From a sourcing perspective compliance is the state of assurance that exists between contractor and contract holder in respect of undertakings made by both parties, together with the expectations arising from those undertakings.
It is confirmation that the supplier of a product or service meets the prescribed requirements, or specific standards, or the rules agreed upon, within the terms of a contract or an agreement.
The sourcing aspects in which compliance is a major concern are;
Contract Compliance – Ensuring that goods and services are acquired ‘on contract’ at negotiated rates and that full contract entitlements are realised.
Vendor Compliance – Ensuring that a supplier is able, authorised, accredited and insured to provide goods and services within the terms and conditions of contract.
Regulatory Compliance – Compliance with regulations; Legal, Environmental, Financial, Social, Trade, Product, OHS.
Every supplier is able to talk convincingly about compliance. Legal will have contributed diligently to contract documentation and their role and obligations may be enshrined in performance indicators. Yet, under scrutiny, the characteristics of contract non-compliance are self-evident in far too many commercial arrangements;
- Price Creep
- Product Swapping
Under-performance, encompasses the general negativity we see too often in our work. Where a raft of accumulated issues, some unrecorded, have led to a state of cynicism to the point where the next problem is almost anticipated.
Our Role in Compliance
Reassign reduces operating costs by scrutinising the cost of goods and services both pre and post invoice. We provide a vital post-invoice service known as Recovery Auditing whereby we review historical transactions to recover lost profits.
Recovery audits are a no-risk way to enhance bottom line profitability and ensure that bill payments are being reviewed holistically. More
Contact us to hear how we could work with you.