Contract Management Challenges for Manufacturers
Modern manufacturers are grappling with rapidly evolving competition, dynamic global supply chains, and shifting regulations. In order to stay competitive, winning companies need to become more agile and stay close to both their customers and suppliers. And at the heart of each of these relationships is a contract.
In working with some of the world’s largest manufacturers, Icertis has identified a number of common challenges:
- Contract storage is fragmented across multiple departments and systems
- Contracts are poorly integrated with critical ERP, CRM, and P2P systems, impeding compliance
- The source-to-contract process is often fragmented, preventing effective supplier risk assessment and performance tracking
- Sales and sourcing happen separately, without the tools to efficiently deliver the back-to-back contracting that is essential to ensure that proposals are designed effectively for new customers
- Lack of visibility makes it difficult to track obligations and SLAs in “product-as-a-service” scenarios
Ultimately, we find that manufacturers face a broad set of contracting challenges that span sourcing, sales, and corporate contracts. If left unaddressed, these challenges have the potential to lead to higher procurement costs, costly non-compliance, and dissatisfied customers.
Icertis Solutions for Manufacturing
Icertis has implemented Contract Lifecycle Management (CLM) solutions for some of the world’s largest manufacturers, leveraging the ICM platform combined with our powerful suite of applications.
While the ICM solution is ultimately configured for each customer, our CLM for manufacturing capabilities include:
- Fully integrated source-to-contract functionality that surfaces contract insights and supplier performance data during the sourcing process
- Supplier auctions functionality that drives cost reductions through competitive bidding, and then seamlessly initiates contracting
- Supplier risk assessment and monitoring capabilities, including integrations with third-party partners like Dun & Bradstreet
- Obligation tracking that ensures compliance with critical KPIs like SLA levels during the entire duration of each contract
- Integrated sell-side contracting such that large customer deals can be structured with all the necessary back-to-back contracting required to ensure profitability and on-time delivery
- Rigorous obligations and SLA extraction and tracking enables shifts to product-as-a-service business models
Icertis’ manufacturing solutions offer unmatched benefits across the entire enterprise. We handle all contract types, have integration adapters for other enterprise systems, and can ensure that companies continue to maximize the value of their contracts long after each one is signed.
Learn More About Icertis Solutions for Manufacturing
Featured Solutions for Managing Manufacturing Contracts
Within the ICM product portfolio, these solutions enable manufacturing companies to drive even more value from their contracts.
ICM Sourcing app
Gain complete visibility into sourcing events, with analysis of bids and proposals.
ICM Collaboration Portal app
Extend access to ICM for more effective collaboration.
ICM Blockchain Framework
Address real-world supply chain challenges with blockchain.