Case Study · Retail

Two stores, the same vendor, and double the price

A janitor's mop bucket and mops left beside a service gate after hours
A retail chain's janitorial and security invoices arrive store by store, each against its own local contract. The same vendor can hold a fully staffed contract at one store and a reduced one at another, and because nobody ever puts the two side by side, one store can be billed twice the per-labour-hour rate of a comparable store on the same chain, for years, without anyone noticing.

The problem

Store-level janitorial and security contracts get signed once, centrally or through a broker, and reread almost never. Invoices get approved against a budget line, not against the staffing schedule or the rate the contract actually sets.

None of it looks alarming line by line: a few dollars an hour here, an extra post there, too small to fight over on its own. Multiplied across dozens of stores and years of auto-renewing contracts, the same overbilling gets paid month after month, and nobody ever adds it up.

Portfolios compound it further. The same staffing vendor can hold a fully covered contract at one store and a bare-bones one at another, and because nobody ever puts the two side by side, one store can sit at double the per-hour labour rate of a comparable store on the same chain, with the same vendor, for years without anyone noticing.

When the pattern finally gets bad enough to notice, the fix is a management consultant charging thousands of dollars to do by hand what should have been automatic: pulling years of invoices and shift records to reconstruct a problem a live check against the contract would have nipped in the bud.

What Canary changes

Canary reads every labour contract and reconciles every invoice line against the clause that actually governs it. A shift billed as overtime the contract calls straight time, or a post invoiced as covered when it went unstaffed, gets flagged before the payment run, not discovered months later.

Canary also benchmarks contracts against each other across the portfolio, so a store paying twice the per-hour rate of a comparable store on the same vendor surfaces the moment the pattern exists, not at the next renewal nobody remembers to renegotiate.

What's at stake

2xthe per-hour labour rate one store can pay versus another on the same chain, same vendor, unreviewed for years
2 to 4%of audited spend typically recovered once contracts are checked line by line (SC&H Group)
Every storeholds its own contract and its own rate; nobody compares them across the chain

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