We are introducing Digital Contract Management at Daimler
Paper-based intragroup contracts will be a thing of the past for Daimler, thanks to the new fully-digital Contract Management System ‘Contracts for Daimler’ provided by Daimler IP. Covering a wide range of contract-related processes, it makes life easier for everyone setting up contracts within one Daimler entity or between Daimler entities.
Previous paper-based contract processes were slow, prone to errors, and heavily dependent on human resources
Conventional paper-based contract handling was a cumbersome process for all parties involved. Having a contract document signed can take weeks and months as it needs to physically pass through the workflow for approval and manual signature. Courier delivery across countries is costly, further slows down the process and contract copies can get lost on the way. Contracts, whenever manually created, run the risk to be based on outdated templates, hence not reflecting necessary updates of legal wordings and tax clauses. Ultimately, physical contracts are typically stored decentrally in the file cabinets of the respective departments, making any centralized monitoring and reporting impossible.
A solution needed to be implemented quickly, in order to meet the demands of a fast-paced business environment
In June 2018, the project team together with the IT-department set out to establish a Contract Management System for intragroup contracts. After only three months of development, a ‘Minimum Viable Product’ of the system was launched in October 2018. This was made possible, as the system is based on standard functionalities provided by an underlying software platform..p>
With the rollout of Daimler IP’s new Contract Management System, all intragroup contract processes are gradually digitalized
The system is designed as an integrated Contract Management System to supersede all previous paper-based processes for intragroup contracts. Step by step, the processes for contract creation, alignment, signing and storage will be digitalized through the system. With the possibility for system-based conclusion of contracts (‘Click Approval’) available, no more physical signature is required on the contract.
With this, the system will provide for the following benefits:
✓ Faster signing of contracts, no more courier delivery required
✓ Uniform, correct, up-to-date contract templates ensured
✓ Transparent workflow, including role management and representative model
✓ Monitoring and reporting, search function, reminder function when contracts expire