Posts Tagged ‘SIM’

Exploring Fraud in the P2P Environment

Wednesday, August 19th, 2015

All Companies Suffer from Fraud

Companies of all sizes across all industries are at risk of fraud from internal and external sources.  One asset in particular that suffers significantly from the risk of fraud is the master vendor file.  For most companies, the population of vendors and suppliers is so massive, complex, and multi-faceted that the ability to prevent the presence of fraud is nearly impossible.

The precise cost of fraud throughout the United States is impossible to measure. However, many experts believe the cost of fraud has climbed well into the high multibillion-dollar range. The Association of Certified Fraud Examiners estimates the cost of fraud in U.S. organizations at 7 percent of annual revenues, or $994 billion.  Think about the impact on your company – by these estimates, for every $1 Billion in annual revenue, your company is losing $70,000,000 per year.   The unfortunate reality is that the information populating your supplier database is one of the most vulnerable and potentially least controlled assets that your organization has.  This decisive set of data is at the hub of many critical departments (Accounts Payable, Purchasing, Strategic Sourcing, Tax, Legal, GRC, Finance and more) that are meticulously governed by various complicated external regulations.  Suffering from fraud within your supplier population will cost your company significantly in terms of reputation damage, negative press, lost time, missed opportunities, and much more.  And as we explored above – fraud can be  costing your company millions of dollars every year.

Lavante Fraud Protection

Lavante has built in a series of controls in their suite of Supplier Information Management (SIM) solutions that can identify, manage, and prevent the incidence of fraud throughout a company’s supplier records.  To do this, Lavante leverages enhanced controls and configurable workflows surrounding your vendor master setup and maintenance process.  By defining rules and governance controls at the master level, Lavante is able to minimize avoidable risk across all downstream transactions and business decisions.  With Lavante, companies have a pre-emptive and proactive defense against risk and fraud in many forms.

Lavante can support all functions and areas throughout the P2P process including Accounts Payable, Purchasing, Strategic Sourcing, Tax, Legal, GRC, Finance and more.   Customers can capture and manage information specific to their needs to monitor risk factors such as business inception date, annual revenues, employee base, disaster recovery, business continuity, ethics policies, diversity, insurance coverage and levels, and more.

Where does Lavante Fraud Help?

1) Core Data Analysis

Lavante begins every SIM deployment with an in-depth vendor file cleanse and rationalization which will immediately enrich existing supplier information for better data visibility and increased supplier intelligence.  The service will also provide decision analytics to support inactivation of old accounts to mitigate erroneous payments to incorrect or non-existent accounts.

The system software will then identify potentially duplicate or related suppliers which will significantly aid in the prevention of duplicate, erroneous and fraudulent payments.  In addition, Lavante will search suppliers against employee records and other databases to identify incidences of potential fraud.  The identification of related parties will also reveal potential parent-child, associate, affiliate, subsidiary, shared/co-ownership relationships; identify potential areas for conflict or leverage.

As suppliers continue to use the Lavante system to onboard and/or update data, the same automated reviews will continue to run against the new data to continually ensure against outside entities inputting fraudulent data.

How can this help me?

Core data is the most basic element of the supplier record and among the simplest to access for fraudsters.  You do not need to look very hard to find examples of this.  Let’s take employees for example:  The U.S Chamber of Commerce estimates that theft by employees costs American companies $20  - $40 billion per year.   Their report also states that an employee is 15 times more likely than a nonemployee to steal from an employer. Unfortunately, 75% of employee-related crimes go unnoticed.

Lavante SIM offers very simple but powerful tools to monitor employee fraud and prevent this type of otherwise unseen loss.

2) Certification Management

Lavante’s certification management allows clients to determine key certification AND key certification attributes, such as certification numbers, document numbers, materials classifications, company/employees size and much more.  Where possible, this vital information is matched against third party databases to ensure that suppliers have categorized themselves correctly and that that has successfully completed all necessary information to complete their certifications.

The intelligent certificate management and communication engine enables advanced notification of documents reaching expiration allowing customers to stay ahead of expiring documents. This can be done for any document or certification including, but not limited to certificates of insurance, diversity, small business, ISO, contracts, W9/W8 forms, or any customer-specific requirement.

How can this help me?

Fortunately, there are many different regulating bodies that are interested in identifying and stamping out fraud.  In the pursuit of these goals, multiple regulating bodies have created a number of certifications that will help ensure the standing of a supplier as a well-intending entity.  Lavante’s Certification Management gives enterprises the near unlimited ability to vet their suppliers against the data resident in these third party databases to ensure that you are only working with approved and accredited companies.

3) Validations You Can Trust

Lavante’s portfolio of supplier self-service and 3rd party validation points help protect our customers against all forms of identifiable fraud and risk.  Below are just a few areas where Lavante validation services will help protect clients:

  • Validating TIN will reduce the risk of fraudulent payees, IRS B-notices, and potential IRS penalties
  • Validating TIN enables the ability to check against OFAC and similar lists
  • Capturing W9/W8 forms to adhere to the IRS documentation and expiration requirements (note: Lavante SIM meets the IRS definition of e-signature)
  • Validate USPS address to mitigate against erroneous and fraudulent vendor accounts
  • Validate banking information, both account and routing information; through validating the ABA and that the account exists within this ABA, we can determine with high certainty the validity of the account

How can this help me?

Lavante offers a wide range of validation services against a near unlimited set of data and documentation.  These services perform as both validations and/or screenings against databases.

Validations are important to assess the validity of data; in the most extreme cases – fraudulent entities can attempt to issue blatantly false data such as providing a false bank account that will re-direct funds to the wrong parties.  With the ongoing vigilance of Lavante validation services on Lavante SIM, companies can rest assured that the companies they do with are not attempting to send incorrect data

Screening is vital to ensure that companies are not doing business with any entities that have appeared on government watch lists.  In a very relevant example; companies across the U.S. are constantly asked to ensure that they are engaging in any commerce with firms that appear on the OFAC list.  Failure to perform this screen can result in heavy fines and even jail time for executives of the transgressing companies.  In the last few years alone the U.S. treasure has levied billions of dollars in fines to companies across all industries. Lavante Validation services can set validations and screens in place and schedule them to run at key intervals to ensure your protection against many different forms of fraud and risk.

To learn more about the Lavante Solution request a demo visit the Lavante SIM web page call James Davies at: 408.841.5189

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Your company is at risk for severe fines and penalties

Tuesday, March 3rd, 2015

The Office of Foreign Assets Control administers and enforces economic sanction programs primarily against countries and groups of individuals, such as terrorists and narcotics traffickers. These sanctions can be either comprehensive or selective, using the blocking of assets and trade restrictions to accomplish foreign policy and national security goals. The U.S. government has become increasingly proactive in the last couple years identifying and penalizing U.S. companies that are engaging in commerce (willingly or otherwise) with any blocked companies, groups or entities. The fines for violations can be substantial; criminal penalties for violations can include fines ranging up to $20 million and imprisonment of up to 30 years. 

Who is at risk?

The very simple truth is that every corporation is at risk of working with service providers that have been sanctioned by OFAC. In the last two years alone, over 50 U.S. companies have been found in violation of OFAC regulations and have, as a result, been penalized and fined severely. In total, over $2.5bn in fines has been collected from the transgressing U.S. companies. Although the incidences of cases tilts towards the banking sector, these violations cross all industry segments and have affected companies in many verticals, including manufacturing, technology, transportation, energy, and many others. The incidence of cases is not a “once per year” effort either, but rather, case activity is significant throughout the entire year. In 2014, the average fine per company (with outliers removed) was $11 million.  

Is your company at risk? As a matter of doing business, your corporation must buy goods and services from third party sources; the process of vetting your entire population of third party providers is a daunting task to say the least. Even if you are unaware that you are doing business with a company on the OFAC list, and even if you would stop doing business with a sanctioned supplier immediately upon learning their status, you are still at risk. This risk is significant and includes the threat of fines, reputation damage and even jail time. As evidenced in many of the cases from our survey

How can you protect yourself?

Protecting yourself can make all the difference! The majority of companies fined since 2012 had little or no OFAC controls in place, and they directly suffered as a result. Fortunately, there is a simple solution to eliminate your company’s risk, and to avoid doing business with disreputable, government sanctioned organizations. Lavante offers a simple on-demand solution that continually monitors your vendor file against the OFAC watch list. All potential matches from your supplier population are delivered to your specified parties directly through a configurable work-flow queue to help guide your end users through proper identification, disposition, and reporting.

Lavante’s OFAC monitoring capabilities can be sold as a stand-alone module within the larger Lavante SIM application – or it can be deployed as part of a complete suite of monitoring and compliance tools. Our suite of OFAC compliance products to market over 8 years ago, Lavante has helped hundreds of clients review millions of suppliers and thousands of potential matches. With the tools and support Lavante provides, our clients have never suffered a single inquiry from the U.S. Treasury pertaining to OFAC or any other watch list. Contact Lavante today and discover how you can achieve the same peace of mind.

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

Thursday, May 8th, 2014

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 other.  This P2P mindset threads procurement and payment activities into one continuous lifecycle.

With this in mind it is a worthwhile to consider the details of the entire cross-functional process.  At the front end, one will encounter any number of sourcing and procurement activities where highly trained professionals are chartered to identify the best possible suppliers to buy the best possible products or services at the best possible cost of ownership.  At the far end of the P2P lifecycle, one will encounter Accounts Payable (AP) department whose goal, as told to me by one industry expert, is very simple, “To pay the right entity, the right amount, at the right time.”  This is a simplification of course, but generally, all professionals in the space are pursuing some combination of these stated objectives.

Typically these departments are measured, evaluated and guided through an exhaustive suite of metrics.  A number of sophisticated software applications and service providers stand ready to review, in fine detail, how efficiently resources are being spent across commodities, geographies, business units and supplier types.

Having been a practitioner in this space, I can tell you that even though the concept is simple, AP departments face a number of external factors that constantly challenge their ability to achieve transactional perfection.  As a result, the last decade has seen the emergence of “supplier statement audit” which routinely reviews the transactional (read: payment) history of the enterprise to determine the efficiency of the supplier payment processes.  For too long such supplier statement recovery auditing has been confined to the AP suite as a tool for improving the efficiency of Accounts Payable.  With increased focus on the broader P2P process, supplier statement recovery audit results should be more frequently evaluated by the procurement professionals in the context of the larger supplier management process.

There are many benefits to combining supplier statement audit results into the associated procurement metrics, such as supplier scorecards or spend analytics.  Procurement departments have as much or more to gain by evaluating the results of the recovery effort as do AP departments.  Here are just a few ways procurement can gain from incorporating a review of statement audit results:

      • Statement audits can reveal profit leakage, which procurement needs to understand in order to assess larger budgeting or savings opportunities that may exist.
      • Analysis of recovery claims can reveal valuable  insights that will better inform future procurement activities, such as  overlooking the related nature of separate suppliers and missing out on pricing  discounts.
      • Procurement can identify suppliers that routinely  commit transactional errors and incorporate those suppliers’ lack of accuracy in  the supplier scorecard for a more holistic supplier evaluation.

As a best practice, build in a process to review supplier statement audit results before your next supplier strategy review.  It will provide important insights for managing suppliers.

I would welcome your thoughts on this topic.

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Lavante Inc. Taps Alan Park as SVP Sales

Tuesday, November 19th, 2013

Former Executive from Trimble, Openwave and PINC Solutions brings SaaS enterprise expertise

to the leader in cloud-based supplier management and recovery audit solutions

SAN JOSE, CA – November 19, 2013 – Lavante, the leading provider of cloud-based supplier information management (SIM) and audit recovery software for Fortune 1000 companies, announced today that Alan Park has joined as SVP of Sales. With more than 25 years of sales management experience in growing enterprise solutions and services businesses, Park will lead the build out and management of the global field, inside sales, account management and channel sales teams.

“Alan is a seasoned enterprise SaaS sales executive who has worked successfully to expand the customer base and revenues within a number of startups and larger companies selling to the enterprise,” said Sam Klepper, CEO and President of Lavante. “We are excited to have someone of Alan’s caliber share our vision of the future and join the team.”

Mr. Park’s experiences include EVP Sales & Marketing at PINC Solutions, SVP Global Sales at Openwave, and VP & GM at Trimble Navigation in addition to Sybase and IBM.  He is well-versed at winning Fortune 1000 clients, developing strategic partner alliances and expanding internationally.

“Lavante is delivering significant value in the enterprise by automating an area of supplier management that has been done mostly by manual means to date,” said Park. “There is a major market opportunity to help corporations reduce risk and enhance productivity with supplier qualification and compliance – and Lavante has an easy to use, quickly deployable solution that does exactly that.”

Mr. Park has a B.S. in Finance from Oregon State University and served as a US Navy nuclear engineering officer.

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Lavante Inc. and Estuate Partner to Automate Supplier Management with Oracle ERP Systems

Wednesday, September 4th, 2013

Technology partnership speeds up onboarding of new suppliers while
enabling real-time changes to the vendor master file

San Jose, CA and Sunnyvale, CA – September 4, 2013 – Lavante Inc., the leading provider of SaaS-based supplier management and profit recovery solutions, and Estuate, a global IT services company and Oracle Gold Partner, today announced a technology partnership designed to help Fortune 1000 corporations using Oracle-based ERPs accelerate onboarding of new suppliers and keep the vendor master file up-to-date.

 Under terms of the agreement, Estuate will be the preferred integrator for Lavante deployments involving Oracle-based ERPs.  The integration enables real-time or batch-loaded data exchange between Lavante SIM™, the leading SaaS supplier management software that collects, validates and stores all information required for supplier onboarding and vendor file maintenance, and Oracle ERPs including Oracle, Oracle Fusion, JD Edwards and PeopleSoft.

“Systems that collect supplier data sit outside the ERP and the data is often incomplete or out-of-date”, said Sam Klepper, CEO and President of Lavante Inc. “The partnership between Lavante and Estuate enables customers to automatically collect accurate vendor data and seamlessly pass a required subset to the ERP facilitating transactions and strategic finance projects such as check-to-ACH conversion.

“We are seeing growing demand for Oracle ERP integrations involving supplier data”, said Prakash Balebail, CEO and Founder of Estuate.  “Our partnership with Lavante provides the real-time data customers need to speed up supplier onboarding and vendor file maintenance.”

The companies will jointly host a webinar on September 17th at 10am Pacific Time entitled “Secure Vendor File Management and Cleansing using the Oracle Family of ERPs” and can be found on the Lavante website at

About Lavante

Lavante is the leader in SaaS (software-as a-service) supplier management solutions, including supplier information management and recovery audit applications.  Fortune 1000 companies rely on Lavante to reduce the time and cost spent managing suppliers, drive ongoing compliance with regulations and automatically create an enterprise-wide single source-of-truth for supplier data that is constantly updated.  Headquartered in San Jose, California, Lavante is privately held and was founded in 2001.  For more information, please visit

About Estuate
Estuate is the world’s leading specialist in ILM for Oracle-based applications, both package and custom. We use IBM Optim Solutions in our implementation of ILM for Oracle E-Business Suite, Oracle Siebel CRM, Oracle PeopleSoft, Oracle JD Edwards, other Oracle industry application packages and custom applications on Oracle databases. We have successfully implemented IBM Optim Solutions for over 150 clients worldwide across a wide range of industries, sizes and platforms.


Chris Smith

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Lavante Enhances Compliance and Risk Management Capabilities for Leading SaaS Supplier Management Application

Monday, August 19th, 2013

Lavante SIM™ upgrade adds new workflow approval process, audit trail and e-Signature capabilities

 SAN JOSE, CA– August 19, 2013 – Lavante Inc., the leading provider of on-demand supplier management and profit recovery solutions, today announced the availability of enhanced compliance and risk management capabilities in Lavante SIM™, the industry’s most comprehensive application to collect and validate supplier data for onboarding and ongoing vendor management. Delivered in a SaaS model (software-as-a-service), Lavante SIM enables companies to dramatically reduce the cost and time of onboarding new suppliers, managing current suppliers, and driving compliance and control throughout the entire lifecycle of the supplier.

Lavante SIM now includes a structured workflow approval process that ensures proper segregation of duties for each person or role in the supplier onboarding and payment process.  This level of control minimizes the possibility of fraudulent activity and notifies internal participants when they have tasks to complete.  The Lavante application now includes a complete audit trail of supplier information changes to be able to track what changes have been made, by whom and when they occurred.  The system also now includes e-Signature capability to permit suppliers to legally acknowledge acceptance of contractual terms and conditions, and store the resulting documents in a secure, centralized repository within Lavante SIM.

“Many corporations are not fully protected against fraudulent activity in the procure-to-pay process”, said Mary Schaeffer, Editorial Director and Publisher of AP Now and Tomorrow and author of 101 Best Practices for AP. “Lavante’s new enhancements enforce the proper controls and segregation of duties to prevent fraud in supplier management as well as ensure organizations are in compliance with government regulations.”

“Fraud prevention and regulatory compliance are two of the top concerns of AP and Procurement professionals who manage vendor files,” said Sam Klepper, CEO and President of Lavante Inc.  “This latest upgrade to Lavante SIM reflects our commitment to helping these professionals lower risk in their organizations through proper controls.”

About Lavante

Lavante is the leader in SaaS (software-as a-service) supplier management solutions, including supplier information management and recovery audit applications.  Fortune 1000 companies rely on Lavante to reduce the time and cost spent managing suppliers, drive ongoing compliance with regulations and automatically create an enterprise-wide single source-of-truth for supplier data that is constantly updated.  Headquartered in San Jose, California, Lavante is privately held and was founded in 2001.  For more information, please visit



Chris Smith

(408) 841-5034

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Benefits of Supplier Master Data Management | MDM Systems

Tuesday, March 19th, 2013

Large Data systems these days depend on the quality of data we feed them. Optimizing supplier relationships and ERP system effectiveness ultimately rely heavily upon our ability to collect timely accurate information. Too many times across our businesses the data that has been received from suppliers decays and leaves us with useless information for us to look at when we are trying to make decisions.

Accurate supplier data drives system effectiveness and saves time, resource, and dollars. Large volumes of data across multiple systems and departments, along with data decay are challenges to maintaining quality supplier data. Up-to-date supplier information is critical for compliance with regulations and controls, such as OFAC screening, diversity tracking, and new tax legislation.

Lavante SIM: On-Demand Supplier Information Management as a Strategy.

Lavante SIM enables companies to proactively communicate with suppliers and gain real-time visibility into suppliers and relationships. Lavante SIM drives compliance across the supplier lifecycle–from initial vendor master file cleansing, to on-boarding, to ongoing maintenance. Set important Vendor Master Controls and let the Lavante software manage your communications.

Lavante On-Demand Supplier Master Data Management

Drive master data compliance & insight across the supplier life cycle:

  • Core Supplier Data
  • Tax Information
  • Ownership & Diversity
  • Supplier Classification
  • Insurance & Risk
  • Financial Information
  • Contract Information

 Create an enterprise-wide single source of truth for supplier master data:

  • Ensure quality of supplier data
  • Gain insight into your suppliers and relationships
  • Drive compliance with regulations and internal controls
  • Drive corporate compliance with new 1099 Tax Legislation
  • Reduce supplier risk
  • Reduce cost of managing supplier information


Why Lavante Supplier Information Management?

  • Quick Time to Value: On-demand, “out-of-the-box” with immediate results 
  • The Highest Supplier Compliance: 8X results of alternative solutions
  • Ongoing Communication: Drives supplier participation and data quality
  • Funded by Recovery:  Works seamlessly with Lavante Recovery

Benefits of Supplier Master Data Management | MDM Systems | MDM Strategy

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Automatically Requesting and Collecting Certificates of Insurance from your Suppliers

Tuesday, March 12th, 2013

Requesting, collecting and managing the expiration of insurance certificates is an important process for any organization.

Most corporate risk departments today require a current insurance certificate be on file before any work is performed by a supplier whether that supplier is a contractors, subcontractors, tenant, or material vendor.

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Automate Requesting and Collecting Certificates of Insurance

It goes without saying that Certificates of Insurance are critical to ensure an organization does not face an unexpected liability due to the negligence of an uninsured or under-insured third party however many of us do not have adequate controls to our certificate collection processes.

Lavante SIM has the ability to request up to date Insurance certificates from all of your suppliers. The application will automatically store the documentation that are collected and provide for automated work flow to follow up with suppliers when the Insurance certificate has expired.

Click HERE to download a white paper written by the Institute of Financial Management on Best Practices for Supplier Management.

If you would like to test drive the Lavante Supplier Information Management application access is simple, just click HERE

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The Institute of Financial Management IOFM Webinar Vendor Management Automation Survey Results

Wednesday, February 6th, 2013

IOFM Webinar Vendor Management Automation Survey Results

   IOFM Webinar:  Vendor Management Automation Survey Results

Date: February 7, 2013
Time: 10:00 AM PT   1 :00 PM ET
Duration: 1 Hour


Register NOW

Join us for this one hour interactive webinar to help make your AP department more successful in 2013.  The Institute of Finance & Management (IOFM) recently surveyed finance professionals, including accounts payable department managers, supervisors and controllers, to learn about the level of automation in their organization’s accounts payable department, specifically focusing on the tasks related to vendor/supplier management.

This webinar analyzes the state of vendor management in accounts payable departments today, the perceived benefits of utilizing an automation solution, and the difficulties and obstacles for an AP department that wants automation solutions implemented.

Attend this webinar to learn:

  • The state of vendor management in accounts payable departments today
  • The perceived benefits of utilizing an automation solution
  • The difficulties and obstacles for an AP department that wants automation solutions implemented

You will also get a sneak peak into the Lavante Supplier Information Management application where you will see an automated solution for managing suppliers that is within reach.

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Lavante and Spend Matters Look at How Dirty Vendor Data Impacts Your Bottom Line

Monday, June 27th, 2011

Dirty DataThe topic of “dirty data” is certainly becoming more important in the Procure-2-Pay (P2P) space. As companies look for ways to further optimize their daily transactions and drive costs from their processes it becomes apparent a key blocker in the pursuit of excellence is the prevalence of “dirty data” throughout the supplier population. Of course the phrase “dirty data” is a little open ended; a more accurate reference to the problem would be outdated (or incorrect) vendor contact data, duplicate vendors and unidentified vendor relationships. Any of these otherwise unseen elements can strain the transactional process and create oversights in the purchasing process.

This week’s webinar The Dirty Little Secrets of Dirty Data jointly presented on Tuesday the 28th by Jason Busch of Spend Matters and Lavante aims to unveil the many different ways that dirty and omitted data in your supplier population can cost you significant dollars. Jason, Senior Editor of Spend Matters, will discuss from a high level how purchasing and payment challenges bubble up as data decays overtime. Lavante will follow by looking at, in very practical terms, how supplier recoveries are linked almost entirely to the presence of bad data in the supplier population.

By viewing the webinar you will understand a little more about the risk your company faces as well as learn ways in which you can combat that risk and prevent profit leakage.

Join us at the webinar, or check back to see the recorded on-demand presentation.

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