JAGGAER: improving contract management with AI systems

Simon Thompson, Sales Director at JAGGAER, explains how businesses can achieve a better return on investment with AI-powered contract management

What is your company’s main focus for the future? 

Commonly adopted business strategies like improving cost-efficiency, reducing risk, or optimising operational efficiency are limited by manual processes.

Why? 

Processing contracts manually can take a lot of time and, due to human nature, are likely to encounter man-made errors. These could be errors within the contract write-up, which could jeopardise the company’s position within that contract, or important topics of negotiation could be missed.

The average Fortune 1000 company is likely to have around 40,000 active contracts processing at any given time, which will require proposals, reviews, negotiations, and approvals to take place for each contract. Managing these processes manually is no longer an option for global supply chains, as their contract procedures need to move as fast as they do.

Implementing AI into contract management

As artificial intelligence (AI) cements its place in everyday life, it is becoming more popular for its use in contract management. From the initial contact between businesses to signing on the dotted line, AI is soon to become embedded into all procurement processes. 

Managing time efficiency 

The capabilities of AI in procurement are changing daily. While businesses can leverage technology for menial tasks, it can also be utilised for authoring contracts, analysing their success through data analytics and mapping out further contract proposals. AI can scrub through thousands of documents in a matter of seconds and select all of the relevant information required in the final agreement. 

Following the point of signature, eProcurement platforms will analyse the success of the agreement, which can generate time savings of around 30 - 50% per contract, allowing teams to focus on sourcing new suppliers and taking further actions towards their procurement strategies. According to Simon Thompson, Sales Director at JAGGAER, ‘one company working with JAGGAER and Edgeverve saved time equating to over 1.5 full-time employees, allowing them to instead dedicate that human power to more strategic efforts and push the organisation forward’.

For a risk management strategy

It’s important to consider the risks involved in all stages of contract management. Investing in AI provides faster analysis of the language used in a contract and cross-referencing that with similar contracts to predict how successful the contract will be. Thanks to machine learning, the datasets that technology consumes are growing faster than ever as new information can be absorbed instantaneously. 

‘This is where the value of better decision-making becomes a reality. The platform can digest more information about your suppliers and contracts than humans possibly could. It then provides your team with recommendations to minimise your risk more than you could on your own. This drives tangible bottom-line results, with an average of 3-18% risk reduction for those who adopt an AI-driven contract analysis tool’, says Thompson. 

AI has certainly proven its worth in the supply chain industry. To gain more insights into JAGGAER’s procurement and supply chain applications, catch Simon Thompson at Procurement and Supply Chain LIVE! 

 

To sign up to the show, click here.


To find out more about JAGGAER’s contract management solution, click here.

Share

Featured Articles

Diageo CPO Orozco to lead procurement at Kraft-Heinz NA

Diageo CPO Janelle Orozco takes up Chief Procurement Officer role for Heinz-Kraft North America, as food giant drives customer-focused transformation

DHL Express in Heathrow gorilla logistics triumph

DHL Express specialist logistics staff help ship Kiburi the silverback gorilla to Heathrow as part of London Zoo endangered species breeding programme

Global customs staffing issues hitting supply chains - EY

Dan Dreyfus of EY says labour shortages are impacting customs and border agencies, who are integral to the the smooth running of supply chains

Latest China Covid outbreak poses supply chain threat

Supply Chain Risk Management

Automotive suppliers ecosystem set for change - Accenture

Technology

Logistics news round-up from Europe, US & Asia

Logistics