Managing a high-volume MRO supplier relationship with complex pricing structures creates significant challenges in spend tracking and invoice accuracy, leading to potential overcharges and contract compliance issues. Through comprehensive contract auditing and detailed spend analysis, companies can identify pricing discrepancies, correct classification errors, and capture both immediate recoveries and long-term cost savings. The client chose PRGX to leverage their industry-leading methodology, technology, and MRO experience to identify cost savings opportunities and strengthen contract compliance.
$150M
Auditable Spend
$9M+
Corrective Actions Identified
$1.5M
Cash Recoveries Realized
Challenge: Streamlining MRO Spend and Addressing Operational Complexities
The Western Canada based operations faced challenges managing complex pricing and transaction volume with their MRO supplier. With issues stemming from system limitations, the company sought a solution to identify pricing discrepancies, ensure accurate billing, and unlock both immediate recoveries and long-term savings.
Solution: Contract Management Services Deliver a Significant ROI for MRO firm
Managing high-volume MRO procurement with complex product classifications and exceptions can lead to errors and inefficiencies. A detailed contract review helps identify misapplied markups and cost inaccuracies, ultimately safeguarding your bottom line by reducing risks and unlocking substantial savings.
The PRGX Contract Management services team applied an industry-leading methodology and technology combined with MRO experience to deliver more than $9M in future savings and $1.5M in cash recovery.
Breakdowns Identified
- Average weighted cost computation errors
- Inaccurate product group classifications
- Misapplied buy-out markups
- Miscalculated zone adders
- Fee charge exceptions
Key Learnings
- Rogue supplier purchase exclusions
- Supplier system limitations preventing full compliance to contractual terms
Streamline Your MRO Spend with PRGX Contract Management
The PRGX Contract Management team is ready to help you simplify even the most challenging MRO manufacturing contracts with supplier management and detailed spend visibility. PRGX combines AI technology with industry leading services to contract data together to help discover anomalies, keep supplier information current, 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.
How Much Can You Recover?
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