Modern passenger and freight transportation companies compete in a heavily regulated business environment and rely on complex partner and customer programs to ensure quality service and loyalty. They also manage complex supply chains to procure the goods and equipment necessary to fulfill their mandate. And contracts underpin this entire industry.
If left unaddressed, these challenges have the potential to lead to dissatisfied customers, costly non-compliance, and higher procurement costs.
In working with some of the world’s largest transportation companies, Icertis has identified several common contracting challenges:
- Fragmented contract management practices make compliance with government regulations difficult, especially in scenarios where multiple jurisdictions may come to bear
- Public-private partnership scenarios carry increased scrutiny into business operations and corporate governance
- Manual workflows and data entry make management of complex interlining agreements, loyalty programs, and other ongoing commercial agreements time-consuming and error-prone
- Purchasing and maintaining equipment like airplanes, locomotives, and ocean-liners require complex supply chains, with purchase terms captured across thousands of contracts
- A lack of integration between contracts and other systems hinders the enforcement of terms that are contingent on market forces—such as the price of fuel
- Legacy contracts dating back decades can be impossible to locate in case of a legal dispute