Is every vendor price the best that it can be? Can you be certain that every price on every invoice is correct? Are there variations in price for the same item in different locations? Have there been price increases that have not been approved correctly? How have price fluctuations affected purchasing?
We have identified discrepancies of between 1% and 3% in vendor pricing when invoices are analysed. That’s $10k to $30k for every $1m spent with vendors.
Multiply these variances by your annual spend to estimate the impact on your business.
How Does OnePosting Price Monitor Help?
Take a snapshot of your business by running Price Monitor for 3 months to analyse activity during that period. This will:
- Establish a price catalogue for every item purchased.
- Highlight variances between invoiced prices and the price catalogue.
- Establish the lowest price at which an item can be purchased from a vendor.
- Facilitate analysis of prices between locations.
- Plot pricing trends over time.
All of this is quickly and easily achieved using OnePosting technology that extracts line-level detail from vendor invoices as they are received during the audit period. This data is then analysed using a methodology that identifies:
- Price increases
- Price decreases
- Price spikes
- Price variances between invoices
- Price variations between purchasing locations
- Discount opportunities
The output of the audit process is:
- Price catalogue that lists the best price for products/services based on invoiced pricing
- Summary pricing analysis report
- Detailed product level price analysis
Benefits of a Pricing Audit
Certainty over costs is fundamental to establishing profitability and a key component is having consistent, accurate vendor pricing. The audit will either confirm that adequate price controls are in place in your business and there are no variances, or else it will identify pricing that needs to be reviewed.
The benefits of a pricing audit are:
- Support best practices when managing vendor pricing.
- Request credits for overcharging and pricing errors to achieve planned margins.
- Improve your negotiating position with vendors by having access to accurate invoiced purchase volumes and prices by individual product line.
Get the peace of mind knowing that your vendor invoices are correct and that there will not be any surprises in your financial reporting.
Sign Up for an Audit Now
Audits are painless – simply register and auto-forward vendor invoices received by email to our dedicated audit email address. The system will then run in the background for 3 months at the end of which, reports will be issued automatically.
Don’t Forget to Ask About Our Real-Time Price Audit Service
A one-off audit, even repeated at regular intervals detects historic issues. As outlined above, this can be extremely valuable in dealing with vendors.
In a significant enhancement of the service, OnePosting can provide price monitoring in real-time on a subscription basis, highlighting pricing discrepancies as they occur, enabling corrective action to be taken immediately – stop issues immediately to prevent them escalating.
The benefits of this are:
- Maximize margin by ensuring that you consistently get the lowest price possible.
- Minimize pricing errors.
- Take corrective action as soon as issues occur.
- Drive staff compliance with purchasing from approved vendors.
Latest posts by Finbarr McCarthy (see all)
- What Does Your Invoice Say About Your Business? - February 7, 2018
- Introducing OnePosting Price Monitor - September 11, 2017
- Accounting Automation Software Services Streamlines Retail Operations - June 6, 2017