Making waves in LSHC: The role of strategic end-to-end contract management
Streamlining processes and reducing risks through advanced CLM tools
Amid evolving challenges and increasing competition in the life sciences and health care (LSHC) sector, the strategic role of contract life cycle management (CLM) has come to the forefront. Learn how leveraging advanced CLM tools and strategies can transform contract management as well as enhance business growth, risk management, and stakeholder satisfaction.
Addressing adversities in the LSHC arena
The LSHC industry is in the midst of a significant transformation driven by increased consumerism, a shift toward value-based care, and the advent of digital technology. These changes have amplified competition between traditional players and new entrants. Additionally, high interest rates and inflation have escalated the cost of investment capital, impacting product development runways. There’s also a push for more diverse and convenient clinical trials spurred by partnerships with retail pharmacies and recent legislation. Supply chain visibility remains elusive, and an unprecedented staffing shortage is causing longer wait times and raising the risk of medical errors.
The growing role of contract intelligence
Amid this complexity, contract intelligence has gained prominence. LSHC companies and their C-suite advisers are wrestling with supply chain disruptions, regulatory pressures, and internal cost-cutting measures. The need for efficient contract management is paramount and is catalyzing an increased focus on technology investment, data management, digitization of contracts, and attention to post-award phases. 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 key performance indicators
- 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 LSHC industry. By transforming contracting processes into a strategic value driver, the collaboration between Deloitte, Icertis, and SAP is helping prevent or manage procurement delays, revenue leakage, and lack of insight into contractual risk. LSHC enterprises are now equipped to achieve better speed and efficiency across the contract life cycle, improving governance and risk management by streamlining, automating, and transforming their CLM processes. These new capabilities can herald a promising future for the LSHC industry, making it better equipped to navigate its unique challenges and seize growth opportunities.
