Manage Supply Chain Disruptions with Contract Technology for Procurement

In the past few years, we’ve seen major supply chain disruptions every year, including Brexit, GDPR, trade wars and now COVID-19. All these unexpected events require companies to search their contracts to analyze exposure and manage any disruptions to their global supply chain. 

To do this, companies need the right contract technology for procurement to get their contracts in a centralized repository first, then analyze the relevant clauses, renegotiate with suppliers, generate new contracts, collect signatures and execute the terms. Docusign Total Search and Intelligent Insights powered by Seal provides advanced contract analytics capabilities that empower an organization to search documents and access all contract data from a single platform, identify risks, find cost-saving opportunities and provide rapid responses to inquiries and sudden changes. It allows procurement professionals to manage suppliers and contracts proactively and become a strategic value driver for the business.

Dealing with the OMGs of force majeure

February 2016 - A 6.4 magnitude earthquake hits Taiwan, the world’s leading producer of semiconductors, integrated circuits and other high-tech products. 

September 2017 - A magnitude 7.1 earthquake shakes Mexico City, killing more than 350 people, damaging important infrastructure and suspending cargo operations at both air and sea ports. 

September 2018 - Earthquake and Tsunami hits Indonesia, blocking roads, closing ports, and impacting export flows of fats, oils and mineral fuels.

September 2019 - Bushfires ravage Australia, resulting in highway closures, production stoppage, power outages as well as reductions in exports of nickel, dairy and coal. Feb 2020 - COVID-19 causes shutdowns worldwide, resulting in transportation restrictions, delays, shutdowns and reductions in production capacity.

Changing times, changing laws

April 2016 - The Paris Agreement is signed by 186 countries, forcing supply chains to find ways to operate with reduced carbon emissions.

June 2016 - The United Kingdom votes to leave the European Union, injecting uncertainty into trading relationships between EU- and UK-based suppliers. 

July 2017 - LIBOR phase out announced, eliminating the default benchmark interest rate for supply chain finance in 2021 and introducing uncertainty in future pricing. 

May 2018 - GDPR enforcement begins, forcing companies to analyze and update agreements to ensure compliance with new data privacy requirements. 

June 2018 - The California Consumer Privacy Act (CCPA) is signed into law, requiring companies to comply with new regulations for California customer data. 

June 2018 - The United States declares 25% tariff on Chinese exports, escalating the trade war between the two countries and impacting other international trade partners.

Man-made disasters need AI-powered solutions

August 2015 - A chemical warehouse explosion in Tianjin, China halts production in industries like electronics, automotive, equipment manufacturing and biotech. 

September 2016 - Yahoo announces 500 million user data breach, raising new questions about cybersecurity threats to vendors worldwide. 

Q1 2019 - Chemical plant explosions in Jiangsu, China cause shutdowns, resulting in a shortage of materials necessary for the chemical, electronic, textile, medical, construction, automobile and aviation industries. 

Today’s most successful businesses operate in a hyperconnected world. At any time, an unexpected event anywhere in the world may impact an agreement and require a company to adjust quickly. Modern AI-powered agreement tools help procurement teams evaluate a broad base of contracts to identify risks, pinpoint opportunities for cost savings and provide rapid responses to sudden changes to the company’s ecosystem.

Docusign’s Smart Solutions for Agile Procurement whitepaper provides an overview of procurement challenges and presents an opportunity for today’s most ambitious teams to get ahead with smarter tools. Sections examine:

  • Three issues modern procurement teams face because of outdated technology
  • Seven ways Intelligent Insights can be used to make daily procurement work more efficient
  • The opportunity for procurement professionals to advance from tactical executors to strategic business partners
  • A look into the future of procurement technology, including some of today’s most innovative solutions

Download Smart Solutions for Agile Procurement to learn more.