Forensic Cost Analysis has a parallel in Forensic Accounting. The later focuses on finding well concealed transactions and practices that either subvert statutory requirements, or even contravene the law. Forensic teams use data mining techniques to uncover unusual data elements that may point to an issue worthy of investigation. In addition, detailed knowledge built through years of forensic investigations develops "gut-feel" that the casual observer doesn't feel.
ADEPT utilises forensic analysis techniques to look beyond the standard procurement and cost management processes when analysing a cost category. While it is quite common for the outcome of our analysis to recommend a supplier re-negotiation or even a market bid, just like procurement, this only occurs after the data analysis determines there is sound commercial benefit likely to accrue. This is different to the standard strategic procurement approach whereby common categories are tendered at the end of contract cycles often resulting in little difference to the previous contract. Unlike your own teams, ADEPT has access to bids for similar spend at similar companies we can use to determine if you are paying industry benchmark pricing.
Our focus is finding cost issues that have remained concealed through a long association with suppliers, inadequate supplier reporting and client processes which, by their nature, obscure issues that can only be observed by taking a "helicopter" view of a complex data mining exercise.
Unlike forensic accountants, ADEPT does not charge by the hour. Many accounting based forensic analysis projects simply conclude with a significant fee bill and no commensurate return. ADEPT is sufficiently competent at our approach that we can very quickly identify if a project is worth proceeding past a preliminary assessment. We only exert significant effort once we have a very strong suspicion we can generate a cost improvement from detailed analysis.
Forensic accounting projects are usually initiated to satisfy statutory requirements of due diligence. This does not apply in the expense categories we investigate. Consequently, most companies never attempt such projects. For this reason, our projects all proceed on a contingency fee basis. If we fail to generate a positive cost saving from the project, you receive a clean bill of health, for nothing. As a consequence, we rarely proceed past a preliminary review unless we can identify clear evidence of potential gains. We thereby minimise your time involvement unless we can see a financial return for you, and us.