AI Agents ensure efficient contract management and performance tracking
Context
Managing accounts payable in the Food & Beverage (F&B) industry is complex, requiring strict coordination with suppliers, compliance with safety and quality standards, and accurate contract execution. For our client, a leading European food manufacturer, outdated contract records, fragmented data, and manual processes disrupted operations, weakened supplier negotiations, and increased financial risks.
Challenge
Our client faced significant challenges in managing supplier contract records across their Document Management System (DMS). The outdated contract records, the fragmented data, and the manual processes led to:
- Inconsistent contract data: pricing, terms, expiration dates were scattered across systems, requiring manual cross-checking;
- Inefficient supplier audits: lack of real-time contract updates made it impossible to track supplier performance effectively;
- Delayed negotiations & cost overruns: without centralized, accurate contract insights procurement teams struggled to optimize supplier agreements.
Solutions
To automate contract audits, improve data accuracy, and optimize supplier management, we deployed AI Agents to transform contract management into a proactive, data-driven process.
Automated data processing
Nordoon AI Agents leveraged Large Language Models LLMs to retrieve and process contract metadata from a variety of sources, including supplier communication, contracts, order confirmations, delivery records, and invoices.
Collaborating AI Agents
In order to map supplier performance onto contract terms, multiple AI Agents worked together to process and compile data related to the supplier’s performance across purchase order maintenance. They identified discrepancies in delivery times, order accuracy and service quality, enabling proactive cost-control and operational optimization.
Seamless real-time updates
Validated contract data was automatically updated within the DMS, eliminating manual input errors and ensuring contract terms were always current and accessible.
Operational efficiency audits
Nordoon AI Agents automated cross-referencing between contracts and operational records. Being able to measure the supplier’s efficiency within the contract terms enabled our client to understand the contract compliance, to clearly distinguish between high and low performance suppliers, and use reliable data to negotiate better contract terms.
Results
Accurate contract audits
Reduced manual contract errors, improved audit efficiency, accelerated decision-making.
High-volume auditing
Automating contract management enabled Procurement teams to easily assess suppliers in terms of contract compliance and operational performance.
Strengthened supplier relations
Improved contract transparency, reducing disputes and fostering more reliable partnerships.
Cost savings
Identified pricing mismatching and operational inefficiencies led to better supplier negotiations and financial control.
