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CLM

Jun 26

Revolutionizing Procurement with Icertis Contract Intelligence

By Icertis and Premikati No Comments

Every cog in a corporate machine plays an important role, and procurement is no exception. As organizations strive for operational efficiency, procurement stands as a key driver for business success.

Yet, one area in procurement often proves challenging – contract lifecycle management. That’s where Icertis comes into play. By providing an intelligent, cloud-based CLM solution, Icertis is not just navigating but revolutionizing the procurement landscape.

The Importance of Efficient Procurement

Before we dive into Icertis’s unique solutions, let’s shed some light on the integral role procurement plays in a business.

A study by Deloitte shows that organizations with excellent procurement practices have 133% greater return on investment than their counterparts. These efficient operations can often be the difference between business success and failure.

Icertis: The CLM Trailblazer

So, how does Icertis fit into this scenario? Here’s the truth: contracts are at the heart of procurement. They define obligations, responsibilities, and performance metrics, and any mismanagement in CLM can lead to wasted resources, compliance issues, and poor supplier relationships.

Enter Icertis Contract Intelligence, the platform that’s making CLM an integral part of the procurement strategy. The platform seamlessly integrates with procurement processes, thus transforming contract management from a cumbersome chore to a streamlined, value-generating function.

Mitigating Risk with Icertis

Risk is an inherent part of any contract, and a robust mechanism to identify, analyze, and manage these risks is a necessity in the modern business world. This is where Icertis truly shines.

Icertis’ risk management capabilities allow organizations to stay proactive rather than reactive. The platform enables the tracking of contractual obligations and adherence, thereby reducing the likelihood of litigation, reputational damage, and financial loss.

Indeed, Gartner reports that by 2023, more than 30% of global enterprises will have automated contract obligation tracking, thus reducing risk exposure by 50%.

Ensuring Compliance: A Central Tenet of Icertis

Ensuring compliance in today’s complex regulatory landscape is no easy feat, yet Icertis tackles this challenge head-on. The platform provides a centralized repository for all contracts and associated documents.

This ensures every transaction, and every procurement activity, adheres to relevant regulations, avoiding the potential of legal entanglements.

Enhancing Supplier Relationships

Managing supplier relationships effectively is key to procurement success. Icertis takes this to a whole new level by facilitating communication and ensuring all parties adhere to their contractual terms. Better-managed contracts lead to more productive relationships and a more efficient procurement process.

Unparalleled Visibility and Control

One of the standout features of Icertis is the visibility it provides over the entire contract lifecycle. With this feature, procurement teams are empowered to make better decisions, improve efficiency, and increase control over procurement activities.

A 2020 Forrester study found that organizations using AI-infused CLM solutions like Icertis experienced a 75% reduction in uncontrolled contractual spend.

Key Benefits of Icertis in Procurement

Icertis provides a myriad of benefits, including:

  • Seamless Integration: Icertis dovetails with your procurement processes, enabling an effective and efficient CLM system.
  • Robust Risk Management: Identity, analyze, and manage contractual risks like never before.
  • Ensured Compliance: Centralized contract storage ensures that all your procurement activities adhere to relevant regulations and standards.
  • Enhanced Supplier Management: Streamline your procurement process and bolster supplier relationships.
  • Complete Visibility and Control: Make better decisions with complete transparency over your contract lifecycle.

 

In a world where efficiency is key, Icertis is leading the way in revolutionizing procurement. With robust risk management, compliance assurance, enhanced supplier management, and full lifecycle visibility, Icertis is delivering an efficient and effective CLM system that every procurement team needs.

Click here to connect with someone from our team

Jun 05

The Power of Automation: Unleashing Efficiency with SAP Ariba Commerce Automation

By Procurement No Comments

Businesses today are realizing the urgent need for procurement and spend management innovation. Key decision-makers, particularly those in finance and procurement, seek solutions to streamline processes, boost efficiency, and improve organizational visibility. This is where SAP Ariba Commerce Automation enters the scene. 

 What is SAP Ariba Commerce Automation? 

SAP Ariba Commerce Automation is a solution designed to supercharge your procurement processes through powerful automation. Its primary goal is to enhance operational efficiency and ensure a steady supply chain by improving spend visibility and fostering efficient collaboration with suppliers. 

It’s a solution recognized for its innovation and effectiveness, with SAP being recognized as a leader in the 2022 Gartner Magic Quadrant for Procure-to-Pay (P2P) suites for the seventh consecutive time. 

Key Features: A Deep Dive 

SAP Ariba Commerce Automation comes with a suite of features designed to optimize procurement operations: 

  • Regulatory and Business Process Compliance: The solution ensures digital matching of invoices to POs and contracts, thus enabling compliance with regulatory requirements through e-invoicing. Transactions are validated based on configured business rules, reducing manual intervention and exceptions. 
  • Automated Procurement Workflows: The solution automates manual processes, freeing up workforce capacity, decreasing operating costs, and increasing productivity. It also enables digital delivery of POs to suppliers across a business network. 
  • Supplier Portal: The portal allows suppliers to flip a received PO on the network into an invoice, eliminating data entry and other errors. It also gives suppliers a view into invoice status updates, reducing inquiries. 
  • Invoice Status Portal and Transaction Visibility: This feature provides visibility into orders and invoices with a holistic view of spend. It allows suppliers to configure notifications to receive emails when their invoice status changes, promoting adoption for long-tail suppliers through self-service updates and invoice visibility. 

Impressive Benefits 

The benefits of SAP Ariba Commerce Automation are as significant as its features. These benefits include: 

  • Improved Procurement Compliance: The solution supports business process compliance with highly configurable business rules on the network. 
  • Automation of Spend Management Processes: The solution enhances productivity, lowers operating costs, and frees up people’s capacity by automating paper-based and manual processes. 
  • Increased Transparency of Business Spending: The solution provides a holistic view of organizational spending with greater visibility into orders and invoices in one platform. 

Recent Innovations and Future Outlook 

SAP is not resting on its laurels. Recent innovations and planned updates include: 

  1. Guided Buying: The next evolution in guided buying is here. The new capabilities improve the buying experience and leverage AI, intelligent recommendations, and machine learning. This creates a holistic view of what the buyer is purchasing and how it aligns with their organization’s environmental, social, and governance (ESG) goals. 
  1. SAP Central Procurement: The latest release of SAP Central Procurement addresses the challenges associated with centralizing procurement. It delivers the benefits of a uniform, centralized procurement system across all direct and indirect categories — without reworking individual solutions spread across the organization. 
  1. SAP Category Management: A new category management solution, SAP Category Management, is set to roll out this year. It will provide actionable market intelligence and category insights, empowering category managers and procurement professionals to make strategic category decisions. 

 

Statistics Highlighting the Importance of Procurement Optimization 

To underscore the significance of these advancements, let’s consider some compelling statistics: 

  1. Companies that excel at procurement have 20% lower costs, less supply chain disruption, and up to 55% fewer supplier defects (Source: The Hackett Group).
  2. High-performing procurement organizations operate at up to 21% lower labor costs (Source: The Hackett Group).
  3. According to Gartner, by 2023, organizations that have adopted AI in their supply chain management strategy will reduce errors by up to 50%. 

 

From the rollout of SAP Category Management to the enhanced supplier management and the integration of AI and machine learning, SAP is poised to redefine procurement and supply chain management. 

As procurement professionals, we must stay abreast of these developments, leverage these innovative solutions, and drive strategic value and business outcomes in our organizations. 

Apr 04

Contract Lifecycle Management

By Procurement No Comments

Contracts are the backbone of modern business. They serve as the foundation for relationships between parties, whether it’s a company and its employees, a supplier and a customer, or a vendor and a partner. However, managing contracts can be a complex and time-consuming process. This is where Contract Lifecycle Management (CLM) comes in.

CLM is the process of managing contracts from initiation through execution, all the way to termination. It’s a crucial component of any business, ensuring that contracts are well-structured, compliant, and ultimately, profitable. In this article, we’ll delve into the key aspects of CLM and how it can benefit your organization.

The Lifecycle of a Contract

Before we delve into CLM, it’s important to understand the different stages of a contract’s lifecycle. There are typically four phases of a contract lifecycle:

  1. Initiation: This is the stage where a need for a contract is identified. It could be a request for proposal (RFP) from a vendor or an employment agreement for a new employee. During this stage, parties define the scope of the contract, identify the key stakeholders, and establish the terms and conditions.
  2. Negotiation: Once the scope and terms are defined, the parties negotiate to reach an agreement. This is where the details of the contract are fleshed out, including payment terms, delivery schedules, and service level agreements (SLAs).
  3. Execution: Once the parties have agreed to the terms, the contract is executed. This involves signing the agreement and exchanging copies with all parties involved. During this stage, it’s important to ensure that all parties understand their obligations and that the contract is compliant with all relevant laws and regulations.
  4. Termination: Finally, when the contract reaches the end of its term or when the parties decide to terminate it, the contract is closed. This may involve a handover of services, payment of any outstanding fees, and the return of any assets.

The Benefits of CLM

  1. Increased Efficiency: By streamlining the contract process, CLM can save time and increase efficiency. Automated workflows can ensure that tasks are completed in a timely manner, reducing the risk of delays and errors.
  2. Improved Compliance: CLM can ensure that contracts are compliant with relevant laws and regulations. This is particularly important in industries such as healthcare and finance, where non-compliance can result in significant penalties.
  3. Better Visibility: With CLM, all parties involved in the contract have access to the same information, providing greater visibility into the contract process. This can help to prevent misunderstandings and disputes.
  4. Reduced Risk: By ensuring that contracts are well-structured and compliant, CLM can help to reduce the risk of legal disputes and financial losses. This is particularly important for high-value contracts and those with long-term commitments.
  5. Increased Agility: With CLM, contracts can be easily updated and modified as business needs change. This can help to ensure that contracts remain relevant and beneficial to all parties involved.

In today’s fast-paced business environment, effective contract management is essential. By implementing CLM, organizations can streamline the contract process, improve compliance, reduce risk, and increase efficiency. Whether you’re a small business or a large enterprise, CLM can help you to manage contracts more effectively, ultimately driving profitability and success.

 

For your large enterprise CLM needs, visit our partner Icertis at www.icertis.com

Apr 04

Contracts of Adhesion

By Procurement No Comments

Contracts are essential documents in business and legal transactions. They help to establish the terms of a relationship between two or more parties and can provide a framework for resolving disputes. One type of contract that is becoming increasingly common is the contract of adhesion. In this blog, we will discuss the benefits and enforceability of a contract of adhesion and provide a list of key points to consider when using this type of contract.

What is a Contract of Adhesion?

A contract of adhesion is a standardized form of agreement that is offered to one party with little or no ability to negotiate the terms of the agreement. These types of contracts are typically found in consumer transactions such as insurance policies, software licensing, and car rentals. The terms of the agreement are usually non-negotiable, and the party with less bargaining power must accept the contract’s terms to obtain the desired goods or services.

Benefits of a Contract of Adhesion

  1. Standardization: Contracts of adhesion provide a standardized form of agreement that is easy to understand and use. This can save time and money for both parties involved in the transaction since they do not have to negotiate the terms of the agreement.
  2. Accessibility: These contracts are usually written in plain language, making them more accessible to consumers who may not have a legal background. This can help to promote transparency and fairness in the transaction.
  3. Prevents Surprises: Standard form contracts can help to prevent any surprises or hidden clauses that may be detrimental to the party’s interests.

Enforceability of a Contract of Adhesion

  1. Legal: Courts generally consider contracts of adhesion to be legal as long as they are not unconscionable or violate public policy. In the United States, for example, courts have ruled that such contracts are legal as long as they meet certain standards of fairness and transparency.
  2. Opportunity to Review: Courts will consider whether the party with less bargaining power had the opportunity to review the terms of the agreement before signing it.
  3. Unconscionable: If the terms of the contract are unconscionable or shock the conscience, a court may find the contract unenforceable.

Key Points to Consider When Using a Contract of Adhesion

  1. Understand the terms of the contract: It is essential to review and understand the terms of the contract before signing it. Make sure you understand what you are agreeing to and what your obligations are under the agreement.
  2. Seek legal advice: If you have any questions or concerns about the contract, it is advisable to seek legal advice before signing it.
  3. Negotiate where possible: While the terms of a contract of adhesion are typically non-negotiable, it may be possible to negotiate certain terms. It is worth exploring this option before signing the contract.
  4. Consider the consequences: Think about the potential consequences of signing the contract. Consider what would happen if the other party breaches the agreement or if you are unable to fulfill your obligations under the contract.

Contracts of adhesion can offer both benefits and drawbacks to parties involved in a transaction. While they provide a standardized and accessible form of agreement, the party with less bargaining power may be at a disadvantage if they do not fully understand the terms of the contract. It is essential to review and understand the terms of a contract of adhesion before signing it, seek legal advice if necessary, and consider the potential consequences of signing the agreement.

 

For your large enterprise CLM needs, visit our partner Icertis at www.icertis.com

Apr 04

Contract Management Software

By Procurement No Comments

What is contract management software? Contract management software is a tool that automates and centralizes the management of contracts. It enables businesses to track, manage, and analyze the lifecycle of contracts from creation to renewal. The software provides a comprehensive solution for managing contracts, including drafting, negotiating, approving, executing, and archiving them.

Benefits of contract management software:

  1. Improved efficiency: Contract management software can help businesses automate manual processes and reduce the time and effort required to manage contracts. It can also help to eliminate errors and inconsistencies that can occur in manual processes.
  2. Increased visibility: Contract management software provides a centralized repository for all contracts, making it easier for businesses to access and track their contracts. It can also provide real-time alerts and notifications, helping organizations to stay on top of important deadlines and milestones.
  3. Better collaboration: Contract management software can facilitate collaboration between different teams and stakeholders involved in the contract management process. It can enable multiple users to access and work on the same contract simultaneously, ensuring that everyone is on the same page.
  4. Risk reduction: Contract management software can help businesses to mitigate risks associated with contracts, such as compliance issues, contractual disputes, and missed deadlines. It can provide businesses with the tools they need to manage contracts more effectively, reducing the risk of legal or financial penalties.
  5. Cost savings: Contract management software can help businesses to reduce costs associated with contract management by eliminating the need for manual processes, reducing the risk of errors, and optimizing contract terms and negotiations.

Features of contract management software:

  1. Contract authoring and drafting: Contract management software provides tools for creating and editing contracts, including templates, clauses, and workflows.
  2. Contract storage and retrieval: Contract management software provides a centralized repository for storing and retrieving contracts, enabling businesses to easily access and manage their contracts.
  3. Contract tracking and monitoring: Contract management software provides real-time alerts and notifications, enabling businesses to track and monitor important deadlines, milestones, and obligations.
  4. Contract negotiation and approval: Contract management software provides tools for negotiating and approving contracts, including electronic signature capabilities.
  5. Contract analysis and reporting: Contract management software provides tools for analyzing and reporting on contract data, including contract performance, compliance, and risk management.

Contract management software can provide businesses with the tools they need to manage their contracts more effectively, reducing the risk of legal and financial penalties, and optimizing contract terms and negotiations. By automating and centralizing the contract management process, businesses can improve efficiency, increase visibility, facilitate collaboration, reduce risk, and save costs. 

 

For your large enterprise CLM needs, visit our partner Icertis at www.icertis.com

Apr 03

Contract Trends in 2023

By Procurement No Comments

Contract management is a critical aspect of any organization’s operations, and it’s especially important for executives who are responsible for managing the financial health of their organizations. Effective contract management can help you mitigate risk, increase revenue, and reduce costs, but it can also be a complex and time-consuming process. In this post, we’ll explore the top five pain points that businesses like yours face with regard to contract management, and we’ll provide some best-in-class solutions to help address these challenges. 

 

Lack of visibility into contract terms and obligations 

 

One of the biggest challenges with regard to contract management is the lack of visibility into contract terms and obligations. This can result in missed opportunities to save money, increase revenue, or mitigate risk.

Best-in-class solutions for this challenge include contract lifecycle management (CLM) software that centralizes all contracts in a single repository and provides advanced search and reporting capabilities. With CLM software, you and your team can easily access all contract data, including key terms, obligations, and milestones, and they can quickly generate reports to help them make informed decisions. 

According to a report by the International Association for Contract and Commercial Management (IACCM), companies implementing CLM software can reduce contract cycle times by 50% and increase compliance by 80%. 

 

Inefficient contract creation and negotiation processes 

 

Creating and negotiating contracts can be a time-consuming and inefficient process, especially when done manually.

Best-in-class solutions for this challenge include contract authoring software that streamlines the contract creation process and automates workflows – which can easily help you create contracts using pre-approved templates and standardized language, and automate workflows to ensure that contracts are reviewed and approved in a timely manner. 

 A study by Aberdeen Group found that companies that use contract authoring software can reduce contract cycle times by 50% and increase contract accuracy by 90%. 

 

Poor contract management workflow and process 

 

Inefficient workflows and processes for managing contracts can lead to delays, missed deadlines, and increased risk. CLM software can easily manage contract workflows and approvals, as well as receive automated alerts for key contract milestones and renewal dates. 

According to a report by the IACCM, companies that implement CLM software can reduce cycle times by up to 50%, increase compliance by up to 80%, and reduce legal costs by up to 30%. 

 

Poor contract compliance and governance

 

According to a study by Forrester, companies that use CLM software can reduce legal costs by up to 30% and increase compliance by up to 70%. 

While contract compliance and governance can be a complex and time-consuming process. Best-in-class solutions for this challenge include CLM software that provides automated compliance and governance workflows, as well as real-time alerts for non-compliant activities. 

 

Limited scalability and flexibility 

 

Scalability is a concern for any growing business.  Solutions like SAP Ariba CLM or ICertis CLM software provide scalability and flexibility, as well as customizable workflows and integrations with other business systems. These will ensure your contract management processes can adapt to changing needs, reducing risk and increasing efficiency. 

 

To learn more about:

Contract management and its impact on procurement click here. 

Complex contract management solutions click here.

 

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