Case Studies

There’s opportunity for recovery and process improvements within many different contract areas of your business. These case studies illustrate the actual benefits Connolly delivers to its clients.

Supplier exclusion of contracted rebate results in recoveries of $500,000

Audit:  Oil & gas products distributor with contracted rebate program

Discovery:  Supplier failed to account for all applicable sales when figuring volume rebate due to the client

Focus:  Volume rebate to be paid annually based on aggregate sales

What We Did:  Reviewed all sales data for oil & gas products distributor with contracted rebate program to ensure correct rebate amounts were delivered to the client.

Value:  Connolly determined that the supplier excluded over $27 million in low-margin sales to the client when calculating the annual rebate due, resulting in recoveries of $500,000.

Recommendation:  Connolly recommended that when contracts containing rebate clauses are executed, special notice should be placed into the contract system, flagging the entry for annual review.  This helps ensure purchasing records reconcile with the supplier’s sales records and the resulting rebate is calculated correctly.