Novelis needed to centralize its understanding of customer relationships and risk as part of a larger initiative to centralize and standardize business operations. Decentralized operations had led to highly variable practices around pricing, terms and liability. Management, external auditors and legal teams found they were unable to answer key questions about revenue recognition, financial risk and legal exposure.
Pramata is the cornerstone of our global contracts management program, and our global contracts management system is key to centralized operations and management.Chris Courts Assistant General Counsel, Novelis
Novelis turned to Pramata to help it get visibility into historical data, and to build processes and playbooks to guide sales negotiations and contract practices going forward. 10 million pieces of data were collected, cleansed and organized into a single, centralized system. For the first time, the Novelis team had a comprehensive understanding of all of it customer relationships and also the factors that tripped revenue recognition, business risk, and compliance flags.
Novelis adds new contracts to the system each day. By the next business day, Pramata has extracted key customer, deal, risk and revenue recognition factors and loaded them into a 80-point data model that maps to Novelis’ practices and methods.
We started by centralizing contracts but quickly came to see the real power of this solution. Pramata helped us realize the end game when we were still at the beginning.Chris Courts Assistant General Counsel, Novelis
Novelis’ legal and sales teams collaborate to ensure now standardized – and far more robust — terms for pricing, volume and liability are present in every customer contract. Or if they’re not, that the excluded or minimized items were part of an informed negotiation that resulted in some other benefit to the company. The global contracts management team creates a legal risk score powered by Pramata data to assess criteria including deal quality, conformity to the playbook and compliance.
We’re amazed every day. What Pramata has allowed us to do, and to get right to the substance of our contracts, is simply unbelievable.Bea Velez Legal Project Manager, Novelis