Continuous Benchmarking Success Over Contract Duration
Dryden’s Impact: Benefits of audit and benchmarks after RFP implementation
The client initially requested Dryden to support a comprehensive analysis of a bid event for an indirect commodity category. After successfully implementing and transitioning to a new program, due to reorganization, there was a lapse in the ongoing audit process. After one year, Dryden conducted an audit of the agreement and program on 12 months of spend data.
Situation
Solution
- In depth knowledge of the client program and agreement from support to the RFP
- Ability to quickly and thoroughly perform a comprehensive audit of the entire program
- Audit 100% of the spend data
- Identify compliance root causes
- Identify vendor tactics that led to unauthorized price increases
Scope of
Services
- 12 month arrears audit to determine compliance and collect overcharges
- Benchmark program for unauthorized price increases or manipulation
- Identify and correct root causes for audit findings and pricing issues
- Improve pricing metrics and measurability
- Improve program architecture
Success
- $200,000 recovered from overcharged items
- $400,000 in benchmark savings over the remainder of the contract
- Continuous Core/Non-Core ratio optimization
- Demand management of SKUs resulting in reduced potential formaverick spend