Audit Recovery for Leading Nationwide Retailer
Key audit recovery of $3.3 Million for Fortune 100 Retail Corporation
Situation
Our client is in a long-term relationship with an indirect commodity distributor; with various agreements over several spend categories. They have generated RFPs and renewed contracts but were not aware of several key pricing clauses that adversely affected their agreements and were the root cause for contract compliance issues. The client had not conducted a comprehensive audit of the agreements.
Dryden was engaged to perform a 100% audit on the entire spend category that spanned two agreements and three years worth of spend data.
Solution
Key Factors
- Multiple years of transactions
- Multiple agreements
- Heavy SKU count
Scope of
Services
- Compare agreement pricing vs. client historical price paid per SKU
- Collect reimbursement from supplier for any overcharges
- Complete 36 month transactional audit
- Evaluated agreement KPIs and metrics
Success
- $3.3 Million recovered from overcharged items
- Corrected nebulous Terms & Conditions and improved program
- Conferred full Audit Rights
- Improved KPIs and Metrics