Manufacturing Industry

Legal requirements make up compliance barriers, including environmental controls, health and safety, and broadly, quality controls. According to Deloitte, %. Noncompliance in manufacturing supply chains today can amount to up to 5-7 % of annual revenue because of penalties and disruption.

These indicate fluctuating nature of supply relationship, which results regular modifications in the manufacturing related agreements. Gartner points out that about 60% of such contracts are modified, at least, one time per year, thereby raising the prospect of contract management blunders.

Supplier reliability and compliance are key objectives of supply chain risk management with regards to planned production. PwC further notes that due-diligence failure during onboarding leads to supply chain disruption risks impacting operational continuity in approximately 20%.

Hence, the Risk Report tool provides timely information on compliance risk measures relating to supplier contracts to ERH&S regulations. This approach reduces fines, corroborates compliance to regulations and shields supply chain activities.

Legalbook through Obligations Mapping and Metadata Extraction makes it easy to track the new changes. Such options can be conveniently modified by legal teams without the hassle of having to navigate through severe administrative risks touching on unauthorized modifications to agreements.

Suppliers Management offers two solutions – Due Diligence and Contract Summary that allow for a deep examination of the supplier agreements and extract fundamental metadata about the contracts, as well as present the primary obligations within the agreement. This assists legal departments in evaluating the trustworthiness of suppliers, new compliance risks and to mitigate supply chain risks.