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Review supplier contracts for deviations from standard

Incoming contracts are checked for deviations from the company's standard clauses. Legal assessment and negotiation remain with procurement.

Modelled annual capacity potential of EUR 43,200

Modelled example scenario – not a client reference

Starting point

A procurement department reviews around 600 supplier contracts per year for deviations from internal standard clauses. Employees read each contract and manually flag critical passages.

·600 contracts per year
·90 minutes current review time per contract
·EUR 60 fully loaded cost per productive working hour
·30 minutes remaining review after pre-marking

Modelled potential

Current review covers 900 hours and EUR 54,000 of working capacity per year. At 30 minutes remaining work, 600 hours are released — an annual capacity potential of EUR 36,000. A conservative estimate of EUR 7,200 from reduced rework is added.

Possible solution

The system compares contract clauses with the approved clause library and flags deviations with severity. The buyer reviews the flagged passages and decides on negotiation or acceptance.

Controls

No automatic contract acceptance
Only approved clause library as reference
Legal approval for material deviations
Logging of every review and decision

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