Rationalising and optimising purchases are currently major issues for our clients. This is in particular expressed by systematic negotiation of pricing terms.
These negotiations generally relate to all the pricing terms included in contracts : unit prices, all-inclusive prices, penalties, discounts/rebates/bonuses, price revision terms, transport/management costs, etc.
If properly negotiated, these factors enable our clients to optimise their purchasing costs.
But all these negotiated terms still need to be applied !
Experience shows us that there are very often discrepancies between the pricing terms negotiated and the prices actually charged in practice. These discrepancies occur just as much for core business purchases as for general admin purchases and lead to significant overcharging.
To deal with this problem, ABBD proposes auditing the application of these pricing terms for previous financial years. Where discrepancies emerge, we will recover overpaid amounts directly from suppliers.
This audit is based on dual competence :
- Our detailed knowledge of contracts, and in particular the structure of pricing terms (prices, rebates, discounts, indexing, …).
- Our expertise in processing large amounts of heterogeneous data. This expertise enables us to model all the pricing terms that require auditing and compare them with suppliers’ actual invoicing (see our page on Computer tools).
For instance, audit of following types of purchases is likely to highlight significant over-invoicing :
- Goods with significant rebates and discount
- Car fleet
- Telecom fleet
- Office rental
- Marketing and communication expenses
- Logistics expenses
- And more widely, all purchases with large volumes and complex pricing terms
Beyond cash recovered, this audit improves purchasing policies and achieves significant savings.