Supplier Contract Fragility
Fleetworx have worked with a number of clients to review and renegotiate complex supplier contracts, which otherwise would have remained unchallenged, costing the client unnecessarily.
Client A , a pharmaceutical company, had negotiated a highly competitive hire car tariff with its incumbent lease supplier. During a review of the clients contracts, Fleetworx identified an incorrect tariff being applied by the supplier for 8 months. This resulted in an immediate credit of £36,000, and removed the risk of an annual £54,000 overcharge had it not been identified.
The supplier to Client B, a technology business, proposed contract re-writes to revised rentals for mileage adjustments both up and down. After a contract review by Fleetworx, we discovered that the average credit rate for under mileage was less than half the supplemental charge for over mileage. This was in conflict with the supplier contract terms. As a result, Client B, avoided an additional charge of £300,000, which was approx. 10% of the annual spend with the supplier at that point.
Fleetworx worked on invoice control and management for Client C, a technology business. During the course of our review processes we identified a significant overcharge. Over a 4 month period, the supplier had continued to charge for 11 cars that had been off-hired under a novation agreement. As we examine every supplier invoice we identified this overcharge and pursued the supplier for a credit of £24,640.