Grocery retailers routinely manage some of retail’s most challenging supplier relationships—characterized by razor-thin margins, stringent quality controls, seasonal variability, and ultra-short shelf lives. These same complexities extend to their waste management contracts, which span everything from packaging materials and expired products to display fixtures and pharmacy biohazardous waste. Adding to this complexity, this retailer manages both grocery and general merchandise across 3,000+ global locations, each with unique waste handling requirements and regulatory frameworks, making effective contract management even more critical to controlling costs and ensuring compliance.
$5M+
Corrective Actions Identified
$0.9M
Cash Recoveries Realized
$76M
Auditable Total Spend
Challenge: Navigating the Complexities of Global Waste Management Contract Compliance
Managing thousands of grocery and general merchandise locations can lead to considerable costs and varieties of waste management. With $207M in rebates at stake alongside core waste management costs, the potential for billing irregularities and missed value recovery opportunities is substantial. The scale and geographic diversity of the retailer’s operations created unique contract compliance challenges.
This major retailer needed to review the details behind the charges with full visibility into rebate structures and take proactive steps to identify existing issues and prevent future errors. They looked to PRGX for thorough Contract Management Services encompassing their global operations for waste management.
Solution: Comprehensive Contract Management Services Optimize Waste Spend and Rebate Capture
PRGX brought data together on collection weights, overcharges, double charges, rebates, markups, and billing systems to help discover anomalies, keep supplier information current, and increase efficiencies for the global retailer.
The PRGX Contract Management Services team provided a holistic view of both waste management costs and the significant rebate programs. Through detailed analysis, PRGX identified $5M+ in future cost savings opportunities and recovered $0.9M in immediate cash benefits. By recommending new billing processes and reconciliations, the team helped reduce future risks and discrepancies. PRGX’s industry-leading methodology and technology also fosters healthier supplier relationships, which is especially important when dealing with critical suppliers.
Breakdowns Identified:
- Inaccurate collection weights, duplicate charges
- Overcharges for extra collections
- Double charges for contaminated waste, plastics
- Rebates missed on scrap metal
- Third party billing errors
- Inaccurate markups on rented equipment
- Invoices presented beyond contracted timescales
Key Learnings:
- Billing process changes recommended
- Periodic reconciliations recommended
Maximize Value with PRGX Contract Management
Guided by our Contract Insights™ AI platform, the PRGX Contract Management team is ready to help you ensure adherence to terms with Contract Compliance, maximize value with Contract Optimization, and proactively manage and mitigate risks with Contract Monitoring.
PRGX applies over five decades of experience across industries to help drive 6x ROI with smarter contracts. Our unique blend of personalized expertise and secure AI technology creates supplier contracts that actively contribute to your bottom line. Chat with our team of experts about your unique goals, or watch a demo to see our solutions in action.
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