AI SummaryBeta
- Background: Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI) faced challenges in managing third-party IT contracts due to a lack of unified global approach.
- Problem: Disparate processes and standards led to missed deadlines, overspending, and scattered contracts across platforms.
- Solution: A special projects manager streamlined contract management with a new global solution, automating processes and ensuring standardization.
- Result: Centralized contracts enabled proactive management, yielding significant savings through earlier negotiations. The solution fostered cohesion across regions and departments, enhancing efficiency.
- Key Takeaways:
- Unified global approach enhances cost efficiency and operational cohesion.
- Centralizing contracts enables strategic negotiations.
- Seamless integration with existing systems ensures smooth workflow.
- Strategic partnerships are crucial for successful implementation.
- Testimonial: The new approach standardized processes, yielded savings, and promoted confidence. Challenges were overcome with exceptional partner support, ensuring smooth progress.
Unlock the power of our AI Assistant in our cutting-edge digital competition cloud.
Join 10,000+ businesses trusting MSB Docs for contract collaboration.
Request A DemoIntroduction
Founded in 1999, Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI) is a wholly owned Indian subsidiary of Honda Motor Company Limited, Japan. The company employs the best-in-class technology to design and offer an expansive portfolio of high-quality, affordable two-wheelers. With innovation and customer centricity at its core, the company has been rapidly expanding its horizons to become the second largest two-wheeler company in India today. Besides spreading the joy of mobility to larger masses, the company’s key focus is on achieving sustainability and embracing digitization. Over the years, HMSI has won over 200 prestigious recognitions for its benchmark products, technology and manufacturing excellence.
Problem
However, when it came to handling third-party IT contracts, Honda lacked a unified global approach. According to the special projects manager, there was a lack of cohesion, with each department operating under different processes and standards. This lack of standardization resulted in missed deadlines, overspending on licenses, and lost opportunities for better terms with vendors. The absence of a centralized or automated process for managing third-party contracts posed significant challenges for Honda. Contracts were scattered across various platforms, and often, the only reminder of an approaching expiration came from vendors themselves.
Solution
With extensive experience in managing large-scale transformation projects, the special projects manager was tasked with streamlining global contract management, starting with the implementation of a new solution. Among the solutions evaluated, one stood out for its versatile capabilities, global applicability, and seamless integration with existing systems. By introducing a global contract management solution, Honda experienced a significant transformation. “We now have a standardized process. People submit their third-party contracts via a form, ensuring uniformity in reports,” said the special projects manager. The procurement process now starts with users inputting essential details into the system, pulling data from software. Contract details, including start and end dates, total costs, and renewal clauses, are captured during the automated workflow. The process is initiated with a click, assigning tasks and ensuring smooth progress through reviews, risk assessments, and signature collection.
Result
With contracts centralized, Honda can proactively manage renewals, terminations, and other deadlines, receiving regular insights into expiring contracts for earlier and more strategic negotiations. “Implementing this solution has yielded significant savings for Honda. We negotiate earlier and secure the same product for less,” said the special projects manager. The benefits of the new contract management strategy extended beyond IT procurement, breaking down silos between regions and departments. “Regardless of location, we now speak the same language when it comes to contracts,” noted the special projects manager. Sales teams leveraged the solution to simplify complex franchise agreements, while smaller teams adopted it to track contracts efficiently. In HR, bonus notifications were streamlined, with relevant data flowing seamlessly from existing systems.
Key Takeaways
- A unified global approach to contract management enhances cost efficiency and operational cohesion.
- Centralizing contracts enables proactive management and strategic negotiations.
- Seamless integration with existing systems ensures smooth workflow and task assignment.
- Strategic partnerships are crucial for successful global implementation.
- The new contract management solution has broad applicability across various departments, breaking down silos and enhancing overall efficiency.
Testimonial
“We now have a standardized process. People submit their third-party contracts via a form, ensuring uniformity in reports,” said the special projects manager. “Implementing this solution has yielded significant savings for Honda. We negotiate earlier and secure the same product for less.” “Regardless of location, we now speak the same language when it comes to contracts,” noted the special projects manager. “The confidence in our new approach continues to grow. With every rollout, more people acknowledge its effectiveness.” “We’ve encountered challenging issues, but the support from our partners has been exceptional. They’ve provided expert solutions, ensuring smooth progress,” concluded the special projects manager.
