Recover Overpayments for Direct and Indirect Spend
- Utilize supplier data to identify errors that are not evident within internal systems
- Be confident that suppliers honor all contract terms
- Reduce risk for transactions that are difficult to control with purchase orders
- Strengthen long-term supplier relationships
- Monitor compliance with Most Favored Customer / Lowest Price Warranty provisions
Detecting and preventing overpayments with your suppliers requires category expertise, contract experience, and industry knowledge. It is understood that inadvertent errors occur, but finding and resolving those errors while maintaining strong supplier relationships requires unique professionalism. Experienced auditors like SC&H can make the process efficient while helping establish greater transparency and contract alignment.
Identify Contractual Non-Compliance
Supplier contract structure directly impacts the risk of overpayments in many spend categories. Many contracts are structured based on cost reimbursement, but lack of visibility to a supplier’s actual cost makes validation of this arrangement difficult. Additionally, the use of prepayments based on estimated cost and the lack of timely reconciliations can further increase contract variances and reduce earnings.
Most suppliers’ accounting records are not shared with companies on a day to day basis. Audits are a unique opportunity to obtain accounting records, compare information, and validate compliance.
Supplier relationships have many stakeholders ranging from business operations to procurement, finance, and internal audit. Because SC&H Group understands each stakeholders’ needs and priorities, our audits meet all third party requirements. It is our commitment to:
- Preserve and enhance supplier relationships
- Conduct audits with transparency
- Avoid business disruption
- Produce accurate results
Avoid Future Non Compliance
By focusing on contract management processes and internal controls, SC&H Group is able to provide practical recommendations to prevent future non-compliance. We provide suggestions for contract language improvements that help to:
- Identify cost savings
- Clarify misunderstood terms
- Improve processes and operations