How a Contract Compliance Audit Uncovered €800,000 in Overcharges for a Global Consumer Goods Leader

In today’s complex contracts, even the smallest discrepancies can lead to costly problems. It’s not about missed details or process flaws; contracts are simply intricate, with layers of pricing terms, service levels, and clauses that make oversight tough. Here’s how our compliance audit helped a global consumer goods leader recover overcharges and tighten up their procure-to-pay (P2P) process.

A global consumer goods leader approached us with a pressing challenge: ensuring that millions spent on services from a top consulting firm aligned with the contract terms. Over three years, they had invested €44.8 million in consulting services across the US and UK.  

Their consulting contracts were multi-layered, covering everything from project deliverables to travel expenses. With 90 Statements of Work (SOWs) and over 1,100 invoice lines, internal teams struggled to validate each expense against the terms of these agreements.

We used a focused approach to bring clarity and control to their invoicing and contract management: 

• Invoice validation: Each invoice was carefully matched against the contract’s pricing terms, ensuring charges reflected agreed rates and rebates. We combed through all added costs, from travel to one-off fees, creating an exhaustive record that held each charge to its promise. 

• Three-way matching: To add an extra layer of confidence, we introduced a three-way matching process, cross-referencing invoices, purchase orders, and payment records. This step was to ensure there were no duplicate charges and unapproved items that could have slipped through unnoticed. 

Our audit uncovered €800,000 in overcharges, where the consultancy had exceeded the contract’s capped fees—an oversight that had gone unnoticed by procurement.

What became clear was a fundamental disconnect between procurement and the business. Without open communication, procurement had limited visibility into contract changes, leading to unchecked charges. In this case, the business made revisions directly with the consultancy firm, without consulting procurement, resulting in higher spend than originally budgeted. 

To close these gaps and future-proof their processes, we suggested implementing simple yet powerful controls: 

• Invoice contract identifier code: We suggested including a unique contract identifier code on every invoice, empowering the invoicing team to instantly match charges with contract terms. This small adjustment reduced processing time and confusion, providing instant clarity on each invoice.
• Strengthening cross-functional ties: We encouraged stronger communication channels between procurement and the business unit, helping eliminate silos and unify their approach to managing contracts. This collaboration also improved relations with the consultancy, fostering a smoother, more transparent partnership that works for both sides.

With these improvements, the client now has clear visibility into their consulting contracts, allowing both procurement and business units to monitor spending in real time and catch issues early. This shared clarity means both departments can keep each engagement within agreed terms and budgets. 

“In my experience, many cost issues arise when procurement and business teams operate separately. Without alignment, important details can be missed, leading to unnecessary overcharges. Building a shared approach makes a significant difference in contract compliance.”

— Massimo Rotili, Contract Compliance Expert

Procurement teams put in the hard work to negotiate and create contracts, but all too often, agreed terms slip, and unexpected charges appear. Ensuring that what you agreed upon is what you actually pay for is essential—and that’s where a contract compliance audit makes the difference. 

1. Stop overpaying for the same services 

Vendor overcharges are common. Complex terms, fluctuating prices, and countless billing lines allow errors to slip through, costing more than agreed. An audit catches these inaccuracies, ensuring you’re not unknowingly adding to supplier profits. 

2. Pinpoint financial leaks you don’t see coming

Hidden costs and billing errors often go unnoticed until they become costly issues. Overlooked discounts, rate changes, and payment terms can quietly add up to significant losses. An audit ensures you’re paying exactly what you owe—no more, no less. 

3. Turn compliance into leverage

A contract audit strengthens your position in supplier negotiations. Validating every line item builds accountability, and suppliers respect the clarity, giving you leverage in future contracts. 

4. Keep your team focused on high-value work

Without compliance checks, teams waste time correcting repeat errors. An audit highlights issues early, letting your team focus on strategic value, not rework.

Let’s ensure your contracts deliver real value 

• Are you certain all invoices match contract terms? 
• Can your team validate each cost accurately?
• How confident are you that suppliers consistently meet their commitments? 

Our goal isn’t to find faults but to help you regain control and see the full picture with confidence.