Unlocking $22M in Working Capital Through Enterprise Contract Intelligence

Challenge: Outdated ERPs, Manual Processes

Efforts to extend payment terms often stall due to lack of visibility into what terms were originally negotiated. ERP systems frequently contain outdated or incorrect payment data and reviewing hundreds of supplier contracts manually is time and resource intensive. 

Approach: AI Powers Contract Performance Assessment

Leveraging our proprietary AI-powered Contract Insights platform, we rapidly generated Enterprise Contract Intelligence by extracting and structuring payment term data from more than 900 critical supplier agreements. Our team segmented these contracts by spend category, enabling a more targeted analysis. This allowed us to identify industry-relevant benchmarks—critical given how widely payment norms can vary between categories like packaging, logistics, and professional services.

The tool connected via API to the client’s CLM system, allowing us to parse clause-level metadata at scale and surface actionable insights in just days—without burdening internal teams.

Key Findings

• 50%+ of suppliers were being paid earlier than contract terms required, with payment sent in just under 12 days on average, despite Net 30–60 terms.
• Average negotiated terms were more than 30 days shorter than peer benchmarks, especially within specific spend categories.
• The analysis supported a targeted renegotiation strategy and system updates to ensure payment timing aligned with contractual terms and business goals.

Impact

These actions unlocked $22 million in working capital and drove over $2.8 million in interest savings, without requiring the client to implement any new tools internally.

Ongoing Opportunity

To sustain momentum, the client is now evaluating Spend and Payment Insights, our SaaS platform that offers continuous visibility into supplier terms and payment behavior—creating a closed loop between procurement intent and AP execution.

Streamline Your Most Complex Supplier Spend with PRGX Contract Management

The PRGX Contract Management team is ready to help you gain greater visibility and insight into contract details and address systemic errors, ensuring immediate cash recoveries and long-term cost savings. Just in the past year, PRGX has analyzed $2.3T client spend with $2.3B client revenue across industries and services, yielding 10x average ROI. Chat with our team of experts about your unique goals and or watch a demo to see our solutions in action.