these companies discovered a way to address their common problems—with the Icertis Contract Management (ICM) platform.
GLO B A L PHARMACEU T ICA L
COMP A N Y
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Icertis Is a Recognized Leader in Enterprise Contract Management
INTELL IGENT
Maximize revenue, control cost, manage risk
ENTERPRISE-WIDE
Any contract, anytime, anywhere in the world
EASY
Easy to deploy, easy to use, easy to adapt
“Icertis has continued to improve its CLM product since it ranked as a Leader in our 2016 Forrester Wave and has acquired a series of Fortune 100 clients as a result.”
Forrester Wave™: Contract Life-Cycle Management, Q1 2019
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THE CHALLENGE
THE SOLUT ION
Airbus has selected the Icertis Contract Management (ICM) platform and the ICM Sourcing application built on the ICM platform to transform its source-to-contract process.
Airbus Chooses Icertis to Lead Digital Transformation
Airbus is one of the largest manufacturers in the world, with over 12,000 direct suppliers. Airbus needed a transformative approach to contracting with suppliers across its commercial aircraft, helicopters, defense and space divisions. Requirements included best-in-class supplier evaluation, selection, contracting and collaboration to support its complex global operation.
The Icertis Contract Management (ICM) platform and ICM Sourcing application impressed Airbus with their ease-of-use. With no training, users were able to use the platform and app to execute source-to-contract actions. The company was also impressed with Icertis’ track-record of rapid global implementations.
THE RE SULTS
• Optimized vendor relationships, accelerated commercial negotiations, increased compliance
• Streamlined source-to-contract process for 12,000 direct suppliers
• Easy integration with existing procurement systems
• Eliminated leakage associated with disjointed sourcing and contracting process
CORPORATE HEADQUARTERS
As Airbus strives to create a better connected, safer and more prosperous world, we needed a transformative approach to contracting that accelerates business velocity while improving compliance. The ICM platform and ICM Sourcing application will allow us to digitally transform our commercial foundation in the supply chain, ensuring best-in-class supplier evaluation, selection, contracting and collaboration—all while reducing supply chain risk.”
Klaus Richter, Chief Procurement Officer, Airbus
Leiden, Netherlands
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CORPORATE HEADQUARTERSTHE CHALLENGE
THE SOLUT ION
Cognizant, a leading professional services comany with 260,000 employees and $15 billion in revenue, wanted to empower employees and improve customer service.
Cognizant Empowers Staff to Improve Service Delivery to Clients
Cognizant needed a better way to monitor and manage thousands of obligations. Business leaders believed the best way to build value with a contract management system was to centralize core contracting functions at the corporate level while still empowering the individuals in the field who were closest to the customer.
With a centralized repository for sell-side contracts, executives at the company gained a 360-degree view of their contracts. The C-suite can now get reports on contract risk, outstanding contractual obligations and other indicators that help them protect their business. Many of the tasks involved in tracking and managing commitments are now automated.
THE RE SULTS
• Contracts controlling 82% of Cognizant’s revenue now digitized
• Tens of thousands of contracts digitally archived
• 94% compliance with contractual obligations managed on ICM due to visibility and ease-of-use
By digitizing contracting processes, we freed up human capital and streamlined processes. Now we have the visibility we need to make more informed decisions on behalf of our clients.”
Frank Marty, Global Head of CLRM Cognizant
Teaneck, New Jersey
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CORPORATE HEADQUARTERS
THE CHALLENGE
THE SOLUT ION
Icertis is helping Daimler ensure agility and flexibility across contracting and sourcing for the passenger cars, commercial vehicles, and financial services divisions globally.
Daimler Leads Digital Transformation With ICM
Daimler recognizes that its competition today includes not only other automotive companies but also tech companies such as Uber, Google, and Apple who are creating autonomous vehicles, drones, artificial intelligence (AI), and other disruptive technologies. To compete in this new landscape, Daimler is completely digitizing its procurement processes.
Because contract management is at the forefront of procurement transformation, Daimler prioritized that piece of the solution and made it the cornerstone of the larger new procurement system—called NPS for short. Daimler chose ICM to lead this transition, and deployed in record time.
THE RE SULTS
• Standardized procurement operations across 500,000 suppliers
• Introduced new features like item-level quote comparisons, automated sourcing requests and state-of-the-art analytics
• Gained access critical to supplier management
Stuttgart, Germany
We chose the Icertis ICM platform and ICM Sourcing app because of their ease of use, ability to address every phase in the contracting and sourcing processes, and seamless integration with third-party systems that support the entire procurement life cycle.”
Dr. Stephan Stathelm, Operations Lead for New Procurement System, Daimler AG
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CORPORATE HEADQUARTERS
THE CHALLENGE
THE SOLUT ION
A global pharmaceutical company required a unified, cloud-based contract management platform that was easy to deploy.
Agility Drives Cost Reduction
The company was using a homegrown contract management system to manage requests and store documents, but the contracts themselves were still created manually. The cobbled-together system was challenging to use, and it didn’t integrate with the company’s diverse IT ecosystem. The rapidly changing organization needed an agile, adaptable solution that was easy to configure and quick to deploy.
Icertis worked with the company to create a fully automated, end-to-end contract management platform. Closely integrated with their existing IT infrastructure, the new system provides 360-degree visibility over global sourcing agreements, providing every user access to critical information. The cloud-based deployment can be configured to accommodate shifting business needs without requiring expensive changes.
THE RE SULTS
• Contracts are created four times faster, saving hundreds of millions of dollars
• Higher compliance with sourcing agreements and fewer maverick contracts
• A vendor portal allows third parties to have secure, controlled access to documents through the cloud
United States
The unified view of global contracts resulted in a streamlined contract management process and significant cost savings. Because the Icertis platform is so easy to deploy, the organization quickly saw a high ROI.
FAST FACT
GLOBAL PHARMACEUTICAL COMPANY
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CORPORATE HEADQUARTERS
THE CHALLENGE
THE SOLUT ION
Microsoft is a world leader in software, services and technology solutions.
Microsoft Leverages Automation to Enable Self-Service Contracting
Due to the rapid growth, Microsoft’s volume licensing platform needed to scale to handle additional contracting needs in multiple languages across the world, especially during the critical quarter-end and year-end periods.
Today, the Icertis Contract Management (ICM) platform manages all contracts for the $60 billion per year Enterprise Volume Licensing and OEM businesses. The system has the capability to easily handle peak demand times, when salespeople rush to get sales agreements signed. With the power of self-service contracting tools, such as dynamic clause assembly, the sales team has been able to dramatically reduce the contract cycle time.
THE RE SULTS
• Auto-scaling system handles peak demand at 175 agreements per minute
• Reduced contract cycle time from 90 days to 15 days
• Global, multilingual support for clauses, templates and agreements for all regions
With the Icertis Contract Management platform, we are providing our sales team with a robust, hyper scale contract management solution to handle the high quarter-end and year-end volumes.”
Tony Ulkekul, Head of Enterprise Commerce Engineering, Microsoft
Redmond, Washington
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THE CHALLENGE
THE SOLUT ION
Roche is a world-leading pharmaceutical resouerc comany with $50 billion in annual income.
New Contract Capabilities Enable Continuing Innovation
With multiple stakeholders located in many countries, contracts were prone to errors and fraught with unnecessary risk. The data contained in each agreement was unstructured, making it difficult for other systems to access business-critical information.
The Icertis Contract Management (ICM) platform introduced several capabilities requested by the legal team including risk profiling, clause deviation analysis and commitment tracking. Automating repetitive tasks accelerated the approval process. The solution facilitates collaboration while holding contract administration costs to a minimum. In addition, Roche can easily monitor contractual obligations, providing the information necessary to reduce contractual risks.
THE RE SULTS
• Created a centralized document repository
• Provided reports to simplify contract governance
• Reduced revenue loss due to missed commitments
• Leveraged automation to improve compliance
CORPORATE HEADQUARTERS
Icertis’ innovative approach to process streamlining and automation ... helped us plug revenue leakage and set us up for working even more closely with our sales teams.”
Rita Kale, Head of Finance, Roche Diagnostics
Basel, Switzerland
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To request a demo, feel free to contact us at:
Icertis, the leading enterprise contract management platform in the cloud, solves the hardest contract management problems on
the easiest to use platform. With Icertis, companies accelerate their business by increasing contract velocity, protect against risk by
ensuring regulatory and policy compliance, and optimize their commercial relationships by maximizing revenue and reducing costs.
The AI-infused Icertis Contract Management (ICM) platform is used by companies like 3M, Airbus, Cognizant, Daimler, Microsoft and
Roche to manage 5.7 million contracts in 40+ languages across 90+ countries. For more information visit icertis.com.
