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How Luminance is working with Koch to deliver AI-powered automation

As the second largest privately held company in the United States, Koch Industries is a multinational conglomerate with over 180,000 employees worldwide. Committed to empowering its employees with cutting-edge technology, Koch sought a next-generation technology that would transform the way different business units interact with their legal department. We caught up with Jaeger Glucina, Chief of Staff and MD at Luminance, to find out more about this project and its key achievements so far. Here’s what she had to say…

Can you give us some background on what led Koch to explore the use of legal AI?

Koch Industries is the second largest privately-held business in the US, with interests in a wide range of industrial processes and professional services, from oil refining to cloud computing. In that environment, even their 300-person legal team was a stretched resource, with document processing, contract generation, and query handling sapping time from higher-value legal work like negotiations, assessing potential acquisition targets, and identifying new revenue opportunities.

Any business leader will tell you that contracts form the heart of any business. They define the pivotal relationship a business has with its suppliers, employees and customers. For a global enterprise like Koch, this often means hundreds of contracts being reviewed or negotiated at any one moment. Though these contracts – NDAs and employment agreements to name a couple – are often highly standardised, they must all be reviewed and signed off since even small errors could have major business implications.

After trialling several legal technologies to support the team, Koch chose to adopt Luminance in a large-scale roll-out of legal AI across the enterprise.

What was the implementation like, and how did you approach the change management process?

The fact that Luminance’s AI is deployed instantly via the cloud meant that Koch were up and running within 48 hours. From there, the first key step was to introduce Luminance’s contract generation functionality, which enables legal teams to set up contract templates that non-legal employees can populate through a simple Q&A-style interface. This way, colleagues in HR, Sales or Procurement can generate consistent and compliant documents on demand with only light-touch legal oversight.

Once Koch’s sales and procurement teams were comfortable generating their own agreements with customers and suppliers, we streamlined negotiation processes using Luminance’s AI-powered Traffic Light Analysis functionality. A bit like a supercharged spellcheck, Luminance produces a colour coded analysis according to Koch’s internal standards, highlighting areas of risk or unacceptability in contracts and suggesting alternative wording. In doing so, the AI reduced Koch’s review time by 50%. Even more importantly, it offers rationale for its suggestions, uplifting users’ knowledge and insight across business units. If personnel were to leave the company, this learning is then retained by the AI, centralising institutional knowledge within Luminance. 

How has legal AI changed the employee experience in different areas of the business?

For non-legal employees, contracts have obviously become a more self-serve process, but the platform has also made Legal more transparent and accessible to the wider business. That’s because there’s now a clear resource which explains changes and requirements, and also because Luminance’s ticketing system makes interacting with the legal team easier when queries do need to be raised directly.

More broadly, the technology has helped to save time and drive efficiencies across Koch’s business. For example, their Sales team no longer has to wait days for an NDA to be approved and sent off. With Luminance, turnaround time is reduced dramatically, speeding up the commercial process. This is a win-win for the legal team because they no longer have to spend time reviewing 20 versions of near identical NDAs and can instead focus on executing strategic work for the organisation.

Furthermore, Luminance is key for effective supply chain management. By creating a centralised repository with Luminance, GCs have complete oversight across Koch’s contractual obligations, empowering quick decision making and the ability to find answers immediately to urgent legal questions.

Does Koch now have future integration and implementation plans for AI technology?

Even when first assessing legal technology options, a big priority for Koch was ensuring that the solution enabled the whole business to work better, rather than just introducing a discrete tool that only some lawyers interact with. The business has already found applications for Luminance beyond its immediate role in the contract creation, negotiation, and review process, using it to support the analysis of almost any enterprise data.

In particular, teams have been applying the platform’s ability to read and review documents in order to draw deeper, more meaningful insight from ESG surveys. It has also had a big impact in assessing Form I-9 submissions, ensuring compliance with US right-to-work legislation. For a 180,000-person strong workforce, these are resource-intensive tasks where AI makes a real difference.

Ultimately, we see usage growing over time as Koch seeks to facilitate data-driven commercial decision-making right across the business, supporting employees and revenue streams with more holistic information.

How to easily master logistical challenges in the food and chemical industry

Different kind of freight brings different kind of logistical challenges and aspects to be taken in consideration. But they all have one thing in common:  the need for reliability.

Logistics of fast-mover shipments such as fruit and vegetables require maximum punctuality and professionalism. The suppliers must also respond flexibly to the actions of businesses and sometimes transport “just” a few pallets rather than full truck loads. On top of this, the customer wants to be able to track his goods online at all times. Also, the chemical industry needs to reach its customers in the desired time and quality regarding a specific sensitivity to its special products. All in all, transport challenges to cope with in everyday business.

We talked to Germans Barri, fresh food specialist from Spain und German’s chemical products manufacturer MC-Bauchemie how they master their different challenges in transportation….

Challenge #1: High fluctuations in order volumes and order cycles

The biggest challenge for the business of fruit and vegetables provider Germans Barri is the variation of order volumes and cycles of its customers. Aside from exporting products to all European countries, Germans Barri moves a total of 150 million kilos of fresh goods every year. Exactly as customer want and need it. Their orders and routes are changing constantly resulting in the need for continuously new transport service providers. The search for transport partners took massive time. “Perhaps only 10-20 percent of the 2,000 emails sent out in search for transports were read. You are working against the clock with fresh goods and faced with high technical requirements for refrigerated shipments,” reports Natalia Echeverry, dispatcher at Germans Barri.

Challenge #2: Special goods need special transportation

Whereas highly flexible transports are necessary for fruits, the opposite is needed for MC-Bauchemie. The German company is expert in developing, manufacturing and suppling concrete admixtures and repair systems. “We organise and plan both part loads and full loads for projects and constructions sites – or when we restock our storage”, says the Logistics Manager Lars Laskowski. “In total a volume of 500 to 600 tonnes per day and around 120,000 tonnes per year.” The company mainly cooperates with fixed freight forwarding companies to move liquid and powder materials requiring special transports. Only for those orders that cannot be transported by the standard daily rhythm, MC-Bauchemie uses transport service providers in the spot-market.

The solution that makes (daily) dispatching easier

By using the Smart Logistics System of TIMOCOM, Germans Barri is able to gain planning security thanks to the extensive coverage and high reaction speed of other TIMOCOM users – often with a response from a suitable service provider within 10 minutes. “You can even carry out numerous searches simultaneously. The simple search for a service provider makes the daily dispatching so much easier”, reports Natalia Echeverry, dispatcher at Germans Barri.

Another important point is trust: “If we assign a transport service provider through TIMOCOM, we can be sure that the goods will arrive exactly where they should do. We could establish a network of trustworthy partners through the platform who we work with on a regular basis”, she added.

A prime example from the production industry and how the Smart Logistics System represent flexible solutions is shown by the German company MC-Bauchemie. The loading of the vehicles as well as the routes are planned by the in-house planning department.

For irregular transports, the planning and shipping department uses, among others, TIMOCOM’s transport platform. The shipping department had very good experiences from the start and, thereby, has been achieving significant savings: 30 seconds after he entered the load, the phone wouldn’t stop ringing, explains Laskowski.

The simplified, quicker and more secure transport offers through the Smart Logistics System enable Germans Barri and MC-Baustoffe to focus more on other tasks, save money and valuable time. With various apps within one system, TIMOCOM provides the perfect solution for the needs in transportation described. It helps companies to react flexibly to new and established markets as well as customer requirements without overthrowing established processes within their business.

You can find more information on Germans Barri, MC-Bauchemie and TIMOCOM at: 

http://www.germansbarri.com/

https://www.mc-bauchemie.com/

https://www.timocom.co.uk/