A Complementary Upstream Solution to Save Time in the Long Run
For over 50 years, performing recovery audits has been a PRGX 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
PRGX Solution Suite
- Accounts Payable Recovery Audit
- Retail Merchandise Audit
- Contract Compliance
- Advanced Analytics
Technology-Enabled Platform
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