Ensuring Contract Compliance
Office Depot’s strong executive level support and oversight
•
Strong executive level support and oversight of Contract Compliance
– Board of director updates
• Quarterly updates
• Audit committee reviews
– Executive steering committee
• Chaired by Office Depot’s Business Solutions Division
President
• Oversight of major milestones
• Monthly updates on project status and key deliverables
– Internal audit oversight and review
• Monthly meeting to review potential risks
• Quarterly reviews of SOX requirements
• Periodic internal audits
Confidential
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Office Depot has enhanced its contract compliance capabilities
through investments in both organizational structure and systems
Contract Compliance
Organizational Support
• Support of our sales team in
writing clear and concise
contract language
• Analyze potential risks with
contract requirements, terms &
conditions, or special provisions
• Validate pricing set-ups and
changes
• Maintain integrity between our
pricing systems and written
contracts
• Ensure all documents are
gathered and loaded into
Aprimo
• Define and monitor key contract
triggers and perform periodic
contract and pricing set-up
reviews
Confidential
Document Management
Solution (Aprimo)
• Centralized document
repository and contract
database
• Contract event triggers to
alert sales reps and
compliance managers of
upcoming requirements
(pricing updates, renewals
etc.)
• Built in workflow to support
processes and ensure all
required activities are
completed on time and
according to contract terms
• Contract update planning
and reporting
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Price List Management
System (Vendavo)
• One end to end pricing solution
to manage the bid and pricing
processes
• Built in workflow to drive faster
more accurate responses
• More effective price
administration, price setting
policy, and rebate management
• Automated price updates for
catalog transition and cost
changes
• Better access to sales history for
price reconstruction and
customer reviews
• Institutionalized common
processes and best practice
utilization
To ensure independence, Office Depot’s Contract Compliance and Pricing
teams report into the Finance organization
BSD
Finance
Field Contract
Compliance
16 Compliance Associates
15 Credit Liaisons
• Review bid solicitations and
analyze contract
requirements, special
provisions, and T&Cs to
ensure compliance with
appropriate laws,
regulations, and policies.
• Manage communication with
legal, finance, pricing, etc.
for resolution of contract
issues.
Confidential
Contract Management
and Administration
Pricing &
Customer Maintenance
8 Contract Associates
46 Pricing Associates
• Manage and maintain
contract document storage
system and ensure
document capture.
• Define and monitor key
contract triggers.
• Perform periodic pro-active
contract and pricing reviews.
• Search for process
improvement and push
change .
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• The Contract Bids team is
responsible for working with
sales reps to respond to
customer bids and RFPs.
• The customer maintenance
team is responsible for
account analytics and
account maintenance for
existing business.
Ensuring pricing accuracy through structure, process
and oversight
•
How is Office Depot’s Business Solutions Division ensuring pricing
accuracy?
– Enhanced processes that includes multiple individuals accountable
for price approval and validation
– Strict adherence to contract terms and conditions
• Contract Compliance organization reviews and approves all
price change requests
Contract Compliance Support
Pricing Updates
Define
Pricing
1
Confidential
Submit
Pricing
Validate
Pricing
2
3
5
Manage
Pricing
4
Ensuring pricing accuracy through structure, process
and oversight
•
How is Office Depot’s Business Solutions Division ensuring pricing
accuracy?
– Automated daily pricing set-up reviews are performed on large account
base
• Ensures correct and consistent pricing for large customers with
multiple child accounts
• Review runs overnight and generates exception reporting that is
routed to the compliance manager, account rep, and account
maintenance team for corrective action
Confidential
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