Client
A Leading Global Chemical Company with a Focus on Styrene Monomer, Polystyrene, ABS Standard and Styrenic Specialties
Industry
Downstream – Petrochemical
Revenew Services
Performance Improvement – Real-time Invoice Review Program for Plant Turnaround
Project Scope
Our client is a large multinational chemical company with more than $60 billion in annual revenue across its business lines. It operates in dozens of countries, making its budgeted capital and operations spend complex and difficult to track. To avoid the risk of an overestimated turnaround affecting its earnings in one of its US-based business lines, the client engaged Revenew for its Performance Improvement services and real-time invoice review program on a no-risk contingency model.
Revenew’s Approach
Because our approach is always driven by the customer's needs, no two turnaround engagements are the same. For this real-time invoice review program, we began by building a team of subject matter experts, specialists, and analysts focused on labor, equipment, materials, per diem, and non-reimbursables.
The Revenew team then reviewed contracts and amendments for 12 suppliers and reviewed 468 invoices valued at $113 million with an estimated 500,000 labor hours. We verified calculations, equipment charges, and reviewed unusual items that were purchased or billed. For any potential mis-billings, the team verified the charge with the client and—in the event of an error—reached out to the supplier for a new invoice, cancelled the current one, and modified the client’s spend dashboard accordingly.
Throughout the process, Revenew coordinated efforts with the client’s project management team to validate findings and ensure all review work was completed accurately.
Outcomes
Revenew identified labor overbillings and incorrect equipment charges in the amount of $1 million. These errors were corrected, and the client’s dashboard was updated accordingly.
In addition, the Revenew team tracked the root cause of the mis-billings and found that ineffective contract language had been at fault—and prevented recovery of an additional $1.5 million in findings. To avoid these issues occurring in the future, Revenew recommended strengthening contract language in the following areas:
- Statutory payroll
- Small tools and consumables
- Per diem
- Contracting using third party services