A Data Analytical Approach
Does your company supply to governments, major retail chains, multi-national corporations or other entities under a contract with a Most-Favoured-Customer clause or other unique or complex pricing provisions? Or perhaps your company is party to a contract where payment is based on another metric, such as revenues or production, that is self-reported, for example, a royalty contract. In these cases and many others, your company should consider managing the risk that both parties to a contract are not upholding their end of the bargain – whether intentionally or not. Non-compliance can lead to lost profits and damaged counterparty relationships, among other negative impacts. Monitoring compliance through data analytics can be a cost effective way of doing just that. Despite the potential for "hidden value" to be realized, in our experience, many organizations have not implemented effective monitoring mechanisms.
Read the full PDF to learn more.