As the retail industry becomes increasingly competitive, procurement teams constantly seek ways to streamline processes and improve efficiency across the contracting lifecycle. NextGen AI-powered CLM solutions enable retail companies to efficiently tackle and manage one of their biggest challenges – spend leakage. By bringing contracts to life through AI-enabled contract analytics, this innovative technology is revolutionizing how retailers manage their procurement process. In this blog post, we will explore varied NextGen-AI use cases in legal for retail companies, and how the technology is enhancing contracting processes, leading to huge cost reductions maximizing profits.

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Spend Leakages in Retail

For retailers, spend leakage refers to the loss of money due to inefficient procurement processes. This can occur in various forms such as missed discounts, incorrect pricing, and unfulfilled contract terms. According to a report by The Hackett Group, the average retail company loses 7% of their annual spend to leakage. For large retail companies, this can amount to millions of dollars in losses each year.

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NextGen AI-powered Contract Analytics in Retail

One of the main reasons for spend leakage is the sheer volume and complexity of contracts that retail companies deal with. From sourcing agreements to vendor contracts and supplier agreements, managing such a large number of contracts manually is a daunting task. This often leads to errors and oversights that result in significant financial losses. This is where generative AI-powered contract analytics comes in.

Generative -AI powered contract analytics can:

• Analyze and interpret vast amounts of data from contracts in seconds

• Identify potential risks and opportunities within contracts

• Ensure adherence to regulatory compliances, policies

• Extract, analyze data to uncover valuable insights across varied types of contracts, agreements, clauses, terms, and so on

• Facilitate cost-savings, maximize efficiency and productivity

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Why GenAI-Contract Analytics

Generative AI –powered contract analytics with its seamless capabilities brings contracts to life. Traditional contract management systems only store data from contracts but fail to provide actionable insights. On the other hand, NextGen AI-powered contract analytics not only interprets data but also generates insights for better decision making. For instance, let's say a retail company has a contract with a supplier for office supplies. Through contract analytics powered by generative AI, they discover that they are missing out on significant discounts due to not meeting minimum order quantities. With this insight, they can consolidate orders and negotiate better terms with their supplier, resulting in cost savings as well as time savings for the company.

NextGen-AI powered contract analytics can:

❖ Flag any discrepancies or deviations from agreed-upon terms in real-time. This allows for proactive resolution before it turns into costly legal disputes or compliance issues.

❖ Identify patterns and trends in contracts. This can help retail companies make informed decisions when negotiating future contracts and designing procurement strategies.

❖ By leveraging data-driven insights, they can secure better pricing and terms, ultimately boosting their bottom line.

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Furthermore, with the rise of e-commerce and online shopping, the retail industry is moving towards a more global market. This means dealing with multiple languages, currencies, and legal systems when it comes to contracts. Generative AI-powered contract analytics can overcome these challenges by accurately translating and analyzing contracts from various sources, ensuring no detail goes unnoticed. In addition to addressing spend leakage, generative AI also offers significant time savings for retail companies. With its ability to analyze contracts at lightning speed, it frees up valuable time for legal teams to focus on more strategic tasks.

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Conclusion

NextGen AI-powered contract analytics has a crucial role to play in the procurement landscape of retail companies. By bringing contracts to life, it not only addresses the issue of spend leakage but also provides valuable insights for smarter decision making. As retail companies continue to face pressure in an ever-evolving market, embracing this technology is essential for staying ahead of the competition. So why wait? Unlock the power of generative AI enabled contract analytics today and take your procurement process to new heights!

If you are looking for a modern NextGen AI-powered CLM solution for your retail company, contact our solution experts. Be ready to leverage the power of Generative AI-Contract Analytics to streamline your retail operations leading to minimize cost and boost ROI