The document discusses the importance of effective contract management and outlines best practices for contract lifecycle management to improve visibility, compliance, and efficiency in procurement organizations. It highlights the role of technology in automating contract processes, thereby maximizing return on investment. Key examples and case studies illustrate the benefits of implementing a structured contract management solution.

1. #AribaLIVE
Unlock True Contract Management and
Maximize Return on Investment
@ariba
Speakers
• Sundar Kamakshisundaram – Ariba, an SAP Company
• Irina Ovsiyevitsj – Ariba, an SAP Company
• Peter White – Ariba, an SAP Company

2. Agenda
• Introduction
• Contract Lifecycle Management Best Practices
• Contract Management – Demo incl. electronic signatures
• Q & A
© 2014 Ariba – an SAP company. All rights reserved.2

3. Poor visibility of
contractual relationships
0 10 20 30 40 50 60 70
Risk management, visibility, and
compliance concerns
are paramount
66%
40%
44%
37%
Top 5 Reasons Cited
“Contract Management
technology provides an
opportunity for procurement
organizations to take contract
maintenance out of the hands
of legal counsel, while
allowing them to focus on
increasing efficiency and
driving cost savings.”
Source: Aberdeen Group,
Procurement Contract Lifecycle Management, January 2012
Pressure to reduce
supply and supplier
risk
Poor visibility into
supplier performance on
contracts
Establish better control
of enterprise spend
Need to improve
compliance
34%
Top 5 Reasons Cited
Contract Lifecycle Management
Top Pressures within Procurement
© 2014 Ariba – an SAP company. All rights reserved.3

4. Ineffective Contract Lifecycle Management
Results in Increased Compliance Risks
© 2014 Ariba – an SAP company. All rights reserved.4

5. Contract Management Automation Lead
to Better Visibility and Compliance
Source: Aberdeen Group, Procurement Contract Lifecycle Management, January 2012
© 2014 Ariba – an SAP company. All rights reserved.5

6. - - - And Drive Superior Procurement
Results and Maximize ROI
Source: Aberdeen Group, Procurement Contract Lifecycle Management, January 2012
© 2014 Ariba – an SAP company. All rights reserved.6

7. The American Red Cross - The Numbers
• 1.3 billion = Sourceable spend
• 85-90% = Spend under Management
• 7,500 Suppliers
• 350 Suppliers Enabled to-Date
• 25 Catalogs are Live
© 2014 Ariba – an SAP company. All rights reserved.7

8. TopSource - Results
• 100% compliance within TopSource
• Over 1,300 contract workspaces
• 11 different processes for different departments, with associated
super users
• Multi-location benefits
• Corporate council mandated the use of Ariba contracts
throughout entire Topco organization
© 2014 Ariba – an SAP company. All rights reserved.8

9. 9Confidential
VALUE OF A CONTRACT MANAGEMENT SOLUTION TO LVSC
Controls Tool to ensure compliance to the contracting process
• Global system of record (SOR) for all LVSC contracts
• Ensures that Legal and Sr. Management approval workflows are followed
• Facilitates the appropriate signature through eSignature capability and
automatic storage of signed document
• Access control that allows users to see contracts related to their areas
of responsibility
• Develop and quantify process improvements

10. 10Confidential
GLOBAL SYSTEM OF RECORD (SOR)
Global System of Record (SOR)
Contract Management system that has:
• Standard processes
• Easy access to contracts details and analytics
• Allows for compliance audits
Legal Entity or
Property
Date of
Deployment
Contracts
2012
Contracts
2013
Contracts
2014
Corporate April 2012 276 444 123
Bethlehem May 2012 64 98 12
Las Vegas June 2012 325 885 116
Marina Bay Sands August 2012 287 1,087 160
Macao June 2013 1 848 403
Yearly Totals 953 3,362 814
Totals 5,129
Contract Data as
of February 27th
Contract Data as
of February 27th

11. 11Confidential
PERCENT OF SPENDS VS. CONTRACTS

12. 12Confidential
REQUIRED APPROVAL WORKFLOWS
• Required Approval Workflows
3 Types of Approvals are used at LVSC:
 Contract Request approval by Department Vice-President
 Legal review of the contract
 Sr. Management approval of tentative contract
- Legal review completion is a predecessor to Sr. Management approval
• Approval routes can be built on many factors such as dollar amount, General
Operations vs. Capital Expense, etc
• Approvals can be completed by email; email can be configured with
document/summary information
• Active Approval report in analytics allows for approval follow-up

13. Determining Contract Management
Priorities
• Repository
 Contract portfolio assessment (active, expired; spend coverage)
 Reporting and visibility needs (for manual compliance as well)
• Authoring
 Streamlining contract creation processes
 Minimizing risk relating to contract language
• Compliance management
 Employee usage of the right contracts
 Automating pricing structure compliance
What is your company’s top priority today?
© 2014 Ariba – an SAP company. All rights reserved.13

14. Contract Management: Typical Adoption Stages
Stage 1:
Central Repository
 Easy to search
 Good access
controls
 Contains header/
structured data and
all documents
 Automated alerts
 Reporting
Stage 2:
Contract Authoring
 Use of clause and
template libraries
 Integration with
Microsoft Word
 and external
collaboration tools/
workflows
 Associated reporting
Stage 3:
Integrated Compliance
 Structured item/
pricing data
 Automated back
end establishment/
call-off
 Usage-based
alerting
 Advanced usage
reporting
© 2014 Ariba – an SAP company. All rights reserved.14

15. Start with Pre-Implementation Steps
• Assemble an experienced team for the long term
• Schedule a kick-off meeting well in advance
 Agree on project scope (locations, categories)
 Decide between implementing “as-is” or re-designing your processes for
best practice
 Launch long lead time activities
• Get the solution up and running early in the process
• Complete initial software training before starting
• Get early agreement on the extent to which you will edit the legal language in use
for the clauses/templates
© 2014 Ariba – an SAP company. All rights reserved.15

16. Agenda
• Introduction
• Contract Lifecycle Management Best Practices
• Contract Management – Demo incl. electronic signatures
• Key Takeaways
• Q & A
© 2014 Ariba – an SAP company. All rights reserved.16

17. #AribaLIVE
Contract Management Best Practices
@ariba
Irina Ovsiyevitsj - Ariba, an SAP Company

18. Agenda
© 2013 Ariba, Inc. All rights reserved.18
• Implementation Considerations:
 Questions to ask on Master Data
 Best practices on Organization Data & User Management
 Best Practices on Supplier Data
• Prior to design:
 Contract Authoring
 Contract Workspace create guidance
© 2014 Ariba – an SAP company. All rights reserved.

19. Questions to ask on Contract Mgmt
• Do you have a contract management process ? Who owns it ? Is it accepted ?
 Who reviews contracts ? When ? Who approves them ?
 How do you manage amendments ?
• Is your contract management process different between regions or
business units ?
• When do you start negotiating on contracts ? Before award or after award ?
And what does negotiating really mean before award ?
• Will you load legacy contracts ? How many ? Who has to deliver this data ?
• Do you have standard contract templates that we can incorporate in the
template ? Are they commodity based ?
• Do we have to integrate Ariba Contract Mgmt with Ariba P2P ?
19 © 2014 Ariba – an SAP company. All rights reserved.

20. Best Practices on Supplier Data
• FIRST! Should suppliers be loaded in batch?
 Not if they are supposed to directly register on the network. Depends on
the registration type chosen.
 Regardless of the registration type, remember that if contracts would
be loaded in batch, at least some supplier organizations would have to
be loaded
• Be aware of the difference between Supplier Organizations and
Supplier Users
• Be aware of Contract / Supplier hierarchies
20 © 2014 Ariba – an SAP company. All rights reserved.

21. Best Practices on Header Fields
Make fields required so that they
can be used for reporting.
Creation of 10 custom fields. Don’t create fields
you will not use.
Think about what fields you will use in multiple
solutions and name them consistently. They can
share a common value list where applicable.
Position the fields logically and user friendly. You
can order them in 2 separate columns.
Consider the
impact of
multi-select
fields on
reporting.
21 © 2014 Ariba – an SAP company. All rights reserved.

22. Best Practices on Workspace Questions
Questions can be a very
effective way to guide the user
through the process.
By asking the right questions and linking
them to conditions you can prepare a
best fit process for the user.
Typical questions for
contracts are
questions on the user
of supplier and/or
custom paper.
If the customer team is not centralized, you
can also create templates per language.
Questions can also be a good alternative
for fields. However, remember that you
cannot report on questions!
22 © 2014 Ariba – an SAP company. All rights reserved.

23. Document Management with Authoring
A large part of the work on contract
authoring is converting legal contracts in
new word documents that are ready to be
used in contract authoring.
It is easier to create the main
agreement, load it in a template and
then push the clauses into the clause
library then the other way around.
The clause library is not mandatory to be
used. You can store Main agreements
perfectly in the templates. The Clause
Library you use when you have many
different templates using the same clauses
or if you require clause approval rules.
Verify that you are
using a compatible
version of MS Word
23 © 2014 Ariba – an SAP company. All rights reserved.

24. Legacy Contract Load
• Time-demanding activity to gather all the information
 Advice to start early on gathering contracts, especially if there are multiple
locations/areas involved
• Provide small sets of data in advance to gather feedback on the
format/content
• Pay attention to special characters for non-English
 Project names can contain special characters, but documents can not.
Renaming/removing in advance will save time
• Make sure that users are not spammed by emails when legacy
contracts are loaded
24 © 2014 Ariba – an SAP company. All rights reserved.

25. Agenda
• Introduction
• Contract Lifecycle Management Best Practices
• Contract Management – Demo incl. electronic signatures
• Key Takeaways
• Q & A
© 2014 Ariba – an SAP company. All rights reserved.25

26. #AribaLIVE
Ariba Contract Management
Demonstration
@ariba
Peter White – Ariba, an SAP Company

27. Ariba Contract Management
27
Dashboard / Monitoring
Authoring / Negotiations
Internal/External Review
Publish Results
Develop Agreement
Clause Library
Repository
© 2014 Ariba – an SAP company. All rights reserved.

28. Thank you
Q
A&
Contact information:
Sundar Kamakshisundaram
Sr. Director
E: sundar.kamak@sap.com
© 2014 Ariba – an SAP company. All rights reserved.28

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© 2014 Ariba – an SAP company. All rights reserved.