Using Technology to Uncover Disbursement Errors
Global Electronics Industry
This multinational conglomerate is one of the world’s leading manufacturers of consumer and business electronics. The company has more than 130,000 employees globally and annual revenues that exceed £47 billion.
“Mistakes are going to happen and using apexanalytix products and services really helps us recover money back to the bottom line. It’s very important as a cost containment factor.”
VP Finance and Shared Services
A company division headquartered in Europe had five years of disbursements that had yet to be audited. Executives suspected that unrecovered losses impacted their profitability.
The division selected apexanalytix to conduct a technology-enabled recovery audit and to compare its operations against industry peers. Auditors analyzed nearly 400,000 invoices that represented £4 billion in spending. They also reviewed nearly 1,300 supplier statements to identify unclaimed credits.
- Recovered more than £500,000 in losses attributed to duplicate payments.
- The rate of duplicate payments per million invoices was more than four times the industry average.
- Auditors recommended a vendor master cleanup since most duplicates could be attributed to multiple related suppliers in the vendor master file.
- Other root causes were found to include inconsistent or erroneous invoice coding and possible overrides of system controls.
- Recovered nearly £250,000 in statement recoveries.
- Leading root causes of unclaimed credits were cancelled invoices, rebates, duplicate payments, pricing discrepancies and prepayments that exceeded actual costs.
- Benefitted from metrics that can be used to support strategic sourcing decisions and drive process changes.