A Complementary Upstream Solution to Save Time in the Long Run
For 50 years, performing recovery audits has been a retail best practice. The ultimate objective is to correct the issues that cause profit leakage and prevent them from occurring again. Despite this objective, errors still persist.
While recovery audit is a long-standing practice, retailers and suppliers would prefer to prevent errors from occurring in the first place. By using learnings from the recovery audit and putting new processes in place, the shift towards a preventative approach can save retailers time and money.
A preventive audit works as a complement to a retailer’s existing process to monitor the alignment of contracts and planned performance. The PRGX Preventive Audit solution will monitor contracts, sales plans and billing systems to identify opportunities for corrective action all the while reporting on the errors corrected and value created.
The Value of Preventive Audit
A sustainable approach toward error prevention will improve financial and operational performance for Retailers and their Suppliers. There are five primary sources of value that make this a compelling solution for the Retail industry.
- Cost of Goods Sold (COGS): Error prevention will result in negotiated funding being reflected in COGS vs. post audit income.
- Administrative Costs: Reduction in post audit claims will result in less review and correspondence relating to claims approval.
- Time Value of Money: Getting it right the first time will ensure Retailers are receiving supplier funding sooner vs. later.
- Supplier Abrasion: Reducing the claims deducted as a result of the Recovery Audit process will improve supplier relationships and reduce their costs associated with deduction resolution.
- Margin Accuracy: Reflecting post audit income into COGS will make downstream margin reporting more accurate.
The key to unlocking these sources of value lies in the ability to understand the root cause of the overpayments, the types of errors that can be prevented, and a comprehensive approach toward preventing these errors on an ongoing basis.
PRGX Preventive Audit Solution
Accounts Payable Recovery Audit
Outsmart the Spend Cycle
Although untapped value exists within your source-to-pay data, the resources for finding that value are scarce. Common errors like duplicate payments can lead to millions of dollars in lost profit. Our Accounts Payable Recovery Audit helps companies identify and recoup funds across a myriad of settings and prevents the errors from happening again.
Our comprehensive approach reviews all major factors of your accounts payable process, including:
- Escheatment avoidance
- Sales and use tax
Retail Merchandise Audit
Recover Money Quickly
Thousands of vendors, tens of thousands of items in inventory and millions of transactions – with countless moving parts – create an environment that’s effective at hiding things such as unapplied discounts and under-deductions. Our Retail Merchandise Audit solution identifies gaps in processes and systems to prevent future errors, all while helping you recover money quickly. That’s why we’re trusted by 75% of the world’s largest retailers.
Realize Maximum Contract Value
With the significant number of third parties you manage, making sure they fully deliver on contracted terms can be a huge task. Our Contract Compliance Audit services help ensure that your contracts are thorough and effective and that all third parties are performing and invoicing to your negotiated agreements.
Our services cover:
- Price variance
- Labor rates and per diems
- Equipment and materials
- Mark-ups and multipliers
- Profit and overhead
More Data, More Expertise, More Value
Every day that your source-to-pay cycle isn’t optimized is a missed opportunity to find the resources you need to invest in and grow your business. Our Advanced Analytics combine industry-leading consulting and data expertise with robust tools to rapidly uncover insight and take action to deliver bottom-line results.
Protecting highly sensitive client data
We utilize a unique technology triad that enables our specialized teams to efficiently and securely perform a variety of audits – to help you uncover value in your processes. Our proprietary platform, the Verigon™ Solution Suite, rapidly takes in huge volumes of transaction data from accounting, ERP, procurement and other systems. Once captured and streamlined, data is housed in our Epiphany Data Foundation™- the foundation of our recovery audit, contract compliance and advanced analytics solutions. At the same time, enjoy complete visibility into the audit process and fund recovery via our Panoptic™ Compliance Audit Platform.
To help keep our client data secure, our technology maintains the privacy, integrity and controlled use of confidential information, including personally identifiable information through a combination of hardware, software and physical security, coupled with strong internal data security processes, procedures and controls that meet or exceed relevant laws, regulations and industry best practices.
ATLANTA, January 19, 2021 – PRGX Global, Inc. (Nasdaq: PRGX), a global leader in recovery audit and spend analytics services, hosted PRGXchange™ this past October, its annual thought-leadership conference for...
ATLANTA, Jan. 18, 2021 – PRGX Global, Inc. (Nasdaq: PRGX), a global leader in recovery audit and spend analytics services, announced its e-book, “Why Recovery Audit Remains Essential in 2020,”...
Retail merchandise recovery audits are an effective way to recoup funds lost due to overpayments, under-deductions, and simple human error. But like any meaningful business initiative, audits require time, resource,...