Holding everyone to contractual promises
Supply Chain & Distributor Audits
Even the strongest contract is only as good as the adherence to it. In an era of outsourcing, when companies rely more heavily on other companies to provide essential services and products, having a handle on your supply chain and distributor contracts is critical.
EFP Rotenberg offers supply chain and distributor audits through our affiliate company, StoneBridge Business Partners.
Results that accrue to the bottom line
Our ability to recover funds and close loopholes has produced seven to eight-fold returns on investment and prevented tens of millions of dollars more in future losses. Among the issues with which we have experience:
- pass-through discounts
- cost-plus discounts
- end user rebates
- usage rebates
- chargebacks
- tier pricing
- administrative fees
Supply chain audits
A supply chain audit examines the following:
- Are you being invoiced at the prices you negotiated?
- Is the product you’re receiving the product you ordered?
If you are a group purchasing organization:
- Are you sure that all eligible products being ordered under your agreements are being reported to you, and all administrative fees are being remitted?
- Is your membership represented accurately?
- Are your members being charged the right prices?
Distributor audits
Our distributor audits take these considerations into account:
- Are distributors selling what they say they’re selling?
- Are they over-reporting discounts or rebates?
- Is product being diverted to unauthorized parties?
- Is grey market product finding its way onto distributors’ shelves or into their warehouses?
- Are you overpaying rebates because of incorrect reporting of end user sales?
- Is your profitability being reduced by errors or mismanagement in your channel?
Stonebridge professionals bring extensive experience in the auditing of distribution channel and supply chain agreements for a variety of organizations throughout the U.S. and abroad.
Read about StoneBridge Business Partners accomplishments on behalf of clients.
Recognizing the importance of relationships
We bring to our distributor and supply chain a sensitivity to your relationships; we recognize that in the best of all worlds you’d like to continue a working partnership that’s transparent and free from misreporting.