Making waves in LSHC: The role of strategic end-to-end contract management

Addressing adversities in the LSHC arena

The LSHC industry is in the midst of a significant transformation driven by increased consumerism, a shift toward value-based care, and the advent of digital technology. These changes have amplified competition between traditional players and new entrants. Additionally, high interest rates and inflation have escalated the cost of investment capital, impacting product development runways. There’s also a push for more diverse and convenient clinical trials spurred by partnerships with retail pharmacies and recent legislation. Supply chain visibility remains elusive, and an unprecedented staffing shortage is causing longer wait times and raising the risk of medical errors.

The growing role of contract intelligence

Amid this complexity, contract intelligence has gained prominence. LSHC companies and their C-suite advisers are wrestling with supply chain disruptions, regulatory pressures, and internal cost-cutting measures. The need for efficient contract management is paramount and is catalyzing an increased focus on technology investment, data management, digitization of contracts, and attention to post-award phases. Streamlining processes, improving speed to execution, and freeing up in-house attorneys’ time by removing bottlenecks are becoming priorities.

The impact of CLM implementation

Implementing CLM can deliver the following benefits:

• Increased satisfaction among business stakeholders
• Enhanced relationships with internal clients
• Demonstrable improvement in voice-of-customer key performance indicators
• Elevated view of legal department and contracting function

Freeing up attorneys’ time to work on strategic matters

• Intelligent contract triage and delegation to alternative resources
• Self-help facilitation

Reduced risk and improved contract compliance

• Standardized and enhanced contracting process
• Potential reduction in revenue leakage
• Discounts and other financial incentives monitored and realized
• Ongoing template improvement
• Ongoing performance obligations management
• Automated and intelligent data insights

Visibility into where your contracts are and what’s in them

• Real-time management information and reporting that drive business intelligence
• Increased visibility into negotiation patterns

Reduction in contracting cycle time and cost per contract

• Process streamlining through removal of bottlenecks, automation, and speed to execution

Shaping the future of CLM: Integration with Icertis and SAP Ariba

The end-to-end CLM process is set to revolutionize the LSHC industry. By transforming contracting processes into a strategic value driver, the collaboration between Deloitte, Icertis, and SAP is helping prevent or manage procurement delays, revenue leakage, and lack of insight into contractual risk. LSHC enterprises are now equipped to achieve better speed and efficiency across the contract life cycle, improving governance and risk management by streamlining, automating, and transforming their CLM processes. These new capabilities can herald a promising future for the LSHC industry, making it better equipped to navigate its unique challenges and seize growth opportunities.

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