Vedanta Group - Contract Management.pptx

INTERNAL
Ramanathan.
G
SAP Ariba Contract
Management Detailed
Walkthrough

 Introduction
 Key Contract Management
Processes
 Core process
 Indirect spend
 ERP contract
 Solution capabilities
 Initiation
 Process management
 Authoring
 Negotiation
 Approval and signature
 Publication and storage
 Execution and ongoing compliance
Agenda
2
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INTERNAL

Internal and external
collaboration
Collaboration with internal stakeholders
during the contract authoring process and
externally with suppliers through negotiation
to signature and publication. Paperless
workflows create a digital audit trail and
provide complete transparency to everyone
involved in the contracting process.
#1
3
INTERNAL

Simple, role-based user
experience for increased efficiency
Stay on top of deadlines, renewal dates, and
modifications with automated notifications and alerts.
The template and legal clause library helps streamline
contract creation, while stored information such as bids
and negotiated pricing and terms further aid the
process. Dashboards and configurable reports provide
users with pertinent information based on role.
#2
4
INTERNAL

Secure and compliant with corporate
policies and legal mandates
Front-end compliance with internal requisitioning policies
built into the solutions to minimize maverick buying. E-
signature capabilities provide the same level of audit and
regulatory compliance as pen and ink – without the need
for paper.
Tamper-proof master contracts are stored in secure data
centers.
#3
5
INTERNAL

6
INTERNAL
How are your contracts managed today ?
A&P IOG HZL Cairn Energy
Contract Initiation Follow on from RFP > Email EOI > vendor qual > RFQ >
Auctions
Sequential techno –
commercial > Deviation
(Legal & Comm) > Price env
> Auctions
Collaboration (Internal) Email Email
Negotiation &
Signatures
Email Negotiation (post PO) >
capture deviation >
release PO (deviation
captured)
Storage /
Access / Retrieval
SAP SAP
Compliance &
Maintenance
OLA
Uploaded as a Catalog in
SAP Ariba

Key Contract Management Processes

Contract management core process overview
Ariba Network Sign contract
Negotiate Execute
Buyer actions
using SAP Ariba
solutions
Personas
Plan in collaboration with Initiate contract Draft contract Approve and Publish and
store
Negotiate
contract
Execute contract
with
internal stakeholders,
such as procurement,
project leaders, finance,
etc.
with supplier by
direct award
or tender
and send to
supplier
terms and delivery of
goods and/or services
sign contract searchable
contract
ongoing
management and
compliance
Procurement Commodity Contract Contract Legal Procurement Procurement
department manager manager manager department department department
8
INTERNAL

Contract management process for indirect spend
Contract
workspace
Catalog
management
Negotiation Approvals E-signature Contract
amendment
Contract
request
Contract
term
Approvals
Negotiation E-signature Amendment
Ariba Network
Personas
Buyer actions
using SAP Ariba
solutions
9
INTERNAL

Contract management process for ERP contract
Negotiation Approval
Contract
draft
Contract
request
Signature
SAP S/4HANA
or other ERP
Contract
initiation
Contract
workspace
Execution
Publication Repository
Master data and
material master
Outline
agreement
Negotiation E-signature
Award
Contract
manager
Legal
department
Contract
manager
Contract
manager
Commodity
manager
Contract
manager
Commodity
manager
Procurement
department
Procurement
department
Ariba Network
Personas
Buyer actions
using SAP Ariba
solutions
10
INTERNAL

Planning with internal stakeholders in the dashboard
 Dashboard for accessing
significant, actionable, and
relevant user content based on
role
 Data on watched sourcing projects,
event status, announcements, to-do
lists, and document folders
 Ability to create multiple dashboards
that
cover different strategic areas
 Collaboration with legal, finance,
procurement, and sales operations
teams to increase transparency,
control, and efficiency throughout the
entire process
 Management of all types of
agreements, such as
procurement, sales, and internal
contracts
12
INTERNAL

Contract initiation
 Real-time enforcement of
internal requisitioning policies
with flexible compliance
features
 Powerful search and reporting
capabilities to optimize the value
of existing commitments
 Elimination of paper from the
process
 Creation of a complete, digital
audit trail
 Notifications to alert users to key
milestone and deliverable dates
throughout the contracting
process
 Automated workflows
13
INTERNAL

Contract process management
 Framework for the team and
supplier activities involved in
contract creation, negotiation, and
management
 Ability to view and complete specific
activities, tasks, reviews, and
approvals involved with contract
completion and lifecycle
management
 Detailed task description and use of
common documents
 Permissions model that enables all
users to have appropriate access to
work spaces and documents
14
INTERNAL

Contract authoring
 Templates for defining contract
processes and providing guidance on
usage based on specific contract
information such as region,
department, or commodity involved
 Clause library with instructions for
clause usage, structured approval
flow, and free-text search
 Enforcement of required approvals
for use of non-standard language,
allowing for management by
exception
 Version control of all contract
documents,
including attachments and addenda
 Synchronized work environment
using Microsoft Word for editing
documents and tracking revisions
 Communication between team
members 15
INTERNAL

Contract negotiation
 Access to historical contracts an
advantage during renegotiation
phases
 More efficient contract negotiations
for faster contract cycles,
identification of new revenue
opportunities, and lower risk of
revenue loss
 Collaboration features that help
improve the buyer-supplier
relationship to yield more high-value
agreements
 Full audit trail and visibility into all
contract modifications – simple
download, edit, and drag-and-drop
upload of new contract version for
review by all the necessary
stakeholders
 Modification alerts for the use of
any nonstandard agreements and 16
INTERNAL

Contract approval and signature
 Scanning and uploading of ink-
signed document or use of e-
signature
 Elimination of the time and expense
of shipping and signing multiple
contract copies by using e-signature
capability
 Automated, customizable triggers to
keep you informed about process
status
 Achievement of corporate social
responsibility (CSR) goals by
eliminating paper from the process
when using e- signature
 A single click needed to issue e-mails
requesting the necessary signatures
 Unique and secure e-signatures for
each user
 E-signatures fully legal and in line
with audit and regulatory
17
INTERNAL

Contract publication and storage
 Certification of signing and a link to
the signed document sent to every
signer
 Full audit trail of the process, driving
compliance and reducing risks
 All communication encrypted
and documents digitally sealed
 Bids, supplier data, negotiated
prices, and contract terms stored in
a central digital repository
 Tamper-proof master copy of
every contract also stored in an
SAS70- compliant data center
18
INTERNAL

Contract execution and ongoing compliance (1/3)
 Contract compliance document
created, published, and made visible
in the catalog for end users
 POs created against contracts
with orders also matching to
contracts
 Team members able to view and
complete specific activities, tasks,
reviews, and approvals involved with
contract completion and lifecycle
management, including the
generation of e-mail and task
reminders on user dashboards based
on due dates
19
INTERNAL

Create SAP Ariba
procurement
contract
SAP Ariba
Contracts
Create
requisitio
n
Contract
consumptio
n
Guided
Buying
capability
Publish
contract
terms (ACC) to
Guided Buying
Operationalize
procurement
contract
Contract
consumptio
n
Search
guide
d
buying
I need a
new
keyboard
Create
contract
workspace
Create
procuremen
t contract
I need a
contract for
IT
hardware
Activate
contract in
Guided
Buying
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INTERNAL
SAP Ariba Contracts inter-module integration with SAP Ariba Guided
Buying

SAP ERP
SAP S/4HANA
SAP Ariba
Contracts
Create
procuremen
t contract
workspace
Create
procuremen
t Contract
Scheduling
agreemen
t
(LP/LPA)
B
A
Outline
agreemen
t
(MK/WK)
Export
contrac
t
SAP ERP & SAP S/4HANA procurement contracts integration
I need a
contract
for
flanges
Update
with SAP
contract
Id
Approval Update SAP
Ariba with SAP
contract Id
Provide
contract
as
source-of-
supply
Create
purchase
order
Purchase
order
21
INTERNAL

22
INTERNAL
Useful Resources
 Self-Service Videos (YouTube)
 Access and Role Management
 How to create Contract
Projects
 New Features - All Solutions

Vedanta Group - Contract Management.pptx

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