How do Profit Recovery and Supplier Information Management fit together?
Lavante is the leading provider of on-demand solutions for Profit Recovery and Supplier Information Management (or “SIM”), but until our firm started tying the two products together they had never been united into the same product suite. For Lavante, Profit Recovery and SIM work hand-in-hand to deliver a level of value that no firm in the Profit Recovery or SIM market alone can match.
Lavante SIM is viewed as an industry-leading solution in a variety of areas such as: supplier on-boarding & data collection; compliance initiatives (e.g., FACTA compliance, FCPA, OFAC, etc.); risk & performance; requisitioning; diverse/small business reporting & validation; banking validation; and, much, much more. But even on top of all this – Lavante offers clients an “x-factor” – Lavante Recovery.
Lavante Recovery is a natural extension of the Lavante SIM solution because we are able to leverage our patented, and award-winning, communication engine to solicit and request the highest possible volume of supplier AR balances, and achieve the most exhaustive look into the transactional records of our clients’ suppliers. Upon collecting the database of supplier AR records, Lavante can take full advantage of the patented workflows, processes, and governance capabilities of Lavante SIM to process any identified credits, validate them as claims and present them through the Lavante Connect platform with button-click access to all supporting documentation. Lavante Recovery drives millions of dollars back to our enterprise clients and although the Recovery solution works well as a stand-alone product it is also a seamless and powerful addition to our SIM solution suite.
The combination of these products not only delivers a value multiplier to the client, but it also serves as a proof source to the power and versatility of Lavante SIM. Lavante SIM can support any and all of your supplier data needs and projects. Just think about it; with out even breaking a sweat, Lavante SIM can layer in and support a solution as complex as “supplier statement auditing” which requires, solicitation, collection, review and storage of 10,000’s of unrelated and dis-similar documents across multiple communication media (email, mail, fax, file transfer, etc). Add to that, the system will read any and all potential credits and run them through system logic and workflows to secure supplier-signed verification for every valid claim, and then these claims and supporting docs are presented to the client in a SaaS application queued up in a workflow engine for client processing. And everything is monitored, archived and pushed into a robust reporting suite. Auditing this process requires simply giving system access to an auditor and that’s it. Lavante SIM can effortlessly supports this entire process- and that is just one of many different modules. Just imagine what this system can do for you. There is no limit, and frankly, no equal.
What is the benefit of bundling Lavante SIM and Lavante Recovery?
With Lavante, you have an opportunity to create a single universal standard for how you would like to treat all of your supplier data, while at the same time employing a near unlimited set of localized rules based on business function, country/region, division/business unit, commodity, supplier type, and much more. Lavante allows you to determine every possible configuration of supplier information collected – and execute automated validation on all of the data while pushing it through all of the necessary workflows and approvals. Every login, and subsequent keystroke, is digitally observed and stored to ensure that your company has fine-tooth control, with audit tracking, over the entire process.
Every company using the Lavante Connect Platform has the option of integrating Lavante Recovery to solicit, collect, and review supplier statements, with the ability to drive validated credits back to their bottom line. The Lavante SIM solution drives exceptional hard and soft savings by managing your suppliers to the highest possible standard and removing extraneous costs out of your supplier management process. In addition, Lavante Recovery will recover millions of dollars of otherwise lost profits from the very suppliers your are looking to manage.
Most companies using the combination of the Lavante tools can recover more than enough savings in the first couple months of the engagement to cover any annual costs of Lavante SIM software. Even in the most complex organizational and Supplier Information Management environments, the first-year, hard-dollar ROI remains well under a year.
What is the history of Lavante’s joint solution: Profit Recovery & SIM?
Lavante started in 2001 as the premier provider of statement auditing. Over the course of several hundred statement audit engagements (which has included many millions of connections with our clients’ suppliers), Lavante developed a keen understanding of what it was like for an enterprise to work with a large, unwieldy, and disparate supplier population. Our efforts in refining our outreach engine resulted in industry leading recovery totals as well as multiple patents on our technology. In fact, Lavante owns the industry’s only patents on a full scale, multi-mode communication engine, an OCR technology for reading line items off of supplier documents, and the ability to manage credit line items through an automated system.
In 2004, Lavante was awarded a major account with a large domestic railway. We were allowed to run our software, in parallel, with the industry’s largest “traditional” recovery audit services firm. In less than one month of work, our efforts recovered more dollars than the parallel firm’s previous year of auditing. Of course, the client asked us, “How is this possible?” The answer was simple; we were able to communicate with a population of suppliers that no other firm could even think to reach out to, let alone drive compliance through. We were reviewing the decentralized and disconnected records of a massive population of unrelated companies. There was no way their suppliers could ever uphold their AR balances as well as a single well run AP department – and there was no way a traditional firm could get to this level of data and subsequently no way for them to out-recover our software.
When we explained to our client about our communication outreach technology, and our high compliance from their suppliers, our client was appreciative to have the recoveries but they were more intrigued by the greater opportunity, and they asked, “If you’re this good at communicating with suppliers, why are you limiting your search to statements and credits?” The client continued, “There are so many more pressing things I would ask my suppliers if I could only find a way to get them to answer my requests.” And, in that moment, the Lavante vision for SIM was born.
Fast forward to today… We have now been working with F500 enterprises for nearly 15 years and we have continually evolved since the days of collecting supplier statements. We understand very clearly how a massive supplier population functions and how vital it is to maintain communication with your entire set of suppliers. No matter what type of data or structure or document you are looking to collect (e.g., supplier statement, invoice info, banking, diversity, compliance, etc); no matter how it is collected and validated; no matter how you would like it managed over time or stored for immediate retrieval at a moment’s notice; no matter what – Lavante SIM was designed to do it all! And by leveraging Lavante Recovery at the same time – we are basically working on your behalf to fund it the whole project.