Procurement Case Study
Clarative can enable a sizable reduction in wasted category spend for medium and large E-Commerce companies.
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Challenge
Procurement teams often have to manage thousands of supplier relationships, each with unique nuance and associated documents. Understanding risks, terms, and contractual nuance, and benefits at the portfolio level today is an impossible task for these resource-constrained teams.
Solution
Clarative provides a comprehensive Contract Analytics Solution for Procurement and Vendor Management teams. Teams can understand a vendor relationship at a glance, analyze compliance or contract risks across the entire portfolio, and have AI extract key insights necessary for effective renegotiation.
Visualizing Vendor 360
Clarative assists with vendor renegotiations by providing a complete 360 view on top of all vendor-related documents, contracts, and historical information.
Contract Analysis
Clarative analyzes the portfolio contracts for deviations from standard contract terms and clauses.
Vendor Tracking
Clarative can track and flag contracts nearing expiration. This proactive approach allows procurement teams to initiate renegotiations well in advance, resulting in more favorable terms. Clarative can further help prepare for renegotiation by generating vendor relationship and market reports.
Automating Report Generation
Clarative automates the generation of category spend reports, reducing manual effort by 75% and enabling real-time decision-making. This automation can highlight opportunities for consolidation, diversification, and risk management.
Analyzing Discount & Rebate Utilization
Clarative extracts data on various discounts and rebates across all vendors. This analysis often reveals that only 50-70% of available freight rebates were being utilized, and early pay discounts were often missed due to payment delays. By addressing these issues, companies often save millions.
The Impact
Customers using Clarative to manage their category relationships see several percentage points in reduced spend and greater visibility in the negotiation lifecycle.
