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High level analysis of corporate wide spend to identify and segregate real estate / facilities expenses

Client: Worldwide Conglomerate in the Production, Transportation, Building Technology, Power Generation and Healthcare Industries

Project Scope: High level analysis of corporate wide spend to identify and segregate real estate / facilities expenses, as well as assist in determining uniform facility protocols and contractual relationships.  Overall purpose of project, after expense allocation, was to determine best practices within each division and create overall best practices, policies & protocol’s to be implemented globally.

Success Factors: Identification of vendors with multiple contracts; provide concise recommendations for immediate combining of contracts while assisting in the implementation of a plan to establish new contract terms & conditions negotiated.  Establish and implement client favorable audit clause and mutually beneficial dispute resolution clauses.  Implement contract abstracting process and tracking mechanism to ensure that the key points within contracts are accurately tracked (i.e., contract owners, key dates (i.e., effective, commencement, expiration, etc.), renewals, audit rights, discount and rebate tiers, related parties/agreements, etc.).

Project Challenges: Identifying contract owners/touch points (both client & vendor), locating contracts, amendments, addendums, etc.  The detailed support from various vendors was lacking and comparable client information at times non-existent.   These challenges were overcome by the Client Executive Management and its Project Team being clearly informed and entirely committed to the project goal.

Outcome: $2,250,000 in secured retrospective and prospective benefits.

ROI - 325%

Recommendations: Reduce number of active vendors to a more manageable level; establish new vendor/supplier pools (i.e., Category A, Category B, etc.); Establish and enforce project work order protocols, project and invoice approvals; implement audit rights (i.e.., establish global template) and ensure periodic audits (i.e., audit program) are implemented enterprise wide to effectively and proactively address all noncompliance billing matters and reduce overall spend.

Risk/risk mitigation strategies: Implementation of an enterprise wide contract audit program to be conducted annually on a random basis. Establish and implemented client favorable audit clause and mutually beneficial dispute resolution clauses.