Medius, a leading provider of Accounts Payable automation and spend management solutions, has announced launch of Medius Contracts, a new AI-first contract intelligence solution that turns contracts in any format into structured, connected data and links that information with purchasing and invoicing workflows where negotiated value is ultimately realized.
Standalone contract lifecycle management tools traditionally focused on getting agreements to signature. But much of financial value of contract is realized afterwards, when negotiated prices, terms and obligations translate into actual spend. Research from McKinsey estimates unfulfilled supplier obligations can leak around 2% of spend, equivalent to $40 million annually for organization with $2 billion in spend.
This leakage occurs in gap between agreement and execution: contract terms sit in legal and sourcing workflows, while spend they govern flows through procurement and AP. Checking whether invoices and purchases align with agreement requires teams to manually reconcile information across separate systems and leaves room for error.
Medius Contracts designed to close gap and reduce spend leakage. Built AI-first, solution automatically reads and structures contracts across different formats, extracting key information such as terms, obligations and pricing without manual data entry. That contract intelligence can then be connected with purchase requests, purchase orders and invoices across Medius Suite, giving finance and procurement teams greater visibility into what has been agreed, committed and invoiced.
"Businesses invest significant time into negotiating contracts, but signing the agreement is only the beginning. The value comes from making sure those terms are reflected in what the business actually buys and pays for," said Graeme Chard, Senior Vice President of Product Marketing at Medius. "Medius Contracts leverages AI to bring contract intelligence into the same environment as procurement and AP. That gives finance and procurement teams better visibility from agreement through to transaction, and better information when it comes time to renew and negotiate again."
Medius Contracts brings contract intake and organization, approval workflows, compliance and obligation management, and renewals into one solution. Relationships between agreements, including master service agreements and statements of work, are brought together to provide more complete view of contract estate.
"We like to keep our business leaders focused on strategic objectives. Medius Contracts helps us do that by making our vendor management more efficient," said Stephanie Osborn, Manager, Indirect Procurement & Category Management, Park Place Technologies.
