The Lexagle Difference

Lexagle’s software delivered concrete improvements to the company's contract management system:

• Digitisation of Contract Templates. The company digitised numerous contract templates, which enabled streamlined document creation and management.

• AI Contract Analysis in Manufacturing. The integration of AI-powered contract solutions allowed for more sophisticated contract analysis, identifying key terms and potential compliance issues, which streamlined review processes. This enhanced the company's ability to ensure contract compliance, especially within the complex regulatory environment of the manufacturing industry.

• Reduction in Contract Generation Time. The time taken to generate contracts was significantly reduced. Previously, creating a standard contract could take several days due to manual data entry and multiple revisions. With Lexagle, this process was shortened considerably, demonstrating an overall reduction in the time spent generating contracts.

• Streamlined Approval Processes. The approval process for contracts, which previously involved manual routing and approvals, was streamlined through automation. This resulted in faster processing times and improved efficiency in contract approvals.
• Comprehensive Audit Trails. Lexagle provided full audit trails for all contract-related activities, including approval gathering and counterparty negotiations. This feature ensured that all changes and discussions were recorded on a single platform, enhancing transparency and accountability. The company also benefited from the implementation of automated invoicing for manufacturing, which improved financial tracking and accuracy, ensuring that billing aligned seamlessly with contract terms.

The Objectives

The company aimed to address several key challenges and streamline its contract management processes:

• Standardising Contract Management Processes. Previously, contract templates were decentralised, leading to inefficiencies and inconsistencies; the company sought to centralise them to ensure a consistent format and adherence to guidelines.

• Enhancing Contract Tracking and Oversight. Tracking of contract statuses and changes was manually done in Excel, which was inefficient and error-prone. The company wanted a more streamlined system to provide real-time visibility into the progress of contracts, from initial request to final approval and signing.

• Automating Approval and Signing Processes. The approval process was slow, involving manual checks and often requiring notarisation for finalisation. The company aimed to automate this process, reducing the time required for approvals and increasing the use of e-signatures, especially for international transactions.

• Improving Document Storage and Retrieval. Contracts were stored physically, with expired documents archived by a third party, and digitally scanned. The company planned to migrate to Lexagle for digital storage, improving organisation, accessibility, and compliance with internal and external requirements. This transition to a Philippine digital contract management system was part of a broader effort to modernise operations.

• Ensuring Compliance and Accountability. Maintaining compliance with internal policies and external regulations was a critical concern. The company needed a system that provided comprehensive audit trails, ensuring all contract-related activities were documented and reviewable.

The Business Case

Prior to implementing Lexagle, the company's contract management was characterised by fragmented processes:

• Request: Initiated by Business Units (BU), often lacking a streamlined tracking system, making it difficult to monitor the progress and status of contract requests.

• Template Management: Lack of centralised templates led to inconsistencies. Templates varied across countries and types of contracts, complicating the standardisation process. They were stored individually by officers without a specific person-in-charge, and the latest versions were often not universally accessible.

• Legal Review: Simple reviews typically took 3-6 days, while more complex ones could take up to 14 days. The lack of a standardised review protocol often led to inconsistent timelines.

• Negotiation: Both internal and external negotiations involved extensive back-and-forth communication, which was not centralised. This resulted in varying durations, ranging from a few weeks to several months, depending on the complexity and the parties involved.

• Tracking Changes: Challenges in tracking changes were prevalent, especially with third-party documents. Some documents were in formats like PDF, which did not allow for easy change tracking, and some had track changes disabled. This required manual follow-up to confirm changes.

Approval: Manual checks were conducted by the requestor, involving compliance verification with guidelines and policies. The approval process was slow, often taking several weeks, particularly when notarisation was required, adding to the overall delay.

• Signing: Contracts were signed using wet ink (85%) or e-signatures (15%), depending on jurisdictional requirements. The predominance of wet ink signatures further complicated and delayed the signing process, especially for international transactions.

• Storage and Tracking: Signed documents were stored both physically and digitally, but the system was disjointed. Active documents were kept in physical storage, while expired ones were archived with third-party services. This dual system, combined with manual scanning and digital storage, made tracking and retrieval cumbersome and prone to errors.

• Volume and Workflow: The legal team processed 15-20 legal documents daily, including various contract types. Requests for contract processing were typically made via email, without a centralised tracking system. The workflow for logistics contracts, which used templates 80% of the time, and non-logistics contracts, which used templates 40% of the time, was inefficient. There was no central repository for templates, leading to reliance on individuals for the most current versions.

The Solution

Lexagle’s contract management software offered a comprehensive solution to these challenges:

• Digital Repository. All contracts were digitised and stored in a centralised repository, accessible to authorised personnel. This change greatly improved the ability to track and retrieve contracts, ensuring that all contract templates and versions are up-to-date and standardised across the organisation.

• Automated Workflows. The platform automated many aspects of contract management, including approval processes, notifications, and reminders, providing real-time updates and minimising the risk of errors. This automation helped to streamline operations and ensure that contracts moved efficiently through their lifecycle.

• Integrated E-signatures and Audit Trails. Lexagle provided comprehensive audit trails, enhancing the transparency and accountability of the contract management process. The platform also facilitated the use of e-signatures, streamlining the signing process and significantly reducing the time required for contract finalisation, especially for international transactions

• Enhanced Tracking and Oversight. The software provided real-time visibility into contract progress by centralising all negotiations and communications on one platform. This eliminated the confusion of handling multiple emails and document versions. All updates, changes, and comments were tracked in a single workspace, ensuring that everyone had access to the most current version of the contract and a complete history of negotiations. This feature streamlined processes, reduced delays, and kept all parties informed and aligned.

• Training and Support. Lexagle provided extensive training and support to ensure that all users were comfortable with the new system. This included a "train the trainer" approach, where key personnel were trained to assist others within the organisation.

The Results

• Increased Efficiency and Reduced Administrative Burden: The digital transformation led to a significant reduction in the time required for contract retrieval and processing. This efficiency gain allowed the legal team and other departments to focus more on strategic activities rather than administrative tasks.

• Improved Compliance and Risk Management: With standardised processes and better oversight, the company was able to improve compliance with internal policies and regulatory requirements. The digital system also provided better visibility into contract statuses and deadlines, reducing the risk of non-compliance and missed opportunities.

• Positive Stakeholder Feedback: The transition to Lexagle’s system was well-received across the organisation. Stakeholders noted the ease of use, improved access to information, and overall enhancement in operational efficiency. The software also streamlined the vendor onboarding process, providing a centralised platform for managing vendor contracts, ensuring all compliance and documentation requirements were met efficiently.

Key Takeaways

The implementation of Lexagle’s contract management software marked a significant step forward for the company's legal and administrative operations. The shift from manual, paper-based processes to a fully digital system not only streamlined operations but also provided a more secure and efficient way to manage contracts. This case study highlights the importance of adopting modern, automated solutions in managing complex contract portfolios, especially in highly regulated industries. By embracing digital transformation, the company was able to achieve greater efficiency, compliance, and satisfaction among its stakeholders.