X
Validate the economics of every commercial commitment before approval supplier cost, customer pricing, contract exposure, commodity movement, freight, FX, and margin sensitivity, all in one decision so margin is protected.
The Validation Gap
Margin erosion doesn't start when costs rise. It starts when commercial commitments are approved without modelling how supplier costs, pricing structures, contractual obligations, and market exposure interact over time. Sales commits revenue. Procurement commits cost. Finance discovers the impact later, once contracts are live and the exposure is already flowing through the P&L.
ERP records transactions. Spend analytics explains what happened. Almost no system validates whether the commitment still makes commercial sense before execution. The Commercial Control Layer closes that gap.
The Control Decision
We check whether the deal still makes money before it's approved. Spendkey compares what you sell for, what it costs to deliver, and what happens if input costs move so you know the real margin before you sign. For every deal we show the expected margin, the margin if costs move (e.g. +5%, −5%), and where contracts don't align. Then we approve, flag, or block the deal. Every commitment is evaluated against commercial reality, not the assumptions that existed when the deal was first negotiated. Because profitable deals don't fail when they're signed. They fail when costs move and nobody sees the exposure until it reaches the P&L.
WHAT WE VALIDATE
Market Risk - Indexed inputs modelled before contracts signed
Cost Architecture - Sales commitments vs. supplier obligations, pre-execution
Transaction Capture - Validation endpoint: block, approve, or condition
Relationship Governance - Every decision logged: policy, not judgement
Then every commitment is routed — Approve if it makes money, CFO Override if it's risky, Block if it loses money.
The Infrastructure
Every indexed commitment passes through the same structured model. Supplier and customer contracts are parsed, index references extracted, and review clauses mapped. Exposure is calculated at commitment level index sensitivity scored, ±5%, ±10%, ±15% scenarios stress-tested, P&L impact modelled at deal and portfolio level.
The simulation engine answers what-if before you sign: index moves, margin sensitivity, customer price lag. Then governance routes the decision auto-approve within tolerance, condition where exposure is borderline, block where margin would erode. A governed decision, not a smart recommendation.
Margin at Risk
For organisations with heavily indexed supply chains, margin erosion is invisible. Metals, energy, freight, FX, agriculture commodity prices shift while contracts hold. None of it sits in the commitment model until it shows up in the P&L.
The Commercial Control Layer maps every clause to its relevant index, models the exposure before the contract is signed, and triggers automatic review when indices move beyond tolerance. Suppliers' pass-through clauses, customers' pricing lag, indexed inputs across the cost base modelled live, alerted before margin erodes.
DESIGNED TO DELIVER
Unlock hidden insights and supercharge your earnings growth with the world's first trustworthy spend analytics platform.
Validate price, cost, and exposure together before any contract is signed.
Track metal, energy, freight, FX, and category-specific indices against every active commitment.
Block, approve, or escalate every decision logged as a governance object.
Portfolio-level visibility for operating partners, deal-level control for procurement, board-ready audit for finance.
Four phases. From contract review to live governance.
Deliverable: Full indexed clause register
Supplier and customer contracts reviewed
Every indexed clause identified and catalogued
Index type, trigger mechanism, lag period documented
Addressable exposure quantified at category level
Deliverable: P&L sensitivity model
Commitment-level exposure calculated
Multiple index scenarios stress-tested
Revenue at risk vs. cost base exposure mapped
Priority commitments ranked by exposure magnitude
Deliverable: Live governance policy
Supplier and customer contracts reviewed
Every indexed clause identified and catalogued
Index type, trigger mechanism, lag period documented
Addressable exposure quantified at category level
Outcome: Every commitment governed
Every new indexed commitment validated pre-execution
Index alerts trigger automatic review cycles
Full audit trail across all decision objects
Quarterly exposure dashboard for CFO and board
Spendkey is the Commercial Control Layer validating commercial commitments before execution so margin is protected, not just measured. Talk to us about how it would map to your supplier base and index exposure.
Site by Strafe
