Originally appeared in Total Retail on March 4, 2021
Retail recovery audits are a proven mechanism for recouping cash lost due to overpayments. A large retailer can recover millions in lost profit and create process improvements that stop leakage from happening in the first place.
With today’s renewed focus on accelerating working capital and improving cash flow, getting the audit process right is more important than ever.
But no matter what the economic context is, asking suppliers to return cash they’ve already booked as revenue can cause friction. By building audits on a foundation of transparency and collaboration, retailers can optimize processes, improve recoveries, and ultimately improve their supplier relationships.