Challenge
The client implemented a new contract management process as part of their global initiative to simplify and standardize the way they work
As a part of an organization-wide initiative, the client needed assistance in implementing a new contract management process. They sought a partner to draft, negotiate, and finalize high volume procurement contracts. Some of the challenges faced in the contract management process were:
- Non-standard contract templates and an unstructured contract creation process resulted in significant deviations from the standards prescribed by the legal department in the finalized contracts
- Long turnaround times in finalizing contracts with high volumes, including CDAS, Work Orders, Change Orders, Sponsorships, and Consultancy agreements, which resulted in poor business partner experience
Case Highlights
- Established onshore and offshore delivery centers in USA, India, and Poland with over 100 attorneys to draft, redline, review, negotiate, and finalize contracts Standardized contract templates across businesses and geographies (North America and EMEA)
- Finalized 20,000+ contracts across 6 languages (Italian, Spanish, French, Dutch, German, English)
- The process improvement and optimization initiative eventually led to a 50% reduction in end-to-end contracting cycle times for time spent from contract request to contract finalization
Solution
The client partnered with Nexdigm to implement the contract management process. Across multiple phases of this partnership, Nexdigm:
- Contributed to the standardization of contract templates across businesses and geographies (including North America and EMEA)
- Established onshore and offshore delivery centers in USA, India, and Poland with over 100 attorneys to draft, redline, review, negotiate, and finalize contracts
- Helped develop negotiation playbooks across businesses
- Facilitated the client with a transition from a person- dependent model to a process-dependent model with standard process flows and follow-up cycles
- Supported high-complexity negotiations
- Created a process automation solution for error reduction in contract creation
- Liaised extensively with internal and external stakeholders to drive change management
Impact
Partnering with us helped the client streamline and implement their contract management process. The team finalized more than 20,000 low-to-high complexity contracts across 6 languages (Italian, Spanish, French, Dutch, German, English) annually.
The result of this assignment was:
- Seamless support to multiple business groups across geographies
- Approximately 50% reduction in the average cycle times, resulting in an improved user experience
- Significant reduction in the risk of non-standard terms
- Reduction in time and work-load spent by the in- house legal team on routine issues and freeing their time and attention to focus on their core issues
- Better control and oversight along with the ability to roll out contract related changes easily
Moreover, our timely inputs helped the client update their playbooks and templates, which improved the overall contract management process.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.