Park National Bank
Terzo helps reduce data mining costs and helps save 5% on PNB’s bottom line
Terzo helped us take the first step on our digital transformation journey, providing us with access to our data quickly through their AI ingestion of over 500 contracts, and making it quick and easy to access that data.
Customer Challenges
Park National Bank, a reputable institution with over a century of history, faced challenges in its procurement and contract management processes:
Missed Renewals and Financial Risk
Despite having a formal procurement team, there was no structured process or central repository for contracts. This led to difficulties in tracking contract dates, renewals, and terms, resulting in missed opportunities and auto-renewals causing financial strain.
Visibility and Transparency Issues
With 98% of contracts being indirect and a diverse portfolio including software, services, and ongoing professional fees, the bank lacked visibility into upcoming contract expirations and opportunities for renegotiation or consolidation. The team would often find out about a renewal for a core product or service within a month or two of the contract end date. This resulted in missed opportunities for strategic negotiations or competitive bidding.
Manual Data Collection
PNB’s procurement manager had to manually sift through hundreds of PDF contracts scattered across various departments and external vendors. This labor-intensive process was time-consuming, taking roughly 15 hours per week, and was prone to errors, impacting overall efficiency.
Customer Journey
To address these challenges, Park National Bank embarked on a transformative journey to streamline its procurement and contract management processes:
Establishing a Vendor Master
The procurement team developed a strategic approach to ensuring all vendors were captured before beginning to associate contracts. They leveraged the list of vendors from the third party risk management group they had recently partnered with. A vendor master was imported into Terzo and then contract uploads and associations began.
Building a Data Foundation
Procurement collaborated closely with the legal team to consolidate all contracts into the Terzo platform. Leveraging Terzo’s AI for the greatest accuracy, this initiative aimed to provide quick and easy access to contract details, including key dates and terms. The procurement team also spent significant time adding additional metadata to contract records, including department and cost center. This foundational work not only facilitated easier searches and data extraction but also enabled proactive contract management strategies.
Automation and Workflow Development
Leveraging Terzo's capabilities, Park National Bank began developing automated workflows for contract renewals and management. Having a tool to leverage is allowing the procurement and legal team to come together and find efficiencies not possible when working solely in email, while also providing added visibility to stakeholders outside of these departments.
Terzo Solutions
Terzo's AI-as-a-Service
Terzo's AI as a service took the AI out of the hands of business stakeholders so they could truly focus on business outcomes. Data extraction is made easier with Terzo's unique model to use technology with humans in the loop to build better accuracy across the board. The technology pulls metadata as simple as start/end date, but as sophisticated as clauses and SLA details
Terzo 360 & Alerts
Terzo's 360 includes dashboards and sophisticated reporting that's powered directly by information coming from AI-as-a-Service efforts. Now, with an accurate reflection of start and end dates, the Park National Bank team can clearly see upcoming renewals and any other spend commitments. Search, sort and report through a slick UI makes it easier to access then download data. Additionally, renewal alerts set up at 30, 60 and 90 days help the team beat auto renewals and process other cycles much further in advance.
Terzo Workflows
Terzo workflows provided a platform to help the team build automation and structure around new processes. Easy creation and editing of workflows and requests provides flexibility and ease of use.
- 90%Contracts managed through Terzo
- 50%Reduction in data mining costs
- 5%Savings on annual renewal spend
Successes
Park National Bank's efforts in digital transformation and process optimization yielded substantial successes:
50% reduction in data mining costs
The time spent on contract extraction and data retrieval reduced significantly, from weeks to mere minutes. This improvement allowed the procurement team to focus more on strategic initiatives rather than administrative tasks, ultimately reducing capital resource costs in this area by 50%.
5% savings on annual renewal spend
By implementing earlier renewals and proactive contract evaluations, the procurement team achieved measurable cost savings. This proactive approach also ensured that all contract renewals were managed effectively, eliminating the risk of financial penalties from missed deadlines across a multi million dollar book of spend.
Increased Compliance and Risk Management:
With over 90% of contracts managed through Terzo, Park National Bank continues to move towards enhanced compliance with regulatory requirements and internal policies. This systematic approach mitigated risks associated with contract oversight and non-compliance.
