Take control of your legal spend and know your financial position at all times.
Implementing an electronic invoicing and legal spend management
solution can mean substantial gains in productivity and financial savings.
But how do you measure it? To answer this question DataCert commissioned a third
party consulting organization to analyze and calculate the overall return on
investment of its AIMS solution. This was especially important because we wanted a
practical tool to calculate the savings a corporate legal department could expect
using our technology.
Savings were categorized in two key areas -
operational and strategic. Some of the findings are below:
Operational Savings
- Invoice adjustments lowered attorney fees by as much as 10 percent
- Invoice validation drove overall outside legal spending down approximately 1% - 2% by catching expenses that violated outside counsel guidelines
- 90-day pay cycles shrank to 30 days or less; 60-day payment cycles shrank to 10 days
Strategic Savings
- Prompt payment discounts reported high adoption rates (as high as 80% of the firms accepted the discount terms)
- 5-10% savings by shifting work to the most efficient law firm
- Ability to negotiate better contracts with granular invoice data
- Ability to identify stable "blocks" of legal work and bring it in-house
Cost Savings & ROI
- 70 percent of the respondents reported that they achieved break-even on their investment during the first 12 months of use
- Four interviewees cited returns of 300% to 500% within three years
- Aggressive pursuit of strategic savings pushed the AIMS ROI near 1000% for two interviewees
|
|