A leading global pharmaceutical company recognized the need for machine learning (ML) capabilities when a new CPO joined the company. The CPO’s experience at multiple Fortune 500 companies gives him deep insights and knowledge needed to help the company with the procurement-related problems they faced for direct and indirect spend.
The CPO recognized his Procurement teams lacked fundamental insight into the contracts governing their supplier relationships. The contracts followed no standard format and did not use consistent wording or terms. It was time to finally find a solution that could work when structuring the data into a common format was impossible.
The global pharmaceutical leader was able to access ElectrifAi’s machine learning technology to extract many key clauses in the contracts, such as termination clauses, auto-renewal clauses, indemnification, and much more.
The machine learning models were made available on Amazon SageMaker, which allowed new contracts to process in minutes whereas one person manually processing would take at least one hour. All the contracts were processed in 4 days, which would have taken 125 days without machine learning.
Within a matter of weeks, the entire backlog of existing contracts was available for point-and-click searching. Changes in terms between versions were now readily available to compare. Enforcing consistent language or presence of terms could finally be automated.
Previously unavailable capabilities were unlocked. Users could now ask complex questions and receive answers in seconds, such as “how many vendors for this product can I terminate for convenience?” The business could now focus on strategically managing their risks and costs, as well as their relationships with key suppliers, rather than spending hours or days reading through contract language.
The global pharmaceutical leader has boosted efficiency through automating their contract management process with machine learning capabilities. Without taking so much time to process contracts, the procurement team is now able to use that time to optimize the supply chain and focus on cutting costs and reducing risks.
Can your company benefit from a more efficient contract management process? ElectrifAi is here to help with deep domain expertise and proven machine learning models that quickly produce real business value. Contact us today for a custom demo!
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