Even though Accelerate 2017 has come and gone, some of its most important lessons are just starting to sink in. One lesson is that contract management for the entire enterprise is now a best practice, according to panelists from three industry-leading companies.
The Advantages of a Single Contract Management Platform
At Salesforce, the company was already using Apttus Contract Management for sell-side contracts when it selected Apttus for buy-side contracting. This decision was made easier because the solution had already passed security review and many people, particularly the legal team, were already trained to use Apttus. “For us it was one single thread from the sales contracts to implementing it for the buy-side,” said Linda Chuan, Senior Director of Global Strategic Sourcing at Salesforce. Having a common platform for all contracting led to nearly immediate full adoption by the legal and procurement teams.
Benefits of Contract Management at Huntsman
Using a common platform also had an impact at Huntsman, according to Divisional Counsel Andrea Wykman. When negotiating with a supplier in one country, Huntsman attorneys could see all agreements that the company has globally with the supplier—and seek the same terms used in existing agreements. “The lawyers have access to the entire system, both buy-side and sell-side,” Andrea said. “We had immediate visibility to other contracts that we’ve done with all of our vendors and customers across the world. The legal teams managed to leverage the information we had all within one system.”
Joining Buy-side and Sell-side Contracts at Workday
Sylvia McCorriston, Legal Operations Analyst at Workday, noted that a central contract management system helped her company’s fast growth. Starting with sell-side contracts and adding buy-side later, Workday benefits from the control that Apttus Contract Management provides. “We have those controls in place knowing which contract went out for signature, and that it was an authorized contract because it was generated from the system, so it had the terms it needed to,” Sylvia noted.
Additional Benefits of Contract Management
These companies also noted additional benefits including faster and more complete reporting to drive efficiency. “On the CLM maturity model, the holy grail is taking that data and being able to do something tangible with it to drive your business—drive revenue or reduce cost,” declared Peter Toundaian, Chief Operating Officer at Apttus partner Mainspring Consulting Group. These companies have found such benefits.
For Salesforce, Apttus Contract Management had an ROI within 6 months. Workday has reduced cost compared to the alternative. As Sylvia said: “I can’t imagine (Workday) trying to run a legal department without having a contract system; I’m sure we’d be staffed a lot heavier if we didn’t have the system in place.” At Huntsman, the driving need was to gain a functional CLM because the “existing system didn’t work,” Andrea said. After replacing the old system with Apttus, “it’s worked out pretty well so far.”
Contract management isn’t just for isolated sales, procurement, HR, legal and other teams anymore. It’s now a company-wide process, with benefits for the entire enterprise. Are you ready to jump in?