Mining
Rebate Deal Management
After contacting Profectus, our client was able to identify 7.1% of the total annual contract spend as overcharges.
Results
- 7.1% of total annual contract spend was identified as overcharges
- Removal of potential human error with compliance automation
- Spend optimization with increased data availability and visibility
The Challenge
BHP was concerned about over-charge rates given their high level of spend. As a result of operating globally on multiple work sites and dealing with local suppliers, they faced challenges with invoicing and compliance, which they wanted to strengthen and organize.
The Profectus Solution
Profectus implemented an ongoing compliance framework that reviewed historical invoices and validated invoices pre-payment.
- Cost compliance automation
- Spend optimization
- Contract compliance across different categories of spend
After enabling low-level data from the contract and invoice, through the technology’s item level cost control, the potential for human error was removed. The introduction of a data feed (low-level data from the contract and invoice) into BI dashboards has allowed more data to become available, raising levels of visibility and improving spend management.
7.1% of the total annual contract spend were identified as overcharges.
$3.3m total spend with $247k as the value of errors identified.