What is a Vendor Contract Audit?
A Vendor Contract Audit is when we take a look at each and every vendor invoice you receive. During this engagement, we work with you to identify all invoices that come into your system via paper, or electronic means and work to identify how you use the vendor for managed services. Often you have vendor contracts and invoices for services that you are not aware of, or are paying multiple times over. Our team of auditors will work with you to sort through the mess and find a clear path to understanding why you are being charged for their solutions. Outcomes of these audits can transform your business by finding savings while really digging into the contracts you have with vendors. Outcomes of this consulting engagement typically result in the following items;
- Clear understanding on why I am being charged for the solution.
- Clear understanding on how this vendor plays into my “Managed Services Ecosystem”
- Understanding of when the contracts renew?
- Identification of possible savings by consolidating or changing providers for the provided solutions.
- ROI Report on each solution, and how much you make (or lose) on the solution
- And More!
How often should I audit my Vendor Contracts?
We feel you should run a total vendor audit once per year. Once we complete your first audit, we can put the proper procedure in place, and your operations team should be able to follow it. Your team is busy supporting your customers and keeping clients happy. Our team is here to help you with your audits. The last thing you would want to happen is to pay overages to a vendor for a solution that you are not charging enough for. let us bring to light where you need improvements on how you structure your agreements.
What can I expect from the completing of our 1st audit?
Once an audit is complete, we will build out the following for your team to follow. It will be up to you if you want us to do this for you on a scheduled basis or if your team will follow the procedures we outline for you.
- Recorded Video Coaching Session on How to audit your vendor contracts.
- KPI Measurements on Vendor Solution Cost to the profitability of solution.
- Recommendations to improve your margin or structure for costing.
- Clear understanding of WHAT you charge for and how much you make for it.
- Documented Process on when your vendor contacts renew and how they are structured.
Contact us for a free consultation!