Market Conditions Have Changed

The potential issues related to compliance of your vendor contracts have grown exponentially because of the COVID-19 pandemic and the resulting changes in business, operational and procurement practices. Almost every organization may be due recoveries that will improve their working capital.

In the normal course of business, recoveries are found for a variety of reasons—from unauthorized billings, pricing errors, volume discounts and more—and COVID-19 is exacerbating the potential for these errors. How can you protect your company? Here are eight areas that are opportunities for contract compliance recovery audits and can help your company’s bottom line.

Opportunities for Contract Compliance Recovery Audits

Opportunities for Contract Compliance Recovery Audits (cont.)

Opportunities for Contract Compliance Recovery Audits (cont.)

Why Is Contract Noncompliance So Prevalent?

The circumstances around the COVID-19 pandemic have amplified some of the issues that cause contract noncompliance under normal business conditions. Some of these fundamental causes of noncompliance range from strategic problems like the lack of a central system for contracts, to the tactical, such as an approver not noticing an unauthorized charge or incorrect billing rate.

Typical barriers to compliance include:
• The lack of a centralized contract repository
• Complex contract language that can be easily misinterpreted
• Fragmented manual processes that impede information sharing, including billing process, or time management systems
• Fluctuations in exchange rates
• Incentive programs, volume discounts, and penalty clauses that require careful monitoring
• Business silos within organizations prevent full visibility of terms.

You have spent time and resources to ensure a solid contractual basis for your purchases. This is a good time to complete the business exercise that will give you insight and recover working capital to which you are entitled by agreement.

To Find Out More

If you want to know more about apexrecovery contract compliance recovery services and how they can benefit your organization and bottom line, contact apexanalytix at +1 800-284-4522.