For healthcare distribution giant McKesson, maintaining the quality of its interactions with providers, manufacturers, and other customers is a priority. But the traditional CLM system that McKesson relied on to manage important contracts and their data wasn’t up to the task. Legal teams found it too rigid and limiting; it lacked reporting capabilities needed to track revenue performance against customer contract commitments.

With Pramata, McKesson’s legal, finance, and sales ops teams can access, at any given time, from multiple systems and departments, all the contract data needed from one single source of truth.

For instance, McKesson can easily check whether a customer’s annual purchase commitment will be met by the end of the year, and take action. Some of the benefits include:

• Recaptured millions of dollars in revenue

• Ensured fulfillment of pricing and rebate commitments to customers

• Delivered valuable insights into non-standard contract language

• Enhanced analysis of contract key terms across customer segments and businesses

• Created a definitive system of record for customer and vendor contract data

CHALLENGES

• Disappointing user experience and low adoption with a traditional CLM

• Couldn’t measure contract commitments against actual performance–no way to match contract data to actual customer activity within ERP tools

• Unreliable keyword search and reporting features to enable rapid analysis of complex agreements

• Complicated, heavily negotiated agreements had many nuanced terms that were difficult to identify and track

SOLUTION BENEFITS

• Rapid contract migration from the legacy system to Pramata, with no data entry by McKesson team

• Centralized all vendor and customer contract and associated data into Pramata’s contract repository

• Matched billing records to contracts for improved performance tracking

• Enabled flexible, reliable search and reporting to find key provisions and obligations

• Enthusiastic user response and wide adoption of the solution