Leading CONSULTING Organization
A leading consultancy organization is often tasked to assist in client contract management initiatives. The time and costs associated with these initiatives often made a successful result impossible.
In order to more effectively serve their clients’ needs, the consultancy wanted to provide a platform that would reduce the time to find, abstract and review contractual documents. Historically, providing their clients with the intelligence needed for them to understand and manage their contract risk was expensive for the client and expensive for the consultancy to provide.
The most difficult aspects around contractual document management today are questions such as:
- How many contracts do you have?
- Where are the contracts located?
- What terms and clauses are in the contracts?
- Which business processes rely on contract metadata to work?
- How do you maintain data governance of the metadata?
The manual nature of their process was the biggest factor driving cost. Therefore, the consulting organization needed an automated process to discover clause language and clause combinations in contractual documents that would give their clients the intelligence needed to find potential revenue as well as cost and expense reduction opportunities.
If they could do this, the organization could reduce the internal resources needed to service their clients and reduce the contract management fees charged to clients, providing increased value and making these client initiatives feasible.
Seal Contract Discovery was implemented to automate processing their client’s contractual documents.
The key results achieved were:
- Created a fully searchable contractual document corpus
- Created an abstract with over 50 pieces of metadata for each contractual document discovered
- Reduced contractual document review time from a couple of hours to a few minutes per document
- Reduced contractual document review costs from several thousand to less than a hundred dollars per document
- Created best practices around contractual document discovery, extraction, and review
By passing this knowledge and process to their clients, they and their clients benefited from a fully searchable repository for future contract intelligence and a lower total processing cost per contract. Once a consulting client discovers and reviews all their contractual information, they are ready for the next step in contractual document management: Proactively seek out revenue and cost reduction opportunities as opposed to waiting for a problem and then reacting to it. Not to mention they will have the ability to onboard third party contracts on an ongoing basis.