Case Study: Improving Contract Routing for Faster Legal Approvals

Spotlight

A mid-sized logistics company managing regional and international freight operations was facing issues in contract routing across its vendor, partner, and customer networks. Their operational efficiency depended heavily on timely approvals, accurate documentation, and visibility across departments. Despite having a digital contract management system in place, the routing of contracts for review and approval remained a weak point, often causing costly delays. Contract routing a feature they already had access to prove to be the key in resolving these pain points and building a more reliable operational flow.

Highlights

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Faster Approval Time

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Fewer Errors and Greater Accuracy

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Drop in Status Inquiries

Customer’s Speak

Mike Reynolds

Legal Operations Manager

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Managing contracts manually led to missed deadlines, compliance risks, and inefficiencies. With SharePoint Contract Management, automation streamlined workflows, reduced manual effort, and ensured compliance. Now, we focus more on clients instead of paperwork.

Challenges Faced Before Implementing CLM 365

Before the contract routing feature was fully adopted, the logistics company dealt with several recurring issues in their contract review and approval process. These challenges slowed down business operations, introduced risks, and made internal collaboration more difficult.

Inconsistent Routing Paths
One of the major challenges was the lack of a standard process for routing contracts. The approval path often depended on who initiated the contract, which meant the steps varied each time. Without a consistent route, team members were unsure of the proper flow. This caused delays and confusion as people tried to figure out who needed to act next.

Delays in Approvals
Many contracts remained in email inboxes, awaiting manual forwarding for the next stage of review. Since there was no automated alert or sequence, stakeholders were often unaware when it was their turn to review or approve. As a result, some approvals took much longer than expected, affecting project timelines and slowing down decision-making.

Missed Compliance Reviews
Another serious concern was that legal or regulatory checks were sometimes overlooked. Because contract routing was not automated or enforced, contracts occasionally moved ahead without being reviewed by the necessary compliance teams. This increased the risk of audit findings and contractual issues later.

Limited Visibility Across Departments
There was no centralized location for tracking contract progress, so teams often turned to emails or calls to get status updates. This approach made it harder to stay aligned and sometimes resulted in delays. With improved visibility, teams would be better equipped to manage timelines and maintain smoother coordination.

Version Tracking Challenges
When contracts were shared manually, different versions of the same document were often circulated across teams. It was not always clear which version was the most up to date, and in a few cases, incorrect versions were reviewed or signed. This led to additional effort from legal and operational teams to correct mistakes and maintain document accuracy.

How We Solved It – The Solution

The contract routing feature was already available in the company’s system, but it had not been properly aligned with their internal approval structure. Here is how the feature improved the overall workflow.

Routing Paths Based on Business Rules
We configured routing rules based on specific criteria such as contract type, value, and department. This meant that each contract automatically followed a predefined path, moving to the correct reviewers without manual forwarding or confusion.

Sequential Routing with Assigned Approvers
Instead of sending contracts to multiple people at once, routing was organized into clear sequences. Each contract moved from one designated approver to the next, with routing conditions controlling the flow. This helped maintain order and made responsibilities clearer.

Embedded Compliance Routing Steps
We included mandatory legal and compliance steps directly into the contract routing structure. These checkpoints were built into the workflow logic, so a contract could not skip required reviews or jump ahead in the process. This reduced audit risks and reinforced internal policy.

Real-Time Routing Visibility
The contract routing feature provided real-time visibility into where each contract was in its approval journey. Stakeholders could see whose action was pending and what step came next, all without having to reach out manually. This improved coordination and reduced delays caused by uncertainty.

Centralized Routing to Maintain Version
Since contracts were routed within a single, structured workflow, there was no need to send copies over email. Each stakeholder accessed the same version as it moved through the routing process, which eliminated confusion caused by multiple drafts being shared or reviewed simultaneously.

Results & Business Impact

After fully adopting and aligning the contract routing feature with their internal processes, the logistics company experienced noticeable improvements within the first quarter. The changes brought clarity, consistency, and momentum to their contract workflows leading to strong operational results.

Approval Time Improved by 58%
Contract approval durations dropped from an average of 12 days to just 5 days. This process accelerated turnaround facilitated timely project initiation and enhanced vendor relations by minimizing contract approval lags.

Accuracy Improved and Errors Reduced by 43%
By guiding each contract through the correct review path, the company saw a sharp decline in errors related to missed approvals, outdated versions, or skipped legal checks. This resulted in fewer revisions and stronger compliance.

Reducing Inquiries by 76%
With real-time routing visibility available to all stakeholders, the number of internal emails and calls asking about contract status dropped significantly. Teams could easily track progress and focus more on delivery than follow-ups.