Cost Recovery

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    • #292278

      Does anyone have information on cost recovery/invoice audit/invoice forensic services or software?  

      Specifically:

      1.What service providers or software are used?

      2.How has the service provider benefited your organization or provided value add and what are areas of improvement with service provider/software?

      3.Are the services or software used for specific types of invoices/services, e.g. telecom, printing, etc.?

      4.What type of arrangement is used for the services, e.g. percentage of cost recovered/identified, fixed fee, hourly billing, etc.?

      5.To what industry is the service provided, e.g. financial services, manufacturing, etc.?

      6.What is the approximate size of your organization in spend/accounts payable? 

      a.$100M

      b.<$500M

      c.<$1B

      d.<$10B

      e.$10B+

       

    • #293833

      1.        What service providers or software are used?  We have utilised PwC Forensic advisory for a review of our Procure-to-Pay (P2P) data. PwC Forensics have agreements in place with most of the leading eDiscovery platforms and data analytics/visualisation tools. 

      2.        How has the service provider benefited your organization or provided value add and what are areas of improvement with service provider/software?  The sort of analysis/review undertaken by PwC Forensics will identify typical P2P process or systems failings, or contract management inadequacies, such as manual calculation errors in invoices, duplicate payments, incorrect application of contract terms, pass through margin miscalculation, rebates properly due but not credited, incorrect application of rate cards, debit notes not claimed etc. 

      3.        Are the services or software used for specific types of invoices/services, e.g. telecom, printing, etc.?  The PwC Forensic service covers all direct and indirect procurement activity, and types of goods or services procured.  Everything from stationery, printing, contractor resource, through to complex BPO contracts/sows, and bundled telecom services agreements. 

      4.        What type of arrangement is used for the services, e.g. percentage of cost recovered/identified, fixed fee, hourly billing, etc.?  Flexible commercial arrangements are available, depending on the preference of the client, appetite for risk-reward, and/or level of maturity of the P2P function and contract management processes.  Everything from contingent fee, fixed fee, T&M, gain-share etc.   

      5.        To what industry is the service provided, e.g. financial services, manufacturing, etc.?  All industries and sectors, direct procurement and indirect procurement. 

      6.        What is the approximate size of your organization in spend/accounts payable? 

      a.        $100M 

      b.        <$500M 

      c.        <$1B   

      d.        <$10B 

      e.        $10B+ 

        

      Please provide any additional information. 

      PwC Forensic advisory is the service provider that I’m highlighting in my response (http://www.pwc.co.uk/services/forensic-services/forensic-advisory.html).  If the SIG member wanted a follow up with the lead Partner to discuss the scope of services, commercial proposition and type of value that could be realised, then Ranjit Auluk would welcome an email or call ([email protected]; 0207 804 0414). 

        

       

    • #293834

      Hi Mary,

       

      1.SC&H Group provides cost recovery, and invoice audit/ contract compliance audit services. For contract compliance/invoice audits, we primarily focus on our client’s indirect spend categories and typically identify and recover 2-4% of spend due to contract non-compliance/invoicing errors. Most supplier relationships we are auditing for our clients are in excess of $1mm per year in spend.   I have provided some additional information that may be helpful to the individual/organization posing this question below.

       

      2.Benefits delivered to clients by performing contract compliance audits: 

      a.Strengthen contract language, improve financial terms, and enhance internal controls

      i.Confidence that suppliers honor all contract terms

      ii.Establish more productive third party relationships

      b.Identify and recover overbillings

      i.SC&H utilizes supplier data to identify errors that are not evident within internal systems

      ii.Reduce risk for transactions that are difficult to control with purchase orders 

      iii.Verify accuracy of data reported by suppliers

      c.Strengthen long-term supplier relationships

      d.Monitor compliance with Most Favored Customer / Lowest Price Warranty provisions

      Additional information: https://www.scandh.com/services/consulting/contract-compliance-audit-services/

       

      Benefits delivered to clients by performing recovery audits: 

      e.Identify overpayments & recover lost revenue

      f.Detect hidden risks

      g.Resolve unrealized credits

      h.Bolster financial performance

      Additional information: https://www.scandh.com/services/consulting/recovery-audit-and-accounts-payable-audit-services/

       

      3.Each audit is tailored to the specific contract terms being tested. Different types of information are required to verify different transactions in different industries. In all cases, we work directly with our clients’ suppliers to obtain the necessary information and verify compliance. This reduces our clients’ time investment, and generally the contracts will require suppliers maintain this information and share it with an auditor.

       

      4.Pricing arrangement – SC&H operates under various compensation models depending on our client’s preference including: percentage of cost recovered/identified, fixed fee, hourly billing, or a blended model.

       

      5.Our clients span all industries from IT to Pharma to Manufacturers and more. The suppliers we audit are generally classified as indirect, non-trade, or not for resale spend.

       

      6.All of our clients have spend in excess of $1B per year. The average client has disbursements over $10B.

       

      If the individual/organization inquiring would like to reach out to me directly, I’m happy to have additional discussions or share a client reference if they would like to discuss with someone else on the buy side who is currently utilizing SC&H’s services.

       

    • #293835

      we have recently done this for invoice audit + contract audit. I am still looking for the vendor list but I believe we reached out to AP Recovery, Apex Analytics and SC&H.

       

      -We have recovered a six-figure value from the process.

      -2 years of non-merchandise spend reviewed

      -Structured commission as % of recovery

       

    • #293836

      We use Telesoft for recovery around Communication/phone and networks costs. 

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