At-A-Glance: Single Supplier Audit of $450M Spend Delivers Instant ROI for Major M&A Consulting Project
When complex professional services engagements span multiple geographies, currencies, and delivery models, ensuring billing accuracy becomes critical to success. Through AI-powered Contract Management services, PRGX helped a leading organization transform their contract governance and cost optimization processes as part of a major M&A project.
$450M
Auditable Spend
$8M+
Corrective Actions Identified
$2.8M
Cash Recoveries Realized
Challenge: Single Supplier Contracts are Not Simple
Managing a global single supplier relationship across varied SOWs totaling $450M over three years can be challenging and error prone. The client needed an efficient way to confirm SOWs were billed and paid accurately across different rates, categories, and currencies.
Solution: Contract Management Services Provided a Significant ROI: 2.4% of Project Costs
Relying on a single supplier can be anything but simple, especially with onshore/offshore complexities and multiple currencies. A professional review of contract details can address systemic errors, reduce risks, identify cash recoveries, and lay the groundwork for long-term cost savings.
The PRGX Contract Management services team, driven by the AI-powered Contracts Insights engine, reviewed 75 SOWs, providing immediate and future savings totaling over $10.8M.
Breakdowns Identified:
- Discrepancies between time billed vs. paid
- Onshore/offshore mix
- Incorrect rates – price change timing
- Incorrect labor billing class
- Billed under wrong SOW
- Foreign currency translation errors
- Exceeded spend caps unsubstantiated
- Employee expense incorrect paid time off
Key Learnings:
- Required altered billing methodology to provide needed transparency
Streamline Professional Services SOWs with PRGX Contract Management
The PRGX Contract Management team is ready to help you simplify even the most challenging professional services projects by applying their five decades of experience and AI-powered technology.
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.
