Krones AG (ETR:KRN), the German packaging and bottling machine manufacturer, has selected the Icertis Contract Intelligence solution. The solution will integrate into Salesforce and SAP Ariba. It will transform how it leverages contracts across both its sales and procurement operations.
Krones will deploy ICI at its headquarters in Neutraubling. It will help to streamline and unify its contract management across the entire organisation. Krones will also deploy Icertis DiscoverAI and AI Studio applications. Discover AI will help the company to locate and digitize every legacy and third-party contract across the €4.209 billion business (FY 2022).
The company operates more than 24 production sites worldwide and has over 100 subsidiaries. It partners with food and beverage manufacturers, including Coca Cola, PepsiCo and Heineken. It now gains visibility across its contracts for every company it deals with in every country. Now it will be able to identify and act on any differences between relationships. AI Studio will help to deliver teams a single pane of glass and deliver actionable insights across all active contracts.
Melanie Feldmeier, Systems Analyst, Customer Contract Management of Krones, commented, “Every day, millions of glass bottles, cans, and PET containers run through Krones lines. We needed an AI-powered CLM solution to modernize our legacy processes, improve visibility, and process third-party contracts faster while reducing risk.”
“Icertis goes well beyond traditional CLM by offering intelligent clause identification and AI-powered insights to ensure compliance with all required terms and clauses, which significantly reduces liability for our business.”
The Icertis solutions ensure that firms, including Krones can reduce costs, improve compliance, and eliminate risks associated with contracts. The automation within the platform increases efficiency and improves companies. AI Insights ensures that the intent of both parties in the contract is fully realised. It ensures that SLAs are captured and therefore monitored using the other tools in place.
The integration into Salesforce ensures that the flow of the contracting process is unhindered from opportunity to signature. In time, Krones will have a central repository to deliver consistent contract clauses across all subsidiaries and partners. It will further speed up the process and ensure compliance changes are enacted appropriately.
Roman Howe, Vice President, Europe, Icertis, commented, “Contract management is central to enterprise-wide digital transformation, given the role that contracts play across a myriad of critical business operations.
“The power of Icertis Contract Intelligence integrated with SAP Ariba and Salesforce will help Krones achieve greater visibility, efficiency, and insights while optimizing commercial relationships.”
Enterprise Times: What does this mean
This is a big win for Icertis with another SAP customer and shows the relationship between the two companies is still strong. It adds yet another major German Enterprise to the customer base that already includes DATEV, Lufthansa Technik, and Mercedes Benz Group AG.
For Krones, this is the start of its journey with ICI. Hopefully, in time, it will reveal what it has achieved and the scope of the challenge it faced.