SAP Contract Lifecycle Management

, SAP
12

2010

1.
2.
3.

SAP 2008 / Page 2

Contract Lifecycle Management

SAP 2008 / Page 3

PO

Back End Processes/

Operational Contracts

Procurement

Legal

Financial

SAP 2008 / Page 4

Sales

5
42%

34%

31%
Aberdeen Group,
Contract Lifecycle Management, Views from
Procurement, Sales, Legal and Finance, 2008

23%

19%

10

20

30

40

50

Aberdeen Group, Contract Lifecycle Management, Views from Procurement, Sales, Legal and
Finance, 2008 8
SAP 2009 / 5

CLM

PO

Operational Procurement
Contracts

Sales

Procurement

Financial

SAP 2008 / Page 6

Legal

Effectiveness:
Spend Under
Return
on Assets
Management

Top
Performing
Companies

T
h
e

TT
hh
ee

i
m
a
g
e

ii
mm
aa
gg
ee

c
a
n

cc
aa
nn

Laggards

5
3.6

Top
Performing
Companies

T
h
e
i
m
i
a
m
g
a
e
g
ce
a
n
c
n
a
o
n

Laggards

2.0

Effectiveness:
Spend Under
Return
on Assets
Management

T
h
e

TT
hh
ee

i
m
a
g
e

ii
m
m
aa
gg
ee

c
a
n

cc
aa
nn

Laggards

SAP 2008 / Page 7 0

Top
Performing
Companies

3.5

c
a
n

c
a
n

T
h
e
i
m
i
a
m
g
a
e
g
ce
a
n
c
n
a
o
n

Laggards

2.3

i
m
a
g
e

3.8

Effectiveness:
Spend Under
Return
on Assets
Management

Effectiveness:
Spend Under
Return
on Assets
Management

Top
Performing
Companies

T
h
e

i
m
a
g
e

2.2

T
h
e

T
h
e

T
h
e

i
m
a
g
e

i
m
a
g
e

c
a
n

c
a
n

3.7

2.3

Source: Aberdeen Group,

August 2008

CLM

Rule

These can be delivered by SAP Consultants or

by consulting partners

CLM
Quantified Benefits

24%

12%

Example savings:
CPG company with
$10B revenue

Source: Contract Lifecycle Management and the CFO, Aberdeen Group,

March 2007

11%

50%

Expected savings
= $130M (from
Aberdeen ROI
calculator)

Contract Lifecycle Management

SAP 2008 / Page 10

SAP
SAP SRM

 SAP 2008 / Page 12

CLM :
1

MS word

SAP 2008 / Page 14

CLM

Request Support
For Contract
Development

Create Draft
Agreement from
Template / Library

SAP 2008 / Page 15

Collaborate
Internally

Collaborate with
External Party

Approve and
Sign

Save
Contract
Into
Repository

Apply Access
Controls to
Users / Groups

Search for
Contracts As
Needed

Retrieve / Use
Relevant
Content

Compare
Contract Terms
To Transactions

Take Corrective
Actions as
Needed

Contract Lifecycle Management

SAP 2008 / Page 16

header
item

MS word

MS word

SAP 2008 / Page 19

word

SOX

To-do

excel
.

ERP

Word
Duet
word
duet

header
MS
Header,
supplier, item
data
ERP

portal

Term
agreement
payment terms,

SOX

SOX

Related ERP PO Data

CLM

CPO

CMO/EVP Sales

Spend Analysis
Sourcing
CFO
General Counsel
CIO

Various Stakeholders

Customer Engagement3rd Party Engagement

Proposal / Quotation

Understanding

Contract Lifecycle Management

Procurement

Orders

Invoicing / Payment

Billing / Collection

Delivery on
Commitment
Reconciliation

IT

SAP 2008 / Page 33

: Data Forms

SAP 2008 / Page 34

 SAP 2008 / Page 35

CLM

Finance
CLM

SAP 2008 / Page 36

ERP-MM

Third parties
have access
to selected
information
on the web
Visibility of
the external
partys
contracts
Ability to
collaborate
regarding
contract
performance
and audits

SAP 2008 / Page 37

CLM

Easy to search
Good access
controls
Contains header/
structured data and
all documents
Automated alerts
Reporting

SAP 2008 / Page 38

Use of clause and

template libraries

Structured item/
pricing data

Integration with
MS Word

Automated back
end establishment/
call-off

Internal and external

collaboration tools/
workflows

Usage-based
alerting
Advanced usage
reporting

2a

2c

2b

5a

7a

..

Contract Lifecycle Management

SAP 2008 / Page 40

 SAP 2008 / Page 42

CLM

SAP 2008 / Page 43

SAP

SAP ERP FI

SAP ERP MM

CLM /
E-Sourcing

ERP

CLM

ERP

CLM / E-Sourcing
ERP
E-Sourcing

RFx

ERP

RFQ

ERP
ERP FI
PO
/

SAP 2009 / 44

SAP
RFQ

Contract Lifecycle Management

SAP 2008 / Page 45

CLM
250

sourcing
6

ERP

E-

Aetna

Photo goes here

10

SOX

90%

35%
Ken Levy
Aetna

SAP 2009 / 47

SAP

CLM

DUET

MS Word

Thank you!

SAP
Mikko.shu@sap.com
13918195794

SAP 2008 / Page 49