Direct & Indirect Spend Audits
Recover Overpayments for Direct and Indirect Spend
Find, resolve, and prevent overpayments while maintaining strong supplier relationships. Our experienced auditors can make the process efficient while helping establish greater transparency and contract alignment.
- 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
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.
Aligning Interests
Supplier relationships have many stakeholders ranging from business operations to procurement, finance, and internal audit. Because SC&H 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 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
