Contract intelligence
in action.

Contract intelligence
in action.

How Techem surfaces overspending, enforces contract clauses
automatically, and equips negotiation teams with facts.

The Challenge

Techem is a leading service provider for smart and sustainable buildings. The company's services cover energy management and resource conservation, healthy living and process efficiency in properties.

Techem’s procurement team is managing a large portfolio of supplier and service contracts. These contracts contain critical clauses around pricing indexes, rebates, service level penalties, and delivery obligations. But the sheer complexity and tight time constraints in supply chain execution made it impossible to track the application of every clause and penalty.

Additionally, ERP systems can not reflect every negotiated term, especially for indirect spends, meaning Techem incurred overspend without realizing it.

“Keeping track of every index price, discount scale, and SLA clause used to be a constant risk. qado's AI gives us full transparency and ensures nothing negotiated slips through.”

Klaus Linderich

Head of Procurement and Supplier Quality

“Keeping track of every index price, discount scale, and SLA clause used to be a constant risk. qado's AI gives us full transparency and ensures nothing negotiated slips through.”

Klaus Linderich

Head of Procurement and Supplier Quality

The Solution

At Techem, qado was configured to ingest existing supplier contracts and relevant documents. It automatically extracts key contract terms: index-adjustment clauses, kickbacks, delivery terms, and penalty provisions.

qado’s overspend agents were deployed to identify where commitments in contracts were not being enforced in purchase orders and invoices. Specifically, they:

Overspend

Detected an overspend of 4% due to index adjustment clauses that had not been enforced in one of the pilot categories.

Overspend

Detected an overspend of 4% due to index adjustment clauses that had not been enforced in one of the pilot categories.

Unclaimed penalties

Unclaimed late delivery penalties were identified across 10% of Techem’s analyzed spend, due to limitations in the ERP system’s automated tracking.

Unclaimed penalties

Unclaimed late delivery penalties were identified across 10% of Techem’s analyzed spend, due to limitations in the ERP system’s automated tracking.

Outdated price records

Discovered that ERP systems had outdated price records, that leads to manual rework in correcting purchase orders and supplier interaction.

Outdated price records

Discovered that ERP systems had outdated price records, that leads to manual rework in correcting purchase orders and supplier interaction.

Besides that, qado’s intelligence platform allows buyers to:

Receive alerts

Receive alerts when re-negotiations should be considered and get a report of suitable negotiation levers, including external trends, comparison against other suppliers and supplier history – cutting time for negotiation research by 85%.

Receive alerts

Receive alerts when re-negotiations should be considered and get a report of suitable negotiation levers, including external trends, comparison against other suppliers and supplier history – cutting time for negotiation research by 85%.

Compare terms

Quickly benchmark negotiated contract terms against each other and quotes from new suppliers, saving 80% of time and improving result quality.

Compare terms

Quickly benchmark negotiated contract terms against each other and quotes from new suppliers, saving 80% of time and improving result quality.

Contract knowledge

Search through and understand any contract, including all its amendment and appendices in minutes rather than hours of time trying to find and read PDFs.

Contract knowledge

Search through and understand any contract, including all its amendment and appendices in minutes rather than hours of time trying to find and read PDFs.

Stay compliant

Reduce risk by comparing contracts against templates, other agreements and legal guidelines.

Stay compliant

Reduce risk by comparing contracts against templates, other agreements and legal guidelines.

The Impact

With qado in place, Techem achieved fast-moving, high-impact results:

Visibility

Procurement & Supply Chain staff gained visibility: they can instantly find any contract, understand its critical terms, compare new supplier quotes, and ensure negotiated terms are being respected.

Visibility

Procurement & Supply Chain staff gained visibility: they can instantly find any contract, understand its critical terms, compare new supplier quotes, and ensure negotiated terms are being respected.

Freed capacity

Manual work tracking index adjustments, rebates, and penalties was eliminated, freeing up large amounts of staff time.

Freed capacity

Manual work tracking index adjustments, rebates, and penalties was eliminated, freeing up large amounts of staff time.

Fast turnaround

Overspend and compliance gaps surface in a matter of hours rather than months.

Fast turnaround

Overspend and compliance gaps surface in a matter of hours rather than months.

Reduced leakage

Techem improved enforcement of negotiated contract terms, reducing value leakage and increasing realized savings.

Reduced leakage

Techem improved enforcement of negotiated contract terms, reducing value leakage and increasing realized savings.

Decision making

Strategic decision making and supplier negotiations are now better enabled by facts and data

Decision making

Strategic decision making and supplier negotiations are now better enabled by facts and data

Ready to catch overspending?

Ready to catch overspending?

qado is a company based in Munich, Germany. Our founders have deep experience in procurement and AI from consulting and scale ups. We are backed by top tier VC firms and business angels.

qado is a company based in Munich, Germany. Our founders have deep experience in procurement and AI from consulting and scale ups. We are backed by top tier VC firms and business angels.