The Client is one of the top three office supplies providers in North America. It has a large IT division which is responsible for the maintenance of an extensive IT infrastructure. As with any IT division, it enters into a large number of contractual agreements to acquire hardware and services. The process of negotiating contracts and ensuring that the correct contractual verbiage is entered into the contract is critical to the business. This has both operational and legal implications.
The basic objective of the project was to streamline and standardize the manual and haphazard contract management processes the Client had before the implementation of SAP Contract Lifecycle Management (CLM). This step automated contract negotiation and the generation of contracts. A contract’s lifecycle extends from vendor identification to contract expiration and various stages of this process which had to be automated in CLM.
The project standardized and streamlined the contract management function in the Client’s IT division. This significantly improved the turnaround time for new contract creation and contract renewals. It also greatly reduced the risks associated with erroneous contract verbiage by centralizing and controlling the contract template versions. The CLM process was fully integrated with SAP ECC, ensuring that the purchase order prices were correctly entered and that the entire invoice verification process was streamlined.