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Case Studies
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SPI Identifies Approximately $340k of Recoveries in Under 2 Months Business Problem
A large retailer underwent the initiative of evaluating recovery audit options after two consecutive, full cycle audits produced less than $100,000 each. After researching vendors, the retailer called SPI to look further into how its previous external audit firm had handled data and provide insight, along with actionable recommendations, to recover more payment errors, faster. Upon an examination of the retailer's situation, SPI found that the current firm had failed to request all available data, maximize recoveries from data received and review additional audit opportunities.
Solution
To make an impact on the client's bottom line as quickly as possible, SPI leveraged a team of experienced auditors with sophisticated tools who could begin recovering additional claims in areas that the retailer had already been targeting.
Within the first 2 months, SPI's recovery experts wrote $339,966.12 – more than tripling what the previous audit firm had found for the complete year prior.
- Second Pass of 2009 Data: SPI took a second pass through the data that the retailer's previous external firm had audited. For the same time period, SPI broadened the audit's scope and produced $90,000 worth of claims behind the previous outside firm's $60,000 – an increase of 50%.
- For 2010 data, SPI identified $250,000 dollars worth of claims through:
- Keying all freight bills to increase "Failure to Consolidate" claims and allowing for additional duplicate claim types.
- Increasing the type of standard "Duplicate Payments" routines allowing for additional duplicate claim types
- Implementing a review of Master Vendor Agreements vs. Paid Invoice data for missed "Off Invoice" allowances
Result
Because of the skill SPI's auditors demonstrated, SPI's client handed over access to its electronic buyer correspondence – an unprecedented move for the retailer.
Going forward, SPI will continue to increase 2010 dollars by:
- Continuing to review current and new Freight opportunities
- Continuing to review current and new types of "Duplicate Payment" routines
- Continuing to review Master Vendor Agreements vs. Paid Invoice data for missed "Off Invoice" allowances
- Implementing Discount categories, including Cash Discounts, Billbacks and Rebates
- Implementing all pricing categories, including price changes, scan, promotions and returns
- Implementing new opportunities, such as Escheatment, Performance Allowances and Anticipation
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