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 Connect’s Recovery Audit is the industry’s premier statement audit product. The Lavante Connect application and services are built on the industry’s most powerful platform for communicating with suppliers, collecting AR data, discovering credits and delivering recoveries to clients. Lavante Connect targets the entire addressable supplier population without bias and commonly achieves compliance rates above 90%. It is systematically impossible for any other competitive statement audit process to out-recover Lavante’s process.
Lavante’s outreach includes initial and ongoing requests for AR data as well as follow up requests for non-compliant suppliers. Follow-up requests alternate by email, fax, mail and phone to maximize exposure and response rates. Lavante electronically archives all incoming documentation and data per supplier per client for retrieval at any time. Dedicated auditors review all documents for potential credits and communicate directly with the supplier to secure written verification of all claims. Recoveries are delivered to clients via an on-demand application in weekly batches accompanied by supporting documents and communication detail.
Based on ten years of benchmarking, Lavante has determined that 61% of credit-generating suppliers are distributed throughout the lower 80% of a company’s addressable vendor master file. Through their expansive review, Lavante delivers clients between $600,000 and $900,000 per every $1 Billion audited. In addition, Lavante delivers a complete suite of supplier reports and best practice recommendations for vendor file management.