ALPLA, a world leader in plastic packaging, has deployed the Icertis Contract Intelligence (ICI) platform. This will advance its procurement, sales, and legal operations by streamlining contracting management across the enterprise.
This is the first deployment of ICI within Austria. The project to modernize its contract management has taken less than a year. ICI will support its operation across 177 sites and 45 countries. This is not the first win in the packaging market. Last year, Icertis announced that Krones, a German packaging and bottling machine manufacturer, had selected its solution.
Interestingly, there is a relationship between the two companies. In 2021, they collaborated on a returnable polyethylene terephthalate (PET) container research project. Could they have compared notes and information about the Icertis platform? It seems likely. Does this mean that Icertis has a good chance of winning other businesses in the packaging sector?
Solving Contract woes at ALPLA
As with many other companies before implementing a contract management solution, the contract process was disconnected. ALPLA was unable to leverage the information within its contracts.
Dr Christian Sparl, Head of Legal, ALPLA, explained, saying, “Before implementing Icertis, ALPLA’s contract processes were disparate, and it was difficult to manage compliance during contract creation and post-signature from a global perspective. We chose Icertis because of the company’s differentiation in the market and ability to provide a sophisticated contract intelligence platform that would automate contract creation while also centralizing data across systems to ensure transparency and compliance after the contracts are signed.”
As it began the transformation journey, ALPLA had clear objectives it wanted to achieve:
- Organization-wide visibility
- Organization-wide collaboration where required around contacts
- Accelerate time to revenue
- Reduce costs
- Improve risk management
- Improve and ensure compliance
ALPLA sees the benefits from Icertis CLM
Now live, ALPLA has realised many of these benefits in a quantifiable way, although it has not published detailed statistics of those improvements.
It decreased the contract cycle time through an integration with an eSignature tool. Depending upon how ALPLA managed the signature of its contracts beforehand, this could have taken days out of the process.
ALPLA was also able to take advantage of the large number of standard contract types that Icertis supports. It standardised its contracting process and automated processes across twelve different contract configurations. Through this automation, these standardised processes reduced manual work and would also have helped ensure that each contract process was delivered consistently.
With the Icertis support of bi-lingual contracts, which includes support for bilingual templates with the Icertis Experience for Word, ALPLA created over 30 bilingual and single-language contract templates. These help standardise contracts, better manage risk and demonstrate compliance. This feature is useful when using bilingual templates; replacing a tagged clause with an alternate clause in one language will automatically replace its secondary clause in the other language with the respective alternate clause.
With a single, centralised cloud platform in place to manage the contracting process, the legal and procurement teams have improved their collaboration and cohesiveness.
Roman Howe, Vice President of Customer Advocacy in Europe for Icertis, commented, “Using Icertis, ALPLA has digitized the entire contracting process, structuring the data in contracts, and connecting this critical business data with operational systems to provide a single source of truth and process automation. With ALPLA’s successful go live, the company can ensure the intent of every contract is correctly memorialized and fully realized across the enterprise to help reduce costs and ultimately increase revenue.”
Enterprise Times: What does this mean?
This is not just a customer win but the successful deployment of its solution at a major enterprise. While a private company, ALPLA is huge. It achieved over €4.7 billion turnover in 2023. It has over 23,300 employees with 196 production facilities, of which about 128 are outsourced (and would require contracts to manage). Its contracting will be complex and varied from suppliers to outsourced manufacturing as well as clients. If Icertis manage to get ALPLA on stage, or to help them with a case study, it will be a very interesting story.