Contract compliance audits and recovery services are designed to recover excess payments made to suppliers by performing detailed audit analytics and substantive assessments of such vendor payments. Spend leakage in the form of duplicate payments, incorrect rates applied, excess billing for material or services not used, allowances, advances, and returns not factored, and discount misses are a significant issue for many companies. Leakage and recovery values may range up to ~5% of the spends in question. Companies are often unable to identify and address root causes, leading to repeated undue payments to suppliers.

Genpact helps identify and recover these excess payments (leakage) made to your vendors through our contract compliance audits (also commonly known as duplicate payments audits),as part of our overall Contract Audit & Recovery Services.We leverage our 15years’ experience in applying Lean Six Sigma principles to Finance & Accounting (F&A) operations along with our strong audit and audit analytical capabilities and tools to help you identify the source of leakage. This is often due to inconsistent processes and systems used across multiple geographies, non-standard payment terms, manual processes, inadequate vendor-provided documentation, significant and voluminous data provided by vendors but not adequately reviewed, and capacity constraints within internal teams.

With more than 17,000 F&A professionals across 30 countries, Genpact has the largest F&A outsourcing practice in the world. Respected analyst firms such as Gartner, Everest, and Forrester consistently award us top rankings for our ability to effect true Finance BPO.Our Risk and Consulting Center of Excellence employs over 400 professionals (CAs, CPAs, CIAs, CFEs, CISAs, etc.) to bring you specialized audit and audit analytics capabilities.

Our approach to contract compliance audits addresses the root causes of leakage, unlike traditional vendors, which have limited incentives to stop and prevent future cash leakage. Whether the goal is to accurately track eligible discounts, eliminate duplicate payments, ensure contract terms are met, or to reduce mismatches in labor hours, wages, and other details, our Lean Six Sigma-driven approach leverages both our proven Smart Enterprise Processes (SEPSM) framework and the audit and audit analytics expertise of our fully owned subsidiary, Axis Risk Consulting. Our solution has reduced revenue leakage 15-20% year over year and driven 2-3% increases in cash flows.

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Genpact leverages the deep expertise of our fully-owned subsidiary, Axis Risk Consulting, to put more than 150 years of experience at Big 4 accounting firms to work for our clients. We combine independent audit capabilities with the largest F&A practice in the world to bring a proven combination of business process optimization experience and deeply focused accounting skills to each engagement.

Our unique approach to contract audits and recovery services combines audit experience, sophisticated audit analytics, and process re-engineering to eliminate sources of leakage and recover excess payments. Our Smart Enterprise Processes (SEPSM) methodology, built on our ingrained Lean Six Sigma heritage, uses a combination of “smarter” analytics, processes, and technologies to eliminate operational silos and ensure standardized end-to-end processes that drive compliance, reduce leakage, and lower cost. Among the technologies we bring to bear are the Business Process as a Service (BPaaS) solutions of industry-leading technology provider Oversight.

Genpact’s Contract Audit & Recovery services are aligned to help you with:

  • Process Diagnostics for identifying causes of cash leakage
  • Audit processes that provide thorough and shortened audit cycles for timely and increased recovery
  • Recovery processes and strategies for collecting outstanding amounts from suppliers
  • Process Transformation for improving the processes responsible for leakage

Our detailed methodology includes:

detailed-methodology

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Why Genpact Axis Recovery Audit Services
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Industries we serve:

  • Manufacturing
  • CPG
  • Retail

E-mail id: Please contact us for more information recovery.audit@genpact.com

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Our sophisticated analytics, process expertise, and long experience in contract audits, duplicate payments audits,and recovery audit services deliver measurable results:

Genpact identifies claims aggregating $27 million across five vendors for non-compliance with contractual T&Cs
One of the world’s largest energy companies had a huge volume of transactions billed through monthly consolidated invoices, with many monthly invoices containing 500 to 2,000 line items. Contract values ranged from $500 million to $1 billion over multiple years. However, the client lacked an adequate mechanism for reviewing the accuracy of invoices at a manageable cost. Genpact reviewed all of the client’s contracts, amendments, and purchase orders to create a Rate Master, then developed invoice analytics and tests based on key risks identified from the contracts. By recalculating volume discounts and rebates and reconciling payment details to supplier invoices, Genpact’s recovery audit solution for this client identified $27 million in claims from five vendors and generated around 30% in cost savings compared to traditional vendor and payment audits. This included travel costs saved, as the solution was provided by a team based remotely in India.

Recovery Audit Services return €40 million in leakage caused by promotional pricing flaws
One of the top 10 European retailers experienced challenges with promotional pricing agreements due to communication flaws between Purchasing, Logistics and Financial Administration. There was also a weak underlying framework in its vendor contracts and a sub-optimal promotional pricing process. Together with the client, Genpact conducted an on-site review to diagnose the promotional agreements process, identify communication problems, and create a system for monitoring promotional pricing arrangements. Our solution resulted in €40 million in recovered funds between 2007 and 2011. We improved the client’s internal process success to approximately 70%, reduced the workforce required, and improved internal and external communications.

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