Docugami | AI Document Engineering Blog

AI-Based Contract Analysis To Adapt Your Supply Chain Agreements

Written by Docugami | May 11, 2022 at 4:48 PM

Many people took supply chains for granted before the COVID-19 pandemic, but business leaders have long recognized the vital importance of supply chain management in keeping our economy running smoothly.

As shockwaves continue to reverberate through global supply chains, companies of all sizes face urgent pressure to adapt and mitigate supply chain impacts on their revenue and reputations.

Supply Chain Management In A (Mostly) Post-COVID World

Businesses at every step of the supply chain are struggling to maintain their traditional levels of service and value. Part of the problem is that the “old way” of doing things is anchored in an inflexible, labor-intensive system of document handling that don’t fit the new economic realities of today. 

Nowhere is this stubborn roadblock more present – and more frustrating – than in the contracts between suppliers and businesses that constitute the very foundation of the global supply chain. 

Unprecedented Challenges Call For Constant Contract Management

Standardization of contracts helped drive efficiency, but in today’s world rigid contracts are a headache at best and often a liability because their details may not reflect reality for long. Supply chain logistics are changing so rapidly that businesses must constantly update contracts, monitor performance, identify alternative suppliers, and draft change orders to keep business moving and customers satisfied.

The era of ‘set-and-forget’ contracts is long gone, and traditional solutions to contract management like data extraction, PDF splitters, standard contract management software, and even blockchain contract programming have all proven inadequate.

In today’s highly volatile environment, supply chain contract managers require deep insight, enormous flexibility, high efficiency, and strong accountability. Enter Docugami. 

Download your one-page guide to adapting your supply chain's commercial agreements using artificial intelligence.

 

 

AI Contract Management: A Modern Approach To Supply Chain Agreements

Docugami is a multi-faceted AI solution that combines innovative Deep Learning, NLP, Bayesian, Evolutionary, and other AI techniques to review, analyze, and streamline contracts and other documents crucial to business operations. The unique features of our tool allow for a level of flexibility, efficiency, and seamless adaptation in contracts that has never been possible or accessible before now.

Learn More: Business Users Can Be Immediately Productive with AI


Here are a few of the unique benefits Docugami’s advanced AI-based document analysis can offer in streamlining supply chain operations and mitigating disruptions in the face of a rapidly changing global economy and pandemic-related disruptions.

 

Real Time Intelligent Contract Analysis

Docugami, as an AI document engineering platform, makes it much easier to review agreements in depth and in real time, to adapt to near-constant change, and to connect document information with line of business systems. Businesses can now tackle the complexity they experience with documents in their procurement functions through our hassle-free Software-As-A-Service (SaaS) platform. Docugami can recognize variations in groups of contracts and agreements with very little manual effort, eliminating the need for supply chain operations managers to spend hours and hours re-reading all the fine print.

Analyze your contract terms in a fraction of the usual time. Update the analysis, with new variations detected and processed automatically. 

Automated Contract Review 

Contracts, as the paper trail of business promises, are highly valuable and important guideposts and guardrails for organizations. Companies must spend resources and time to deal with the negotiated variations in both first party paper that they develop, as well as client third-party paper contracts, which can be even more variable. Detecting variations normally means manually reviewing each existing and new contract line-by-line to ensure a company’s best interests legally and commercially.

With Docugami, deviations across contracts can be spotted in quick, automated reports. This reduces the cost and time for both internal and legal review dramatically, and the insights can focus managers on what needs to change.

  1. Instantly view variations and deviations across all contracts, at a glance.
  2. Speed up internal review timelines and reduce cost.
  3. Reveal actionable insights to quickly adapt and fix contract issues.

 

 

Efficient Supplier Performance Reporting

The pandemic has forced organizations to put more focus on their supplier terms, beyond pricing and discounts. Vendor management teams need to closely monitor supplier performance against existing contracts and generate dashboards/reports to evaluate suppliers’ performance against their provisions.

Docugami enables organizations to focus on contracting for performance, which helps reduce costs and achieve value beyond the contract’s original scope by balancing risks appropriately between buyers and suppliers, specifying deliverables, timing, performance monitoring, and management processes. Imagine all the well-negotiated metrics and acceptable quality levels as part of supplier agreements that now can be transformed into automatic dashboards for vendor management.

  1. Optimize contracts for performance.
  2. Review variances and re-balance contract risks.
  3. View key performance metrics instantly in automated dashboards.

Connect and Automate Document Information With Your Back-Office Systems

Docugami can help streamline office operations as well, allowing internal systems to more easily  integrate, and make use of existing contract information. Docugami extracts information from a wide variety of document types that are in actual use in each company (MSAs, NDAs, SOWs, Fulfillment, Supplier & Vendor Agreements), without relying on formulaic templates. Docugami can provide results simply in an Excel file or .CSV file, or in more complex files for hierarchical databases, or data-lakes. This enables a wide variety of connections with line of business systems, orchestrating the end-to-end process for how info can be distilled, visualized, transformed, and consumed.  

  1. Process unique Supplier Contracts and non-conforming Fulfillment Services contracts for their essential data.
  2. Export extracted document data in standardized, easily integrated file formats.
  3. Automatically enable data integration from within documents, to line-of-business systems.

Customized, AI-Assisted Contract Authoring

Docugami can speed up the contract drafting process without complicating compliance or sacrificing consistency, by providing suggested clauses and values based on historical insights. These recommended contractual provisions are based on your organization’s own established best practices, as intelligently analyzed by Docugami – not requiring a generic, one-size-fits-all contract template that no one will sign.

  1. Craft new contracts with ease, thanks to Docugami’s AI-assisted recommendations.
  2. Maintain your organization’s legal vocabulary and best practices.
  3. Minimize compliance headaches in the contract drafting process while maintaining flexibility.

Powering user-Friendly Workflow Automation

Companies can easily set up automation workflows based on familiar low-code, no-code and robotic process automation tools, to apply business-defined rules to manage renewals, approvals, reporting, information sharing and routing, collaboration, exports, and integrations.  Digital transformation processes can start from the source, from the content INSIDE documents, automatically.

See how Docugami can transform your supply chain management.

Download your one-page guide to adapting your supply chain's commercial agreements using artificial intelligence.

 

 

Learn how Docugami’s breakthrough AI delivers value on Day One, unlocking critical business information from your documents.