How Contract Management Software can help Rail Transportation?
Rail transportation authorities and professionals, on a daily basis, deal with innumerable types of challenges. In our earlier blog, we discussed the various complexities of railroad contracts and how contract management affects key rail business functions.
According to the need of each department, the authorities may face lack of crew members, price hike on fuel cost, repairing and maintenance of railcars, agreement and compliance with standard regulations. All these hindrances put them under mindboggling pressure to wipe off ineffectiveness that cost the railroad operator a lot of money.
To manage compliance with regulations and industry bodies (like ASLRRA, FRA, APTA, AAR, PTC, etc.), railroads are compelled to switch to a modern digital solution that will streamline and update the Contract Lifecycle Management process (which is inefficient when done manually) for the entire enterprise.
Contract Management Software for Railroads
It empowers the overloaded authorities in the four business areas – legal, procurement, finance/commercial and sales/corporate departments – to manage all the errands related with contract development, negotiation, execution and management including post-execution rights, obligations and reviews.
Let’s see how a modern contract management solution can help key departments of a railroad –
Legal – Legal teams in railroads have to ensure compliance to various regulations, labor unions as well as mandates from industry bodies such as ASLRRA, APTA, FRA etc. For legal heads, general counsels, advisors, a CLM helps to –
- ensure standardization by leveraging a robust clause and template library;
- approve, edit, execute and store all contracts and agreements, both buy-side and sell-side, covering all phases of the process, in one location;
- easily create variations in the workflow, rules, clauses and templates based on regional needs;
- effortlessly track commitments, milestones, expiries, deviations, deliverables and other contractual obligations across every business unit.
Procurement – Rail projects comprise of five major disciplines – civil engineering, signaling equipment, electricity, telecommunication & tracks. As a result, railway procurement teams have to take care of multiple suppliers, car hires, locomotive rentals, raw materials as well as man-power. Sourcing managers, purchasing officers & procurement heads can use a CLM to –
- support supplier checks and related third-party data for key reference, interline settlement, other data;
- monitor the speed and efficiency of the supplier contract process, with a simple dashboard that provides insights on cycle times, deviations, risks and procurement metrics, including expiry, renewal, and pending;
- manage contracts across multiple geographies with comprehensive multilingual support and easily customized variations in workflow.
Finance / Commercial – Railroad executives have to deal a lot with various properties, track ownerships, real-estate leases, complex invoices. A CLM can empower CFOs, finance executives and business managers to –
- uncover opportunities to reduce costs and increase cash flow;
- reduce labor costs by empowering employees to process contracts with greater speed, efficiency and accuracy;
- access detailed risk reports to make informed decisions;
- modify the contract process to adapt to new changing business conditions without incurring the high cost and delays of custom development.
Sales / Corporate – Rail transportation companies have to manage complex commercial arrangements such as rate price management, revenue sharing under Interline Settlement System (ISS) and complex freight invoices. A CLM can help sales and business operations staff to –
- keep deals moving forward without delays by using configurable proposal creation rules and templates, self-service contract wizards and adaptable approval workflows;
- track contract performance, manage risk and obligations with smart, contextual information about each contract using customizable alerts and notifications to help avoid penalties and take advantage of potential rebates or incentives;
- gain efficiencies by using one system to manage any contract: buy-side, sell-side, corporate, NDA, MSA, SOW, employment, MoUs, etc.
How CloudMoyo can help rail transportation with Contract Management?
Using the Icertis Contract management (ICM) platform, we enable rail & transportation companies to lead the digital transformation across procurement, lease management, real estate, legal and sales. Our solutions help railroads transform their commercial foundation ensuring compliance, improving governance, mitigating risk and enhancing user productivity, thereby improving the bottom line. Powered by smart analytics & AI, our Contract Management Center of Excellence allows customers to increase contract velocity and agility, proactively manage entitlements and obligations as well as surface commercial insights and intelligence.
Helping a Class I rail with contract management
In 2017, CloudMoyo helped a class 1 railroad with a contract management solution to manage its real-estate leases by creating a comprehensive store of real-estate inventory by organizing new and legacy agreements in one system. This mega-project handled over 35000 legacy contracts, 120000 documents and 250 inventory listings. The key benefits from this contract management solution were-
- catalog and proactively manage lease contracts,
- automate financial processes (rental payments, price escalation and indexation, variable rent and concessions, settlement of service charges)
- gain insight into costs, yield and occupancy
To know how you can modernize contract management for your railroad, get in touch with us!