What to gather before a supplier contract compliance
Supplier contracts set prices, terms and service levels. Invoices show what was actually charged. A compliance review lines the two up and looks for gaps. Preparation is mostly about finding the right version of each contract and tying it to the right vendor payments.
Here is what a partner firm will typically ask you to bring, and how to assemble it without a month of effort.
Pick the vendors first
You do not need to review every supplier. Start with a short list. Good candidates are vendors with recurring charges, contracts that have been amended, and services where price depends on volume or usage. Areas that firms in our network commonly cover include facility and maintenance services, temporary labor, mailroom services, office and warehouse supplies, security services, and printer and copy management. [CONFIRM: a partner firm supplies and approves the list of supplier categories it covers]
Write the vendor names in a single list with an internal owner beside each one.
The contract file for each vendor
For every vendor on your list, collect:
- The signed master agreement
- Statements of work, order forms and rate schedules
- Amendments, renewals and letters of understanding
- Any pricing letters or emails that changed terms
- Renewal and termination dates
Contracts tend to live in three places: a shared drive, a procurement system and somebody's inbox. Check all three. An expired agreement that kept running on old terms is a common finding, so note any contract whose end date has passed. One procurement source calls this kind of mismatch between agreed terms and billed charges contract leakage, and says it is often invisible on a single invoice.
The payment side
Contracts only mean something when compared with what you paid. Prepare:
- A detailed payment history by vendor for the period under review
- Invoices selected for the sample, with supporting data such as usage reports or delivery records
- Purchase orders linked to those invoices
- Credit memos and refunds received
- Vendor correspondence about extra charges
A partner firm may select invoices by statistical sampling. [VERIFY: confirm with the partner firm how invoices will be sampled and how many it needs] Keep the supporting records with each invoice so you are not searching later.
Pricing evidence
Several types of drift show up in compliance reviews:
- Billing at list price when a discount was agreed
- Charges after a contract has lapsed
- Missed volume tiers or rebates
- Auto-renewals that kept outdated pricing
- Purchases from a vendor outside the agreement
To test for these, the firm needs the original rate card and any approved changes. If your team negotiated a discount by phone, find the written confirmation. If none exists, say so. That is useful information.
For background on why terms change over time, see Why contract terms drift.
Known issues and contacts
Ask accounts payable and the budget owners what they have already noticed. Examples: a vendor that adds a fee every quarter, a service level that was missed, or an invoice you disputed before. Write each one down with the vendor, the date and who raised it.
Then list contacts on both sides:
- Your internal contract owner
- The person who approves invoices
- The vendor account manager and billing contact
You remain involved throughout. The partner firm gathers data, presents findings, and then you decide together how to approach the vendor. If you want to protect those relationships, read Keeping vendor relationships intact.
Pre-submission checklist
- Choose the vendors and name an owner for each.
- Collect the full contract file, including amendments.
- Export payment history by vendor.
- Gather supporting data for a sample of invoices.
- List known issues.
- Note contract end dates and renewal terms.
- Check any notice period for raising billing disputes. [VERIFY: contract terms on dispute windows, reviewed by counsel]
Next steps
When your file is ready, read about Supplier contract compliance and send a request through Request a professional. Fairview connects you with a partner firm. The firm does the review, and any fees are between you and the firm.
Sources
Tell us what you need reviewed. We match you by hand with an independent partner firm. You keep your existing vendors.Find out what you are overpaying.