Manufacturing firms face unique challenges in payment accuracy and process optimization due to complex supply chains and a vast number of vendors. A major motor vehicle manufacturer initially sought to optimize their accounts payable processes with PRGX through a US-focused recovery audit. This evolved into a comprehensive global initiative that uncovered significant process improvement opportunities, leading to lasting value creation.
$10M+
Corrective Actions Identified
$2.7M
Cash Recoveries Realized
$150M+
Auditable Spend
(Across 9 Suppliers)
Challenge: Global Labor Rate Variances and System Limitations Demanded More Scrutiny
An organization was struggling to ensure accurate costs across 9 IT labor suppliers ranging between $20-$150M of auditable spend. The suppliers included managed service providers and sub-suppliers with the added complexity of multiple global payrolls, rules, and currencies. They needed a holistic view into contract discrepancies and inaccurate supplier billing interpretations.
Solution: Contract Management Services Unlocks Present and Future Value with Global IT Labor Supplier Review
Labor services across multiple contracts and currencies can be difficult to manage if it is not an “apples to apples” comparison. A detailed contract review can identify system limitations, labor rate inaccuracies, and even rogue charges from suppliers.
The PRGX Contract Management services team identified miscalculations, incorrect rates, and system errors to prevent financial leakage. PRGX’s industry-leading methodology and technology also fosters healthier supplier relationships, which is especially important when dealing with mission-critical IT suppliers.
Breakdowns Identified:
- Miscalculated cost-based labor rates
- Incorrect/unauthorized rates applied
- Employees billed out of labor class time
- Billed versus time paid variations
- Application errors; overtime/PTO
- Offshore/onshore team mix variations
- Incorrectly computed discounts/rebates
Key Learnings:
- VMS system compliance limitations
- Rogue spend; supplier billing interpretations
Streamline Your Most Complex Supplier Spend with PRGX Contract Management
The PRGX Contract Management team is ready to help you gain greater visibility and insight into contract details and address systemic errors, ensuring immediate cash recoveries and long-term cost savings. Just in the past year, PRGX has analyzed $2.3T client spend with $2.3B client revenue across industries and services, yielding 10x average ROI. Chat with our team of experts about your unique goals and or watch a demo to see our solutions in action.
How Much Can You Recover?
Take a look at our services and solutions, backed by serious analytics.
