Contract Compliance

Eliminating Contract Revenue Leakage

Tracking customer contract performance is a major source of value for life science manufacturers. Customers should be monitored against their committed purchase levels, but in a recent survey, only 62% of manufacturers checked contracts for compliance. Companies do not effectively track compliance because contract performance information can be difficult to obtain — resulting in a significant source of revenue leakage.

Model N Contract Compliance

Model N Contract Compliance automates setting up, tracking, and reporting on customer contract commitments. It assesses compliance continuously and sends non-compliance alerts in advance, leaving enough time to ensure that appropriate action can be taken. The Model N Contract Compliance application eliminates costly and time-consuming manual tracking and analysis. It can maximize contract revenue by quickly recognizing customers who are not meeting agreed-upon commitments. Use of Model N Contract Compliance also facilitates better pricing strategy and decision-making for future contracts, based on an understanding of historical customer compliance data.

Automated Performance Management

When a customer commits to a contract, Model N Contract Compliance automatically begins tracking compliance throughout the life of the contract.

Model N Contract Compliance uses incoming sales and volume data to monitor performance at multiple levels. For example, it provides a view across all commitments for a particular customer, allowing analysts to understand the severity of non-compliance. It also provides a view across all commitments on a particular contract, consolidated commitments for each business unit across all contracts, and an individual analysis in the actual units customers committed to.

In each case, the system provides current percent compliance and forecasts "revenue at risk" — the projected revenue shortfall at the end of the review period. Individual customers can be tagged with a compliance status, which can be used like a credit rating in other Model N applications. To assist compliance managers, Model N Contract Compliance also makes use of a flexible reporting system that provides customized compliance analysis.

Contract Compliance at a Glance