Your organization works hard to sell and serve solutions to your customers, but without the right contract management solution—revenue, renewals and risk fall through the cracks. There is no manual way to keep up with hundreds or thousands of contracts.
Pramata has given companies across industries accurate, organized contract access and insights to help them mitigate risk and stop revenue leaks. Read on to see how.
The Challenge: Overwhelmed Contract Databases
One of our clients, a large medical devices company, faced obstacles managing their royalty contracts. The company collaborates closely with physicians and specialists to create the highest-quality solutions for patients. With royalty relationships that take up to a year to finalize and could last 30 years or longer, their CLM system couldn’t handle the complexity accurately or promptly.
These complex agreements led to a need for a new solution. The company’s CLM system couldn’t provide legal or finance teams with a comprehensive and timely way to track obligations, ensure payment accuracy and mitigate risk.
Organizations of all kinds may experience contract management challenges leading to revenue loss. These issues may look like:
- Time-consuming searches for contract information
- Missed price increases, revenue commitments and other financial terms
- Contracts spread across multiple repositories
- Little visibility into contract renewals
- Contract data is either not tracked or tracked on local hard drives and spreadsheets
- A CLM system with low levels of adoption and a bad user experience
With complex, negotiated contracts, value leakage is an ever-present threat. But, with Pramata’s Repository as a Service (RaaS), you’ll never miss a renewal or leak value in your contracts again.
THE SOLUTION: CONTRACT VISIBILITY
The medical devices company enlisted the help of Pramata to streamline, consolidate, standardize and prioritize disparate royalty contracts. With Pramata, the company was able to have high-level visibility that made value leakage a thing of the past.
With the contract visibility in Pramata, the company could map key terms across all of their contracts to data within their payments systems while finally enjoying complete confidence in the accuracy of the data. Leadership, as a result, could make better-informed decisions and proactively manage royalty relationships for minimal risk and maximum value.
“With Pramata, stuff doesn’t fall through the cracks,” says a Senior Paralegal at the medical devices company. “And because of that, we were able to avoid potential costly litigation.”
Here are just a few ways Pramata RaaS makes that happen:
- Get essential contract information right in CRM. Sales teams can see when customers are renewing, what the terms are and what products they own. With visibility like this, everyone in your organization can work from a single source of truth.
- Capture revenue from signed deals. Understand every price uplift, cost pass-through, and other financial terms that may lead to lost revenue if overlooked. Purchase commitments can be easily tracked and up-charges can be applied if applicable.
- Find opportunities for improving contract terms. Non-standard terms in your contracts can cause potential value leakage or risk. Compare contract terms across customers and legacy acquisitions, and target unfavorable terms for cleanup at the next renewal negotiation.
For our medical devices client, Pramata helped the organization map key terms across all its contracts. After we digitized their documents and understood their terms and conditions, this company eliminated leaking revenue due to over-or underpayments.
Pramata collected and analyzed over 400,000 customer contracts and more than 8 million pieces of data for an American telecom company. This provided a new level of accuracy and uncovered $3M in recurring revenue (ARR).
Ready to reduce risk and capture more revenue with a proven approach to managing your contracts? Sign up for a demo today.