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Our client had experienced a significant plant disaster within their operations and brought Revenew onboard a few weeks later to review supplier spend for contract compliance and invoice accuracy on a real-time basis. We replaced an existing third-party invoice review service provider and quickly worked through a significant backlog.

Project Scope

Our team was embedded into the client invoice review workflow to approve all invoices over $10K. Our test work was adopted as the evidence required for insurance reimbursement.

Revenew’s Approach

Our analysis revealed that in many cases, supplier contracts had been expedited faster than was ideal to address disaster-related needs immediately. Revenew identified several instances in which some of these terms were unfair and the rates excessive. We worked with our client to significantly reduce some of these rates and recover amounts that had already paid.

Contract language precision was increased to further eliminate gray areas that offered suppliers opportunities to over bill. Revenew shared industry best practices that empowered our client to challenge charges such as mark up on per diems, allowing labor rate OT for less than 40 hours, labor rate build up for OT to not include a doubling of state and federal taxes, and excessive equipment rental and lease rates not aligned with leading industry standards.

Triple ROI

ROI 1:  Savings from credit memos, reduced invoices, and prevented future overbillings totaled $2.22 million. 
ROI 2:  Prior spend overbillings recovered totaled $155 thousand. 
ROI 3:  Future overbillings prevented totaled $914 thousand.

Key Outcomes

Over $164M of total spend was reviewed. 

  • Total actualized hard-dollar savings of $3.28 million were prevented and/or recovered. 
  • The total ROI was 328%.
  • Findings we identified but were unable to recover were used as leverage to gain other contract considerations.