Contract Compliance Review and Recovery Brochure

GLOBAL CONTRACT COMPLIANCE REVIEW AND RECOVERY

Supplier contracts that deliver high levels of savings are critical to corporate profitability. Negotiating beneficial terms, though, is only the first step. Often compliance falls by the wayside once a contract is finalized. apexanalytix offers expert global contract compliance reviews of your indirect spend to help you identify a broad range of issues that can silently erode your profitability – including unauthorized billings, pricing errors, uncaptured discounts and a host of other lurking variances. We use sophisticated analytics to review transactions and contracts from across your operations, gain source information from suppliers, build lock-tight claims and help you mitigate future risks. Use the form to request a copy of our brochure.

Supplier contracts that deliver high levels of savings are critical to corporate profitability. However, negotiating beneficial terms is only the first step. Often compliance with agreed-upon terms falls by the wayside once a contract is finalized. You need to assure that suppliers are adhering to the prices and terms negotiated and your process controls enforce them. According to a study by analysts with Aberdeen,1 contract noncompliance is a pervasive problem. Only 30 percent of transactions were compliant with contract terms in eight out of 10 companies surveyed. Even best-in-class performers found that 15 percent of their transactions were noncompliant. Why is contract noncompliance so prevalent? There can be many potential enablers across the global procure-to-pay process.

Realized Savings

Is your firm capturing all of the supplier savings negotiated by buyers? An Aberdeen study shows that procurement believes about 75 to 80 percent of negotiated savings are realized, while CFOs feel the number is only 34 percent. With contract compliance controls, you can establish the true facts.

75%–80% The percentage of negotiated savings Procurement believes are realize
34% The percentage of negotiated savings CFOs believe are realized

TYPICAL BARRIERS TO COMPLIANCE

The lack of a centralized contract repository
Complex contract language that can be easily misinterpreted
Fragmented manual processes that impede information sharing
Fluctuations in exchange rates
Incentive programs, volume discounts and penalty clauses that require careful monitoring
Business silos within organizations prevent full visibility of terms

Business Partnerships Can Help You Optimize Contract Compliance

Contract compliance audits are a key to breaking silos and gaining maximized contract value.

STOP THE HIDDEN PROFIT DRAIN

Forward-thinking companies are adopting contract compliance audits to ensure negotiated savings are captured and benefit their bottom line. apexanalytix offers expert global contract compliance reviews of your spend1 and suppliers to help you identify a broad range of compliance issues that can silently erode your profitability— including unauthorized billings, pricing errors, uncaptured discounts and a host of other lurking variances.

Our experienced auditors use sophisticated analytics to review transactions and contracts from across your operations, gain source information from suppliers and build lock-tight claims. We not only help you recover lost profits, but also mitigate future risks by identifying areas for process improvement. You can use the comprehensive audit reports we deliver to inform business decisions and strategy, tighten process controls, strengthen future contracts and build mutually beneficial, collaborative partnerships with your suppliers.

Comprehensive Review and Recovery

apexanalytix experts can help you uncover and address control and process weaknesses that are keeping your contract terms from being realized.

CASE STUDY: CONTRACT COMPLIANCE IN ACTION

A leading computer hardware manufacturer contracted with an information technology supplier to provide companywide IT support. Over time, executives noticed that service levels had begun to deteriorate while costs had soared.

apexanalytix experts performed a comprehensive audit of the supplier’s procedures, systems and billings. It was determined that the manufacturer was being charged for a full-time IT team that was actually servicing other clients. In addition, auditors filed claims for rebates that exceeded $2 million annually

“$2M Annual rebate claims after comprehensive audit”

THE APEXANALYTIX ADVANTAGE

Experts highly experienced in contract compliance and supplier relationship management
Powerful apexanalytix firststrike® analytics for data mining, analysis and reporting
Comprehensive transactional analysis
Enhanced supplier-customer relationships through transparency
A proven track record as the partner of choice for many of the world’s largest companies

ENSURE YOUR CONTRACT TERMS ARE REALIZED

Don’t let noncompliant supplier transactions take a hidden toll on your business. apexanalytix experts can help you achieve true transparency in your supplier relationships and ensure your contract terms are realized. We interview buyers, analyze patterns and trends, drill down into the root causes behind issues and make recommendations for reducing your future contract compliance exposure.