AI Transforms Contract Management in Petrochemicals

A global petrochemical company grappling with decentralized contract management, manual processes, and diverse workforce training needs, implemented an AI-powered Contract Lifecycle Management (CLM) solution. This centralized all contract data, automated workflows, and standardized contract practices, resulting in a centralized repository, streamlined processes, standardized practices, effective data management, and rapid user adoption.

Client:

Headquartered in São Paulo, Brazil, Braskem is one of the world’s largest petrochemical company with operations spanning across various countries. It is the biggest petrochemical company in Latin America and a top manufacturer of resins globally.

The company produces a comprehensive range of products, including polyethylene, polypropylene, and polyvinyl chloride. Guided by a solid commitment to innovation, Braskem strategically invests significant resources in research and development, driving growth and technological breakthroughs.

Problem Statement:

Braskem sought a centralized solution for business-wide contract management. This desire stemmed from several challenges:

◉ Decentralized Legal Function: Braskem lacked a central legal “front door” for contract requests. This scattered approach hindered efficiency and visibility.

◉ Resource Constraints: The company did not have sufficient internal resources to implement self-service contracting, a crucial component for a self-service desk.

◉ Diverse Workforce Training: Training personnel across various regions and technical skillsets on a unified platform presented a significant hurdle.

Results:

☑️ Established a centralized contract repository: Braskem successfully consolidated all contracts into a single, easily accessible location, eliminating the inefficiencies of a scattered system.

☑️ Automated contract generation: Routine contract creation processes was automated, significantly reducing manual tasks and accelerating contract turnaround times.

☑️ Standardized contract practices and workflows: Contract processes were standardized globally across regions, business units, and operational levels, leading to increased efficiency, reduced errors, and improved compliance.

☑️ Implemented effective contract data search and management tools: Braskem gained the ability to efficiently search, filter, and analyze contract data, providing better insights into contractual obligations and enabling informed decision-making.

AI Solution:

Seeking a central system for contract management across its global operations, Braskem implemented ContractPodAi, an AI-powered Contract Lifecycle Management solution.
ContractPodAi offers a cloud-based platform with features like a centralized repository, automated workflows, and data management tools. It leverages machine learning and pre-built integrations with services like IBM Watson and DocuSign.

Among the difficulties faced by Braskem were decentralized contract storage, manual procedures, and the requirement to train a diverse workforce. To address these issues, ContractPodAi’s implementation was divided into phases: Proof of Concept, customization, training, and rollout.

The initial rollout focused on a central repository, followed by integrating automated workflows for contract generation and potential negotiation. Braskem’s careful implementation, encompassing a phased approach, global training, and SAP integration, ensured a smooth transition and user adoption.

The results were impressive: rapid user adoption with an average of 200 requests daily, successful scaling from an initial 800 users (40 legal and 760 business) to 1,050 users within a year, and positive feedback from Braskem’s Legal Manager.

ContractPodAi in Action:

ContractPodAi Cloud—Contract Lifecycle Management Application

References:

1. ContractPodAi Client Case Study: Braskem
2. ContractPodAi Reviews

Industry: Petrochemical
Vendor: ContractPodAi
Client: Braskem

Keywords: AI-powered CLM, Contract Lifecycle Management, Efficiency and Transparency, AI in Procurement