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.

Correction of commodity/market price formulas results in future savings

Audit:  Major catalyst supplier with very complex pricing methodology

Discovery:  Supplier excluded Market Price Factor from commodity pricing formula

Focus:  The supplier requested an audit to ensure concurrence with pricing approach. The supplier was not seeking recovery but sought to ensure pricing concurrence with the client prior to significant upcoming purchases.

What We Did:  Connolly’s analysis determined that the supplier made errors in their computations due to the exclusion of the Market Price Factor (MPF) in the pricing formula.

Value:  Connolly’s recommendation to correct the pricing formula resulted in significant future cost savings for the client.

Recommendation:  Connolly recommended that when commodities are valued and priced, all factors must be included in the pricing formula.  The supplier should continue to proactively ensure accuracy in their billings.