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News | Profectus Group: Audit, Compliance and Rebate Deal Management

BHP Billiton gains contract compliance with Profectus Group

Organisations find it challenging to automate invoice compliance against contract terms across all spend categories. With Profectus’ Contract Compliance (CC) technology and services, invoices are checked at a line-item level and validated against the contract pre or post-payment.

The CC technology also provides clients access to low-level data for reporting and highlighting spend optimisation opportunities. BHP engaged Profectus to audit key service suppliers to validate contract compliance.


Client Challenge

Equipment Hours Duplicate Charge

Within 12 months of invoices, the vendor charged for the same equipment usage multiple times in error


Equipment Hours Rate Error

The vendor overcharged for equipment usage than what was agreed upon within the contract


Gate Record Absent Worker

A worker who was not on-site during the given period was still invoiced for that period


Gate Record Mismatch vs. Invoice

The invoice is for more hours than the manpower was on-site


Unallocated Labour Hours on Invoice

Extra hours were being charged on invoices that did not match the invoice's own detailed records


Errors Identified

Profectus performed an in-depth analysis on the vendor invoice data for the 12-months prior, reconciling the invoice data against agreed contractual rates, machine hour details & internal BHP gate records to identify overcharges of 7.1% of the total annual contract spend.

BHP's Errors Indentified | Profectus Group Audits and Contract Compliance

Solution

Profectus has an ongoing compliance framework that reviews historical invoices and validates future invoice prepayment.


Compliance Automation

With low-level data from the contract and invoice, the potential for human error was removed


Spend Optimisation

Better decisions are made with more data available and deeper levels of visibility via a data feed into BI dashboards