Managing contracts that run from tens to thousands of pages with a number of clauses, terms, and amendments become tedious for an enterprise. The sole purpose of the contract is to define the business interaction. They tend to forecast expected revenue, control the procurement costs, manage the suppliers and the customers, establish the service levels and protect the intellectual property to mitigate the risks.
Contract processes in enterprises are determined by fragmented and labor-intensive processes, poor/low visibility in the terms and conditions as well as ineffective compliance management. ContCentric can provide Contract Lifecycle Management System (CLMS) solutions using Alfresco as the platform.
Related Blog: Why contract lifecycle management system is a must-have for your organization?
Following is a case study of a Financial Service organization to understand how Alfresco can address the CLMS requirement.
The client is one of the largest financial services groups in Asia. The client provides the full range of financial services to large corporates, SME sector, consumer and wholesale banking activities across Asia and the Middle East.
The client has net earnings of over US $2 billion; operates in more than 15 countries, with over 5 million customers and 14,000 employees worldwide.
For the procurement department, the manual (paper-based) procurement and contract systems were affecting productivity and increasing risks & costs overheads.
The team made a business decision of deploying an online system for contract management for operational efficiency and transparency.
- Time-consuming – the manual system was taking close to a month for the process of vendor enrolment through contract sign-off and releasing the purchase order. This was becoming a huge bottleneck in initiating a new vendor relationship
- Poor vendor management – lack of auto-reminders in the existing manual system were resulting in a lack of visibility on contract renewal & termination, thereby impacting vendor relationships and the corporate image
- Rework – Any changes resulted in rework and the need for data to be re-entered
- Lack of physical security – all contracts and information was stored in filing cabinets, posing a real security threat
- Excessive paperwork and duplication of effort – due to the inability to track contracts and transactions, the same data was being constantly re-entered
Contract Lifecycle Management System (CLMS) using Alfresco ECM (Enterprise Content Management) was recommended. The client carried out an extensive comparative analysis of Alfresco over SAP, Ariba, and Oracle solutions and decided to develop Alfresco based ECM solution since there were many more architectural and technological benefits in addition to cost saving.
- PeopleSoft Integration
- T-FA or TFA (Two Factor Authentication)
Key Benefits After Alfresco Deployment:
Contract Lifecycle Management System (CLMS) allowing the enterprise to improve operational efficiency, obtain enterprise-wide process visibility and strengthen vendor relationship
Above case study describes the experience of ContCentric team members in their earlier roles, and not at ContCentric.