Contract Lifecycle Management
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1 Contract Lifecycle Breakout Session Matthew O Connor Senior Consultant
2 Contract Lifecycle in 30 Minutes What is CLM? Why do it When do we do it How do we do it What s New in BravoAdvantage 16 How Contract has Evolved Preparing your users Success Factors Q & A 2 2
3 The BravoAdvantage Solution Savings Spend Analysis Supplier Value Sourcing SourcingPlus Contract Lifecycle Invoice Purchasing Catalogue All Rights Reserved - Confidential 3
4 What do we mean Contract life cycle management (CLM) is a solution and process for managing the life cycle of contracts created and/or administered by or impacting the company. These include third-party contracts, such as outsourcing, procurement, sales, nondisclosure, intellectual property, leasing, facilities management and other licensing, and agreements containing contractual obligations now and in the future. Gartner Contract life cycle management is the process of systematically and efficiently managing contract creation, execution and analysis for maximising operational and financial performance and minimising risk. CIPS 4 4
5 Why would we use it? Ensure Value for Money is recognised Contract Compliance Meeting Business Objectives Building Supplier Relationships Striving to improve Delivering and formalising the procurement results, often months of hard work by you! 5 5
6 When do we use it Contract Types Supplier Segmentation / Relationship VALUE Leverage High Spend / Low Risk Strategic High Risk / High Spend VALUE Performance Managed High Spend / Low Risk Contract KPIs Strategic Alliance High Risk / High Spend Contract KPIs Non-Critical Low Risk / Low Spend Bottleneck High Risk / Low Spend Transactional Relationship Low Risk / Low Spend Collaborative Relationship High Risk / Low Spend Contract KPIs RISK RISK 6 6
7 How do we do it Contract Contract Performance Contract Life Cycle Contract Repository Contract Contract Maximisation Contract Settings/Overview Additional Information Price Milestones Messaging Negotiation Stakeholder Input Performance Scorecards Contract Compliance Benefits Benefits Savings Tracking Central Repository Improved Visibility Expiry Alert Auditability Compliance Risk Internal/External Approval Basic Performance Reporting Benefits Improved Adoption Improved Added Value Supplier Relationships Benefit Realisation 7 Business Level Reporting 7
8 Contract Repository & Authoring Contract Overview & Metadata 8 8
9 Negotiation Contract Negotiation Version Control Redlining Approval Quicker Negotiation Pricelist Negotiation Price Change Tracking Audit Trail Approval Reduced Rick of Incorrect Invoicing Section 1 Section 2 Item Title Description Remarks UOM Quantity Unit Price Total Price Item Title Description Remarks UOM Quantity Unit Price Total Price Item Title Description Remarks UOM Quantity Unit Price Total Price Approve Section 3 Price List Reject Heading Heading Create New Version Heading 9 9
10 Go Live Manage the Agreement Contract Document Prices Data Manage Performance Milestones Scorecards Manage Suppliers & Stakeholders Contract Usage Communication Complaints Review Partnerships 10 10
11 Performance Individual supplier trending Cross Supplier / Contract Dashboard Summary Contract Milestones KPI s and Performance Categories 11 11
12 Review and Improve What has worked or not worked that can either improve the current contract or input into the next process to make that more successful Supplier Rationalisation Add Value Buying Trends Performance Trends Savings Recognition 12 12
13 What s New in Bravo Advantage 16 Contracts Lifecycle multiple business units can be assigned per contract (allowing each contract to be assigned to the business units that it applies to) The business unit capability improves the way that procurement departments assign their contracts to the specific departments that they ultimately benefit, greatly improving reporting and downstream approval routing. Approval Matrix for Master Contract Document Based on the type, value, business unit or category assigned to the object (or any combination of the four factors) customers can define the approval process and approval list that users must utilise to move the contract to the next stage
14 System Demo System Demonstration 14 ALL RIGHTS RESERVED - Confidential
15 How the Solution has Evolved When taking a contract-centric view of the procurement process there are multiple additional capabilities that will further add value to your management of contracts Sourcing Contract Savings Spend Analysis Supplier Value Catalogues Collaboration Supplier Performance 15 15
16 What Can You Do Communicate information about BravoAdvantage16 Encourage users to access the Prep Site Consider the needs of the Business Define a Contract/Supplier Strategy Are there some Quick Wins Medium Term Goals Long Term Goal 16 16
17 Success Factors 1. Be Realistic 2. Involve Stakeholders and Suppliers Upfront 3. Strive for Compliance on Both Sides 17 17
18 Contract Lifecycle Summary Create and store contracts with full version history, reporting and approvals Capabilities Centralised repository of enterprise contracts Standardised contract templates/types Automated contract renewal/expiry alerting Automated milestone/obligation tracking and alerting Sophisticated interactive negotiation between parties, including on-line redlining, collaboration, audit trails, versioning, and electronic signatures Benefits Shorter contract negotiation lifecycle Automated and accelerated approval processes Increased visibility to manage the contract lifecycle Invoke legal resources only when necessary to protect company assets All Rights Reserved - Confidential 18
19 Q&A 19 19
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