An Innovative Contracts Administration Process
Customer: US Sales & Marketing Arm of a Multinational Automaker
The customer approached ZeroChaos to solve the governance and demand management needs of their contract review, negotiation, and approval processes. The transaction complexities (ranging in the hundreds of millions annually) cover a wide range of product and service acquisitions including; the purchase of software licenses, cloud services and professional services detailed under Statement of Work agreements.
The initial discovery session revealed:
The ZeroChaos Solution:
By taking the time to understand the client’s current processes and working directly with them, we were able create a solution that greatly exceeded their expectations. Highlights included:
The positive results have allowed expansion from an initial technology and consulting procurement scope, to a company-wide hub for a variety of contract types needing expert review, analysis, and negotiation.
The Full Success Story:
In 2009, the client’s procurement and technology departments approached ZeroChaos regarding the viability of performing contract governance and demand management services. The client was interested in outsourcing these services in order to improve the quality, cycle time, and risk prevention of their contract review, negotiation and approval processes covering a wide ranging of product and service acquisitions, including the purchase of software licenses, cloud services and professional services. As a trusted partner, they asked us to apply our expertise to create a contract governance and management solution to fit their specific business needs. Upon the completion of our initial discovery, it became clear that the following challenges existed:
How Success Was Achieved:
ZeroChaos conducted stakeholder interviews and workshops to review each of the steps in the contract review and approval process, identified gaps and redundancies and worked with the client to design our process, communication, and technology roadmap. A little over a year later, after additional customer feedback, a flexible customized program was rolled out at the client’s corporate headquarters with remote workers available when demand exceeded onsite capacity, making it possible for them to manage their contracting needs and to understand their risk exposure. This Contracts Solution included standardized reports, operation manuals and training materials, updated workflows, contract and data quality service levels, formal escalation and risk management, demand management, and cycle time expectations and notices. By 2011, the Contract Solution team was processing over 2,000 contracts annually for spend in the hundreds of millions of dollars.
By 2013, the Contracts Solution was expanding to include marketing, real-estate, finance and construction contracts. The results were overwhelmingly apparent:
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