Contract life cycle management: The strategic value driver in ER&I
Streamlining processes and reducing risks through advanced CLM
Navigating the complex landscape of the energy, resources, and industrials (ER&I) industry requires robust systems and strategies. In this ever-evolving sector, effective contract life cycle management (CLM) is key to staying competitive. Take a deep dive into its role in risk management, process efficiency, and business intelligence.
Challenges facing the ER&I industry
The ER&I industry grapples with an array of challenging trends, from supply chain disruptions due to economic uncertainty and volatile energy prices to high turnover rates. The industry also struggles with balancing energy security, access, and sustainability. These complexities necessitate a robust strategy for managing contracts—a gap that advanced CLM solutions can fill.
The growing role of contract intelligence
Contract intelligence has become a crucial component in the ER&I C-suite toolkit. ER&I companies and their C-suite advisers face disruptions driven by inflation, residual pandemic issues, political instability, and regulatory pressures. Amid these challenges, the focus is shifting toward post-award contract management, aided by increased technology investment and digitization. Streamlining processes, improving speed to execution, and freeing up in-house attorneys’ time by removing bottlenecks are becoming priorities.
The impact of CLM implementation
Implementing CLM can deliver the following benefits:
Increased satisfaction among business stakeholders
- Enhanced relationships with internal clients
- Demonstrable improvement in voice-of-customer KPIs
- Elevated view of legal department and contracting function
Freeing up attorneys’ time to work on strategic matters
- Intelligent contract triage and delegation to alternative resources
- Self-help facilitation
Reduced risk and improved contract compliance
- Standardized and enhanced contracting process
- Potential reduction in revenue leakage
- Discounts and other financial incentives monitored and realized
- Ongoing template improvement
- Ongoing performance obligations management
Automated and intelligent data insights
- Visibility into where your contracts are and what’s in them
- Real-time management information and reporting that drive business intelligence
- Increased visibility into negotiation patterns
Reduction in contracting cycle time and cost per contract
- Process streamlining through removal of bottlenecks, automation, and speed to execution
CLM client chronicles
Companies across the globe have entrusted Deloitte to provide a broad range of technology-enabled contracting and sourcing processes. This has resulted in significant savings for scalability, increased cycle times, and improved contract compliance.
Shaping the future of CLM: Integration with Icertis and SAP Ariba
The end-to-end CLM process is set to revolutionize the ER&I industry. By streamlining, automating, and transforming their CLM processes, ER&I enterprises can achieve better speed and efficiency while improving governance and risk management. Advanced CLM can also ensure they remain competitive in this dynamic sector. Deloitte, Icertis, and SAP Ariba have collaborated to transform contracting processes into a strategic value driver. This integration allows ER&I companies to achieve better speed and efficiency across the contract life cycle while improving governance and risk management.
