Unlocking the value from major contracts and finding real cost savings

Organisations increasingly rely on complex relationships with third parties. Getting value for money from these contracts is an ongoing challenge for most businesses. Services and contractual charging regimes are often complicated, difficult to understand and lack transparency. This can lead to a lack of commercial control and a loss of value.

Typical efficiencies and cost saving opportunities:

• Understanding the real cost drivers and true cost implications of management decisions
• Effective contract deployment – you signed a great deal but is the business really getting the benefit?
• Focusing P2P processes and controls on cost control and savings realisation
• Contract structure – do reward and pricing mechanisms fit the service/ product and are they driving the right behaviour?
• Operational efficiency and tighter demand management – how can delivery be enhanced at lower cost?
• Simplification – is decision-making hampered by unreliable evidence, inadequate knowledge or unnecessary complexity?
• Billing compliance and invoice error recovery

How we can support you

PricewaterhouseCoopers dedicated commercial assurance team work directly with our public and private sector clients to get better value from contracts and transactions with third parties. We help our clients to:

• Assess the extent to which their objectives are being met
• Maximise their ability to realise the benefits of contracts without losing effective control - such as increased revenue, decreased costs or enhanced levels of service, providing independent confirmation to stakeholders that the supplier arrangements represent value to the business and risks are effectively controlled
• Advise on how to create trust and plan between an organisation and its supplier

Typically, we identify savings of 10% of contract spend.