Efficiently Managing Contract Variation Requests

In today's dynamic business environment, supply chain planners must adeptly manage contract variation requests. This document outlines a streamlined process for leveraging AI technologies to handle such requests efficiently. From identifying a request to updating procurement, each step ensures seamless integration and minimal disruptions.

Step 1

Identify Contract Variation Requests

The process begins with an RPA reading customer emails to identify contract variation requests. Upon detection, crucial information is extracted from these emails and stored in an LN database. As a result, when supply chain planners log in, they can view all recent change requests from customers through a dedicated workspace widget.

Step 2

Review New Requests

Log in as a supply chain planner to access the workspace. Observe a new contract variation request received in the morning. Click on "Slow Mo" to read the variation details.

Step 3

Assess Request Importance

Determine the significance of the variation request. In this scenario, the customer, City Metro Rail Corporation, has assigned a project involving the installation of an HVAC system at their metro station.

Step 4

Address Increased Capacity Requirements

Recognize the customer's request for a 15% increase in cooling capacity. Opt to leverage the Agentic AI solution to manage this contract variation efficiently.

Step 5

Invoke Agentic AI for Analysis

Access GenAI Assistant to initiate the Agentic AI. Request an assessment of the contract variation to determine its engineering impact. Expect the AI to analyze the product structure, suggest necessary changes, and propose alternative components to accommodate the variation.

Step 6

Review Engineering Impact Report

Receive a comprehensive report detailing the engineering impact. The analysis indicates that to achieve the desired 15% increase in cooling capacity, the current 200-ton compressor must be replaced.

Step 7

Evaluate Alternative Options

Consider two compressor options: 250-ton and 300-ton, along with their supporting components. Choose the 250-ton option and conduct a supply chain impact analysis.

Step 8

Analyze Supplier Options

GenAI Assistant identifies all suppliers for the 250-ton compressor, providing insights into pricing and lead times. Determine that Premier Controls offers the best option.

Step 9

Assess Project Schedule Impact

GenAI Assistant evaluates the project schedule impact with the chosen supplier. A detailed project structure impact assessment report is generated, indicating an expected delivery date of November 16th.

Step 10

Review Timeline Adjustments

The extended lead time results in a delay of 16 days for the activity involving the compressor.

Step 11

Evaluate Overall Project Timeline

The project's overall timeline extends by 16 days. Use navigation tools to access the ERP screen, reviewing the updated project schedule and dates.

Step 12

Confirm Procurement Updates

GenAI Assistant requests confirmation to update the purchase order with the new item, ensuring the procurement of the 250-ton compressor instead of the 200-ton model.

Step 13

Finalize and Communicate Changes

Provide the confirmation to update the purchase order and notify internal stakeholders of the change. Use the navigation link to review the updated purchase order, including the new item, quantity, and delivery date. This comprehensive process illustrates the effective use of Agentic AI in managing contract variation requests, evaluating engineering, supply chain, and project schedule impacts, and updating procurement accordingly.