Novelis, an $11 billion global manufacturing company, recognized a need for centralized contract access and greater visibility into key contract terms and obligations. The company’s legal leadership sought a solution that would eliminate silos of contract management—setting the stage not only for essential compliance and risk management initiatives, but also for ongoing strategic decision support.

• Improved internal controls and compliance

• Improved confidence in revenue recognition process

• Accurate visibility into key contract terms, helping to increase negotiation leverage

• Improved payment terms for increased net working capital

• Centralized access and visibility across all contracts

CHALLENGES

• Decentralized and non-standardized approach to customer and supplier contracts

• No central visibility into contractual obligations and pricing

• Contract silos negatively affected deal negotiations and created unmanaged potential risk

• Fragmented, inconsistent legal review of sales and procurement agreements

SOLUTION BENEFITS

• Centralized all supplier and customer contracts from all four global regions into a single contract repository

• Identified key contractual terms, obligations, and dates and extracted hundreds of pieces of data from each contract

• Normalized key legal and finance provisions and applied scoring algorithms to perform apples-to-apples risk analysis across the company’s relationships

• Improved legal and finance team collaboration ensures consistent, standardized terms for pricing, volume and liability

• Access to clean, accurate data strengthens internal controls and secures regional office compliance

• Increased negotiation leverage for commercial teams results in more profitable relationships

• Accelerated migration from GAAP to IFRS accounting principles, and laid long-term framework for revenue recognition compliance and flexibility