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.