Yearly Archives: 2014

/2014

Seven Tips to Avoid the Impact of Bad Supplier Data

Bad data can be at the root of many finance and accounts payable challenges. And there are many ways vendor data can be processed that cause duplicate vendor files to be set up. Consider the various ways that a company names can be constructed.  The screen shot below how the Lavante Contact solution has located [...]

Building a Case for Vendor File Mangement

Over the years of doing webinars about Vendor File Management, I have been shocked by how much feedback these presentations have generated.  One of the most intriguing topics from these webinars was how to build a case for a vendor file management program.  Although it may require time on your part, the most effective way [...]

By | September 2nd, 2014|Categories: Recovery Audit, Supplier Information Management|Tags: , , , |0 Comments

Days Credits Outstanding – a new metric for managing cash flow

Days Sales Outstanding (DSO) and Days Payables Outstanding (DPO) are important, widely used metrics to manage working capital.  Financial managers monitor these statistics very closely and regard them as key performance indicators as they work to maximize overall cash flow as well as transactional efficiency.   Through our audit work communicating with extremely large numbers of [...]

By | August 24th, 2014|Categories: AP Industry|Tags: , , , , , |0 Comments

Inaccurate Vendor Data Impacts Multiple Departments and Can Jeopardize Critical Corporate Initiatives

Without current, accurate vendor data, a long list of corporate initiatives can be rendered unmanageable or even impossible to execute. From procure-to-pay, supplier diversity and tax compliance to strategic sourcing and social responsibility, supplier data touches multiple processes and can have a dramatic impact on priorities throughout an organization. In my professional career, first as [...]

Vendor Statement Audit – A Best Practice for AP Departments (Part 2 of 2)

In part one of this blog we discussed how the traditional approach to vendor statement auditing recovers only up to $100,000 per every $1B audited annual whereas a proper statement audit should recover 5-10X that amount.  In this blog I would like to discuss how and why Lavante is able to hit those much higher numbers. Lavante [...]

Vendor Statement Audit – A Best Practice for AP Departments (Part 1 of 2)

Since the beginning of the recovery audit industry, traditional firms have focused their attention on client AP data to perform recovery reviews.  Statement auditing (the practice of collecting and reviewing supplier AR records) required a different process than a client-side review.  Due to manual labor and outreach requirements, traditional firms review only a small subset [...]

Supplier statement audit can provide important insights before your next sourcing decision

With the increasing pressures on the profit margins, the efficiency of the procure-to-pay (P2P) processes has been under intense scrutiny within an enterprise.  Typically, Procurement and Finance organizations manage various aspects of P2P processes.  Thus, for a successful execution of the entire P2P process, each organization needs to understand the actions and motivations of the [...]

Recovery Auditing Misconception #4

Recovery Auditing Misconception #4:   I don't have the time or resources to support this process The Short Answer: It takes very little of your time or resources to support a Lavante recovery audit.  All you need do is send a basic vendor file and dedicate one employee for typically an hour per week. How is [...]

Recovery Auditing Misconception #3 of 4

Recovery Auditing Misconception #3:  Profit Recovery is not a current Priority and I can afford to wait. The Short Answer You may not be aware of it, but credits age and disappear over time. Once gone, they can’t be recovered. Our results show that delaying Lavante’s review could cost your company $62,500 per month for every [...]

Recovery Auditing Misconceptions #2 of 4

Recovery Auditing Misconceptions #2 of 4:  I already have a recovery auditor so I cannot use Lavante now. The Short Answer The Lavante Profit Recovery product is complementary to alternative recovery solutions.  Whether you are currently engaged with another provider, wrapping up an engagement, or planning to engage in the near future, Lavante’s unique offering [...]