How PRGX helps category management and merchandising leaders.
A comprehensive approach with whole business health benefits
We address the root cause of errors, preventing them from happening again. Our insights help to create a culture of audit oversight, improving transparency throughout the ecosystem.
Funded by the recovery opportunities discovered — ranging from .25% to 5% — we’ll address your purchase-related commercial terms to return profit to the bottom line and identify future cost savings.
We know that the real value in source-to-pay operations exists in supplier relationships, so we prioritize striking a careful balance between strengthening these connections with recovering profits.
What is Contract Compliance?
Jim Albrecht, VP Contract Compliance Audit Operations, provides an overview of PRGX Contract Compliance and how it delivers vital working capital and root-cause insights to the business.
Complementary methodologies to contract compliance plus powerful technology equals maximum business health.Download our PDF to learn more
How is Contract Compliance like a health check?
Angie Holsen, Regional VP, explains how PRGX helps deliver value for clients while strengthening relationships with suppliers.
Billing Compliance & Supplier Contract Audits Explained
Billing Compliance Audit: Lower touch, quicker results
A Billing Compliance Audit compares detailed purchase orders to submitted invoices at line-item detail to ensure agreed-upon terms and conditions are being met. At the same time, broad-based analysis of all commercial elements contained within contracts, including pricing, rebates and allowances, leaves no benefit unrealized.
Supplier Contract Audit: Deep and broad, maximum value and excellent insights
Typically applied to your most high-risk, complex contracts with higher spend volumes, a Supplier Contract Audit not only identifies and uncovers value but provides significant insights into how your contracts are being operationalized.
|Elements||Billing Compliance Audit||Supplier Contract Audit|
|Data Audited - Primary||Client||Supplier|
|Targeted Suppliers||Quality in-house line-item data exists - Typically, direct spend||High complexity/spend contracts and/or Quality in-house data doesn't exist - Typically indirect spend|
|Annual Supplier Coverage||Typically, 50 to 100+||Typically, 10 to 25+|
|Testing Focus||Pricing, rebates, allowances||All material financial exposures|
|Range of Recoveries||.25% to 1%||.5% to 5%|
|Formally Announced Audit||Never||Always|
|Supplier Interaction||Limited||Recurring & direct|
|Client Involvement||Lighter touch||Key governance and settlement roles|
|Pricing Structure||Annual program||Individual supplier|
Why work with PRGX?
Experts at managing relationships, risk and recovery
We’ve worked with the world’s largest suppliers and know the value of good relationships. Our vendor-sensitive delivery approach means we work transparently with suppliers to identify improvements in compliance, smooth out discrepancies and recover revenue, whilst taking care of the relationship.
An industry leader for 50 years and counting
An industry leader with a track record spanning 50 years, we’ll do the heavy lifting on behalf of your procurement team to deep-dive on contract and billing compliance and deliver actionable insights other providers might miss. The resulting recommendations will enable your organization to reap the immediate benefits of recovered profits and the long-term health benefits of stronger processes.