Manufacturing firms face unique challenges in payment accuracy and process optimization due to complex supply chains and a vast number of vendors. A major motor vehicle manufacturer initially sought to optimize their accounts payable processes with PRGX through a US-focused recovery audit. This evolved into a comprehensive global initiative that uncovered significant process improvement opportunities, leading to lasting value creation.
$16M
Recovery Savings
(Recent Audit)
$98M
Total Savings
(Realized in 6 Years)
Challenge: From Local Recovery to Global Audit Contract Compliance
When the US AP recovery audit revealed systematic issues in pricing management and ERP controls, the scope expanded to include contract compliance auditing and eventually grew into a global AP recovery initiative. The complexity of managing retroactive pricing programs across multiple regions demanded a more comprehensive approach.
Solution: Deep Process Analysis Leads to Significant Recovery and Lasting Improvements
PRGX’s detailed analysis from the AP Profit Recovery audit uncovered major internal process and control issues, particularly in the client’s Evaluated Receipt Settlement (ERS) process. The investigation revealed significant discrepancies in ERP price file management, with timing and accuracy issues leading to substantial recovery opportunities. The retroactive pricing audit alone identified millions in recoverable spend.
The implementation delivered:
- Comprehensive best practices and detailed procedures for price maintenance
- Significant reduction in pricing errors through improved processes
- Rolling audit program providing continuous improvement feedback
PRGX delivered a comprehensive solution combining AP Profit Recovery to identify and reclaim payment errors with Contract Compliance to ensure accuracy of contract terms and improve processes that deliver future cost savings. The motor vehicle manufacturer was able to achieve $16M in recovery savings due to this audit but ultimately realized $98M in total savings over the last six years.
Go Beyond AP Recovery and Transform Process Controls with an Intelligent Audit
PRGX helps organizations unlock hidden value through comprehensive audit solutions and process improvements. Our proven methodology not only recovers lost spend but also strengthens underlying processes to prevent future leakage.
From AP Profit recovery to Contract Management, PRGX combines technology-driven solutions and decades of expertise to help you improve the financial health of your organization.
Chat with our team of experts about your goals and or watch a demo to see our solutions in action.
How Much Can You Recover?
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