Profit Recovery Posts

More on IBANs

Tuesday, July 27th, 2010

Following last week’s post on international payments, today’s will go into more detail on the IBAN, or International Bank Account Number. The IBAN contains all the info a bank receiving a cross-border payment should need in order to correctly apply the funds.

IBANs consist of four groups of alphanumeric characters:

a)    The country code

b)   Check digits, calculated via an algorithm of IBAN

c)    The bank code

d)   The account number

IBANs can have more than 30 characters, although not all do. The exact length is set by each country’s banking sector, and all IBANs within a country must be the same length, reports the United Nations Centre for Trade Facilitation and Electronic Business.

The IBAN is being used as the primary means of identifying accounts in Europe; as a result, international payments without IBANs often take longer. If you will be paying an organization that’s located within Europe, you’ll want to make sure you receive its IBAN information. The IBAN Registry prepared by SWIFT also provides IBAN formats for several countries outside Europe, including Israel, Saudi Arabia and the United Kingdom. At the present, the IBAN is not being used for payments within the U.S.

Not sure about an IBAN? Several organizations offer online tools that payers can use to validate the structure of an IBAN.

SaaS and “SaaSification” at AMR Supply Chain Executive Conference Sponsored by Ariba.

Friday, June 4th, 2010

I am currently on site at AMR’s Supply Chain Executive Conference, and I sat in on an extraordinary session called “Supply Chain in a Cloud.”  The presentation was sponsored by Ariba and presented by AMR heavies, Mickey North Rizza and Dennis Gaughan.  I have plenty to say about the research results and the light that AMR is beginning to shed on the migratory patterns of companies from enterprise applications to “the cloud.”  Before launching too heavily into that I want to call out a phrase that was really cemented during Ariba President Kevin Costello’s introduction.  Costello spoke of this migration as a “Saasification” of business solutions.  (rhymes with “classification,” let it soak in…)  I have heard this vernacular thrown around and I have even heard of business becoming “SaaSy,” but I think the discussion that rose up from today’s presenters and audience really put their finger on the pulse of this new concept.

What Ariba calls a commerce cloud and Mickey North Rizza further identified as the walls of the enterprise becoming blurred really is a “migration” or a “SaaSification.”  Presently not all enterprises are on this journey, but one gets the feeling that most companies are at least talking about it.  Over half of companies reviewed for the research reported that some aspect of their enterprise was on a public cloud.  (46% use a hybrid solution)  Yes, this was where the discussion of security began and continued throughout the rest of the presentation.  IT and those that empathise with the plight of IT have been consistent in their claim that SaaS commerce opens the door to more risk.  Unfortunately, Gaughan did confess that that inflated risk may only be conjecture at this point as there is no compelling data to point to more incidence of risk post SaaS implementations.  The risk boogie man is an external person that hacks into the enterprise and performs any series of costly or disruptive actions.  In reality, risk and fraud more often come from employees, customers or suppliers.  An argument can still be made that these exposures are equally present in SaaS or non-SaaS environments.

Discussions about risk aside, people are curious about becoming SaaSy.  There is too much to gain not to at least be curious.  The research suggests that implementation times are actually less than the expectations that enterprise apps have taught us to expect.  I was taking fast notes, but I gathered that 33% of companies that are considering a SaaS solutions expect ROI in the first 9 months whereas 60% of companies currently implementing a SaaS solution expect ROI in the same period.  Increased ROI; Costs reduction; faster time to productivity; Reduced Implementation and more frequent upgrades are among the top reasons that people are beginning to dream about the cloud.  Although these benefits were not without detractors.  One insightful voice brought up that auto-upgrades, although the promise less costs and constant cutting edge technology to the client are also disruptive in that than can easily tweak the work flow that has been adapted to support the new SaaS model.

The conversation was well presented and invited well-thought and free flowing commentary from the audience.  The mark of a great presentation, in my opinion, is one that turns the audience into the expert.  I suppose the socialization of information is what we are really talking about anyway.  The walls being blurred.  Businesses lock arms with their Supplier community.  In this model, if we play this out a little more, ultimately the supply chain becomes part the enterprise.  Eventually commerce itself becomes the enterprise.  It is something to think about anyway.

I digress a bit, but being part of discussion like this points back to the overwhelming need for Lavante’s supplier information management (SIM) SaaS tools.  Like most things, the SaaS model will only be as strong as the quality of the data inhabiting it.

Recovery Audit Firms

Saturday, May 29th, 2010

Lavante can generate Millions of dollars for large enterprises with very low demands on your staff time and zero impact on budget

For over 40 years companies have been performing recovery services for large corporations.  For years the typical industry benchmark asserted that “for every $1 Billion a corporation spends annually a recovery specialist could identify and return $1 Million in recoveries.”  This amount is the sum total of dollars that come from a myriad of recovery services.

This ”recovery total” benchmark has dwindled over time as the Accounts Payable space has become more sophisticated. In an unscientific poll of over 50 companies in the F1000 the 2010 industry benchmark is estimated to be closer to $400,000  – $500,000 in recoveries per every $1Billion spent per company per year.  Keep this in perspective … this is still a huge amount and underscores the importance of performing a recovery review.

BUT THERE ARE A FEW THINGS YOU SHOULD KNOW:

Lavante has discovered a new reality about “recovery totals” benchmarking.  Lavante focused very intensively on the records of your suppliers.  Although this practice is often miscategorized as a simple “vendor statement audit” the truth is that traditional recovery firms that offer a vendor statement audit only sample your vendor file.  That is understandable considering that the skills they’ve developed to perform an in depth AP review are different than those needed to collect, sort, archive and review thousands of decentralized supplier ledgers.

It is costly for your company to receive a “sample review” of your suppliers and assume you are getting proper service.  Yes, you may recovery some dollars, but traditional firms only review 5–20% of you suppliers on average and 61% of the recovery opportunity is in the bottom 80% of your supplier population.  If your current statement audit is recovery high dollars that only underscores how valuable Lavante could be for you.

Lavante’s software aided process is the most in depth method available for unlocking trapped working capital from your supply chain.  Lavante has mastered the ability to communicate with and update the records of your supplier population.  Lavante identifies, validates and delivers between $600,000 – $900,000 in recoveries per client per $1Billion in spend.  What is amazing about this statistic is that this money is additiveto what you are recovering through a traditional recovery audit.  THERE IS ONLY A 9% OVERLAP between Lavante’s recoveries and traditional  recovery types.

Lavante can exist peacefully alongside your existing recovery efforts or as a stand-alone!  If you do not have an existing traditional recovery auditor, Lavante can perform traditional client AP reviews and add additional value by infusing a host of newly discovered supplier insights into their searches and reviews - Consider the how a duplicate payment review will benefit by the knowledge of which of your suppliers are actually working as one.

Strategic Recovery

Payment Terms: New Versus Existing Customers

Wednesday, May 26th, 2010

When it comes using payment terms to either woo new customers or keep existing ones, most companies appear to treat both the same. That’s the result of an April  “quickie survey” conducted by PMMI, or the Packaging Machinery Manufacturers Institute. About 60 percent of respondents offer the same terms to both new and old customers, while 14 percent offer less-rigid terms to existing customers. Another quarter said the terms depended on the company’s credit history.

IAPP FUSION YouTube

Tuesday, May 25th, 2010

REPOST: Find IAPP FUSION 2010 videos on youtube

Wow!  If you have not already seen them online, IAPP has posted a number of videos relating to FUSION 2010.  They have been professionally produced and the do a great job capturing the energy of the week long event.  Whether you were there and you want to relve the fun or if you missed out and you want to see what everyone is buzzing about:  Follow the link to FUSION Videos to view all the fun.

Lavante Connect – The Buzz has Begun!

Wednesday, May 19th, 2010

REPOST:

Lavante CEO, Joe  Flynn successfully got Lavante Connect kick-started in front of the “IAPP Emerging Technology Tour” in the FUSION 2010 exhibit hall on Tuesday Morning filled with approximately 1600 financial professionals.  Earliest reactions have been fantastic and FUSION attendees flooded the booth to review a demonstration of the new products and platform. 

(See Joe below presenting to the crowd.  Look closely you can just catch a glimpse of Elvis peaking over someone’s head)

Lavante Connect Kickoff

Lavante CEO, Joe Flynn addresses IAPP crowd during Lavante Connect Launch!

Sherry DePew followed  Joe’s lead with a standing room only workshop where she discussed portals and demonstrated the Lavante Connect self-service supplier portal. She was held after her session by attendees with lingering question for about thirty minutes.

This is a game changer!  Proud of the new developments and proud to be a Lavantine!

Improving Supplier Diversity Programs

Monday, May 17th, 2010

Just how well do most supplier diversity programs work? A new study by research firm The Hackett Group indicates that many companies make several key errors in managing these initiatives. To start, too few focus on developing programs that further their corporate goals. Instead, they may focus on meeting certain numbers, or gaining recognition from their customers or within their industries. Not bad goals, to be sure, but they may not provide all the value that a more comprehensive approach might. Even when the programs align with corporate objectives, management often fails to ensure alignment at the operational level.

In addition, most rely on overly simplistic measures to evaluate their programs, Hackett found. For instance, about 90 percent of organizations track their percentage of spending with diverse suppliers. However, fewer than half the study participants track the percentage of overall suppliers that is made up of diverse suppliers. Moreover, only 10 percent analyze the impact of their supplier diversity efforts on revenue or market share. (more…)

A New Approach to Employee Motivation

Thursday, May 13th, 2010

While I was doing some research online about accounts payable technology, I stumbled across an article on employee motivation. No idea how the two subjects converged, but the ideas discussed in the paper made so much sense, yet go against so much of the conventional wisdom, that I thought them worth mentioning here.

The authors and researchers behind the paper are Teresa Amabile, a professor of business administration at Harvard University, and Steven J. Kramer, an independent researcher in Wayland, Mass. A summary of their work is available in this article in the January-February issue of Harvard Business Review.

To start, the two asked 600 managers to rank five tools commonly used to motivate employees, such as incentives and recognition. The winner, according to the managers? “Recognizing employees for good work, either in public or private.” After all, who doesn’t like to be appreciated? (more…)

T&E Spending Gets Greater Scrutiny

Monday, May 10th, 2010

If your firm is like most, management considers business travel a necessary, albeit expensive, tool to achieving its goals. Now, some firms are taking a more strategic look at T&E, according to a new report from AberdeenGroup. Those that do are rewarded with higher compliance to corporate travel policies, as well as lower costs to process invoices.

As a starting point, more than half (54 percent) of the 175 organizations responding now view expense management as a “mid-level strategic function that can drive moderate value to the overall organization.” That’s a shift from the previously held conventional wisdom, which held that T&E is simply a sunk cost. (more…)

Recovery Auditing Misconception #4

Wednesday, April 28th, 2010

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 this possible?

To begin an audit: Lavante can get started working from a data file that in many instances requires less than an hour for clients to generate. AP typically can create the data file Lavante needs and client IT does not need to get involved.  This is all that’s required for a full recovery audit.

To support an ongoing audit: Clients working with Lavante typically require less than one hour per week to receive and upload verified claims and vendor file updates into their system. No onsite Lavante personnel are ever needed to support the effort.

Clients who wish to save additional time can work with their Lavante Account Manager to integrate claims directly into their ERP system.  Lavante will automatically match claims against an internal credit listing, thus pre-checking the credits and enabling clients to upload credits directly as ledger entries with no manual intervention.

Lavante InSight

For companies concerned about the time commitment or skeptical of the potential benefits of performing a recovery audit, Lavante offers a way for clients to test and sample the service before fully engaging. 

Lavante InSight™ gives you a view of the recovery audit you might have. It generates an estimate of the likely cash recoveries and vendor updates you will receive if you choose to engage in a Lavante Strategic Recovery audit. Utilizing your master vendor file, InSight leverages Lavante’s extensive database of historical audit detail, a proprietary, on-demand software application and our Supplier Network of over two million companies to develop a comprehensive vendor and recovery analysis. InSight previews potential cash recoveries, duplicate and related vendors, recovery projections over time, vendor updates, and more.