What was the challenge?
A Fortune 50 global insurer was undergoing an organisation wide transformation programme. The client had identified a number of cost savings initiatives with automation of their commercial contracting estate as the primary focus. The goal was to reduce headcount, in a sustainable way, to contribute to the group’s overall cost saving programme. The client asked PwC to support in identifying and realising viable cost savings, leveraging existing PwC Centres of Excellence, whilst enabling the organisation to become self sufficient with the technology and the process to enable automation.
What did we do?
Working with the client's senior leadership team we were able to identify organisational opportunities and best fit contracting templates to prove the concept of automation of the commercial contracting estate and in doing so we enabled the client to deliver their cost take out target without compromising on service delivery.
How did we do it?
To achieve contract automation, we mapped the “as-is” and “to-be” processes for a specific product line’s contract templates, including treatment policies defined by risk bandings. We configured the selected technology platform to enable the risk banded triage of contract requests and document creation. In addition, we concurrently upskilled the organisation’s internal resources to be self sufficient in order to maintain and further roll out contract automation.
What were the outcomes?
The investment delivered indicative initial savings of 11.7% of addressable baseline cost within the priority areas for legal external spend. Going forward, the client now has a team of fully upskilled specialists to deliver further cost avoidance as the global commercial contracting demands of the business continue to grow.