Existing Relationship – Open Book Audit Verification
What we deliver
Reliabilty of performance and cost information. An integrity review of your supplier’s cost and performance data, we identify where data is transparent and where improvements need to be made to satisfy scrutinising stakeholders.
How you will benefit
Assurance that supplier performance and cost data is valid. It provides better certainty to stakeholders that are not as close to the supplier as the primary client team, that the supplier’s performance and cost data is accurate, is not being unfairly manipulated and can be transparently relied upon.
Insights for lessons learned. This review will identify and highlight the good practice your organisation is already delivering in monitoring open book auditing of their complex supplier relationships. Learning from ‘what is already good’ and providing support where improvements can be made, often means greater value can be generated from the relationship.
Key contents of the open book audit review;
General level of profitability
It is in the public interest to have transparency over the general level of profitability. We identify how your contract provides this transparency for wider stakeholder scrutiny.
Stakeholder transparency questions
We will discuss with each senior stakeholder their view of the level of transparency of data they require and the degree to which they perceive it is being provided.
Beneath the surface
Some suppliers claim they are losing money on delivering your services. However, their own group sub-contractors may be being used who charge higher margins to their group companies.
Ambiguous contract terms and schedules
We identify contract terms working against open book auditing and suggest how these are overcome by ‘Expert Responsibilities’ implied by recent case law.
Strategic supplier assurance strategy
As part of our review, we will identify where your supplier assurance strategy provides appropriate principles for open book auditing and where improvements can be made.
Internal team skills
We will review what your team are already good at in terms of open book auditing and if there are any further competencies that it would help to develop to provide more robust transparency.
Supplier facilitation and negotiation
Where suppliers resist providing appropriately transparent data, we can support you (or lead) in negotiating better access to source data using “Expert Responsibilities”.
Client performance monitoring
We’ll highlight where you are appropriately ‘digging under the surface’ to validate whether the data being provided from the suppliers is not being inappropriately manipulated.
We’ll help you identify where your organisation is already doing great things, and which specific aspects of our own experiences can help you optimise the approach to open book auditing.
The output is designed to provide key principles and indicators of ‘what good looks like’ to assure appropriate transparency of supplier performance and cost data along with recommendations.
Open Book Audit Verification is only one element of the BPG ‘Optimise’ method
Evidenced by over 500 complex relationships, it can be implemented quickly to improve service innovation and drive down BAU costs
Share Great Practice
Experience of over 500 complex supplier relationships, means we can share great practice with you that really works.
Drive maximum value
Open Book Audit Verification helps support the 10 key characteristics that drive maximum value in complex supplier relationships.
A brilliant project outcome
This is part of the ‘Optimise’ process; a proven method assuring a brilliant project outcome and an excellent supplier relationship.
5 steps to a great new relationship
See the 5 steps to making sure new complex supplier relationships work really well.
Clients that we support
Most of our clients are already highly experienced in complex supplier relationships. Click here to see how we help them take complex supplier relationships to the next level.