Transaction Analysts (TA) recovered £750,000 in temporary labour contracts

A major construction company contracted TA to review up to 18 months spend on temporary staffing costs across 25 suppliers (prior to the 18 month period no contracts had been in place).

The review process:

Data downloads were obtained from our clients JD Edwards Accounts Payable system and written requests for 6 month samples of electronic payroll and billing data were requested from the 25 named suppliers.

These samples were analysed in detail in conjunction with the clients AP data and if anomalies were identified, requests were made to the offending suppliers for the provision of payroll and billing data to cover the entire audit period.

A final analysis was prepared and working in close collaboration with the construction company’s Procurement Department, comprehensive claim reports were compiled and negotiations were held with the suppliers who had overcharged. 

The audit was conducted over a 3 month period with in excess of £750,000 being recovered on behalf of our client; £500,000 of this came from just one supplier!

Finding future savings:

As a direct result of the success of this project TAs client requested that TA staff should re-negotiate a number of temporary labour contracts with their suppliers though most of those chosen had not been part of the audit review.

TA conducted an analysis of the current agreed charges and compared this to market rates.  Details of forthcoming construction contracts over the following three year period were also provided to TA and meetings arranged between the suppliers, TA staff and our clients Procurement Team. 

The renegotiated rates resulted in future cost savings of up to 50% on the previously agreed rates with a total of £2.7 million in projected savings over the subsequent three year period.

This result was only possible as a result of the close working relationship TA had developed with the clients Procurement Department.

For further information about TA’s services and the savings you could make:

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Email: sales@ta-uk.com
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