Logistics Provider Saves Over $10M in Annual Labor Services Spend

Challenge: Complex Labor Services Spend Required Enhanced Contract Controls and Visibility 

The logistics service provider faced challenges managing their annual labor services spend. Manual processes and unclear contract terms led to duplicative costs and excessive mark-up. The provider needed a solution to establish stronger controls, ensure billing accuracy, and generate both immediate and long-term cost savings. 

Solution: Contract Management Delivers Savings with Cost Data Transparency  

Labor service contracts can be particularly complex especially when key contract terms are misunderstood. A detailed contract review can identify misapplied markups and duplications, providing revisions to prevent future errors and unlock substantial savings. 

The PRGX Contract Management services team applied labor services and logistics industry experience and AI-powered insights to deliver more than $7.3M in future savings and $5M in cash recovery.  

Breakdowns Identified: 

• Poorly designed contract structure 

• Lack of contractual definitions of key cost terms 

• Reliance on manual billing processes 

• Duplicative labor burden costs, overhead and SG&A expenses 

• Excessive mark-up on pass-through expenses 

Key Learnings: 

• Key business insights based on historical data compiled from the audit 

• Recommendations for enhanced contract language protections, reporting and billing process controls 

• Future cost avoidance of  over $10M annually 

Streamline Your Labor Services Costs with PRGX Contract Management

The PRGX Contract Management team is ready to help you simplify even the most complex labor billing and expense situations with detailed spend visibility. PRGX combines AI-driven technology to discover anomalies, manage contracts effectively, and increase efficiencies.  

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.