Case Study: How Custom Contracts Simplified Manufacturing Complex Deals Spotlight

Spotlight

Our client is a well-established manufacturing company, with decades of experience in the industry. However, as the company continued to grow, so did the complexity of their contracts. Many deals required highly customized terms to meet the varying needs of clients in different industries. From unique project specifications to different legal and regulatory requirements, crafting individual contracts for each client became a daunting task. Prior to implementing a custom contracts, the company struggled with several challenges related to the communication of contract terms.

Highlights

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Improvement in Contract-to-Client Alignment

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Reduction in Post-Signing Adjustments

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Boost in Client Satisfaction with Onboarding

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 adopting a tailored custom contracts, the manufacturing company encountered several operational and communication challenges that hindered their ability to manage complex, client-specific contracts efficiently.

1. Complexity of Client Requirements

Each manufacturing deal often involved different specifications for the client, making it extremely difficult to create standard contracts that would be applicable across the board. This complexity led to delays and misunderstandings during the contract negotiation process, which impacted the overall speed of business operations.

2. Inefficient Contract Creation Process

The company previously relied on traditional methods for drafting contracts, which involved manual data entry and repetitive back-and-forth communication. The lack of custom contracts and a centralized system led to inefficiencies, with contracts taking too long to draft and revise. Furthermore, each revision required manual adjustments, increasing the risk of human errors and miscommunication between teams.

3. Difficulty customizing terms per deal:

Manufacturing agreements vary widely depending on the product type, volume, delivery location, payment milestones, and even client-specific compliance needs. The company knew that a standard contract could not cover every deal, but custom contracts for each one was turning into a tedious task.

4. Risk of Non-Compliance

The manufacturing industry, especially in sectors like energy and construction, is heavily regulated. Each client project required the contract to comply with different industry standards, laws, and safety regulations. Ensuring that these compliance requirements were met in every deal was becoming increasingly complex. Any oversight could result in significant legal risks, which could tarnish the company’s reputation and lead to costly penalties.

5. Inconsistent contract formats
Each team member had their own way of handling contracts, often saving templates on their local drives or copying from previous deals. Depending on who was managing the client, the format, structure, and even the tone of the contract would change. While this might seem like a small issue at first, it led to serious inconsistencies over time. Some contracts missed critical clauses like penalty terms or warranty responsibilities, while others included outdated policies that were no longer valid.

How We Solved It – The Solution

The custom contracts was made to be flexible and easily adaptable to the various industries the company serves. Below are the keyways the system helped resolve the issues:

1. Tailored Contracts for Every Deal

The key feature of the solution was the ability to create highly customizable contract templates. These templates could be adjusted based on the specific needs of each client, such as unique product specifications, payment terms, and project timelines. This customization allowed the company to tailor each contract to the specific requirements of the client without having to start from scratch for every deal. This flexibility eliminated the need for excessive manual editing and reduced the risk of errors.

2. Automation of Contract Creation

By automating the contract creation process, the company drastically reduced the amount of time spent on drafting and revising contracts. Pre-populated fields, dynamic templates, and standardized clauses enabled the legal team to generate contracts quickly and efficiently. Automation also ensured that the correct terms were applied to each contract, cutting down on human errors and speeding up the entire process.

3. Centralized Document Storage and Tracking

One of the most important features of the custom contracts was the ability to store all contracts in a centralized, digital repository. This allowed the company to easily access any contract and track its revisions, providing full visibility into the status of each agreement. The system maintained an audit trail of all changes made, making it easy to monitor progress and communicate effectively with clients and internal teams.

4. Clause library for easy customization:

To reduce the friction in tailoring contracts for each manufacturing deal, we introduced a pre-approved clause library. This library acted like a smart toolbox organized by categories such as payment terms, delivery exceptions, exit clauses, warranties, and compliance requirements. Instead of rewriting terms from scratch or checking through old files, the team could now pick from a list of legally vetted clauses that had already been approved by their legal department.

5. Real-Time Contract Visibility

The system provided real-time visibility into the status of all contracts. The team could easily track the progress of each contract, from draft to final signature. Automated notifications alerted stakeholders of any action required, ensuring that no deadlines were missed. This real-time visibility improved coordination across teams and helped expedite the negotiation and approval process.

Results & Business Impact

After the successful implementation of the custom contract solution, the manufacturing company experienced measurable improvements in efficiency, accuracy, and overall business performance. Below are the quantified results.

70% Improvement in Contract-to-Client Alignment
With the help of custom contracts and a clause library, the team was able to accurately reflect each client’s operational requirements from milestone-based payments to industry-specific warranties. This led to contracts that truly represented what both sides had discussed, reducing misunderstandings and reinforcing trust right from the start.
55% Reduction in Post-Signing Adjustments
Before implementing custom contracts, it was common for the team to revisit agreements after they had been signed either to clarify vague terms or to amend overlooked details. These afterthoughts often created friction and delayed project kick-offs. Now, with the ability to build each contract around the exact needs of the deal, the number of post-signing changes dropped significantly. Most contracts were complete and correct the first time.
87% Boost in Client Satisfaction with Onboarding
Clients noticed the difference. Many expressed appreciation for how the contract process felt smoother, more relevant, and more respectful of their internal policies. Instead of pushing back on generic language, they were met with clauses that reflected their specific concerns such as custom inspection rules, shipping responsibilities, or