Case Study: Continuous Benchmarking Success Over Contract Duration

Drydenโ€™s Impact: Benefits of audit and benchmarks after RFP implementation

Situation

The client initially requested Dryden to support a comprehensive analysis of a bid event for an indirect commodity category. After successfully implementing and transitioning to a new program, due to reorganization, there was a lapse in the ongoing audit process. After one year, Dryden conducted an audit of the agreement and program on 12 months of spend data.

Solution

  • In depth knowledge of the Client program and agreement from support to the RFP
  • Ability to quickly and thoroughly perform a comprehensive audit of the entire program
  • Heavy SKU count
  • Audit 100% of the spend data
  • Identify compliance root causes
  • Identify vendor tactics that led to unauthorized price increases

Scope of Services

  • 12 month arrears audit to determine compliance and collect overcharges
  • Benchmark program for unauthorized price increases or manipulation
  • Identify and correct root causes for audit findings and pricing issues
  • Improve pricing metrics and measurability
  • Improve program architecture

Success

  • $200,000 recovered from overcharged items
  • $400,000 in benchmark savings over the remainder of the contract
  • Continuous Core/Non-Core ratio optimization
  • Demand management of SKUs resulting in reduced potential for maverick spend
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