Accenture Profit Recovery and Analytics

Transcription

1 Business Process Outsourcing Accenture Profit Recovery and Analytics Delivering High Performance through Profit Recovery

2 Accenture: Delivering high performance through profit recovery Are you leaving money on the table? The race to achieve and sustain high performance is challenging enough without giving money away. But your organization could be doing just that by losing or failing to claim profits that are rightfully yours. Because of inefficient and disparate procure-topay processes, human error and pricing discrepancies, large organizations often suffer from undetected losses and overpayments amounting to millions each year. Many organizations are unaware of the extent of their annual losses from overpaying supplier invoices, or from incorrectly computing deductions and allowances. Still others are aware of the problem but are uncertain about how to take corrective action in a cost-effective manner. Needed: A holistic and proactive approach to profit recovery The sources of lost profits throughout the procure-to-pay process (see Figure 1) are complex and varied: duplicate payments, invoice errors, incorrect data entry, failure to take appropriate discounts. These and many other factors can add up to significant losses. Correcting problems and generating measurable improvements in the performance of the finance function requires a comprehensive and holistic solution. Accenture is helping organizations from every industry drive toward high performance with innovative prevention, detection and recovery services that combine people, process and technology to deliver immediately measurable results. 1

3 Figure1: Accentureholisticsolution Profit recovery services Supplier and spend analytics Cash discount management Prevention (4+ way match) Fraud risk profiling Post payment audit Procure-to-payprocess Purchase requisition Purchase order Goods/ services receipt Invoice receipt and capture Invoice match Invoice approval Payment processing A proven solution from Accenture Successfully implemented with organizations across industries and around the world, Accenture Profit Recovery and Analytics can move organizations beyond a reactive, postpayment recovery mindset to one that prevents lost profits and overpayments by using advanced analytic tools to proactively identify processing errors (such as pricing, margin protection, duplicate and erroneous payments) before payments are made. Combined with traditional postpayment recovery audit capabilities, our solution can help you increase profitability, optimize payment terms, improve working capital, tighten operating controls, enhance compliance and gain greater insight into your spending with suppliers. You can benefit from our leading-edge recovery and prevention solution at no risk because fees are entirely contingent upon results. Significant, measurable benefits realized quickly Offered as a standalone program, an ongoing service or a BPO service, Accenture Profit Recovery and Analytics can result in profit recoveries for your organization within two to three weeks. In addition to the immediate benefits our solution provides, our specialists can apply our advanced business analytics tools to help you identify opportunities for 15 to 20 percent savings within your procure-to-pay processes. Taken together, the benefits of profit recovery and process improvement can help advance your organization toward long-term, sustainable improvements in performance. 2

4 Prevent, detect, recover: The power of Accenture Profit Recovery and Analytics Accenture Profit Recovery and Analytics is based on a unique mix of sophisticated processes, proprietary software and skilled staff. We analyze your procurement and payables data to help you prevent, detect and recover the lost profits, or erroneous payments, which can result from human error, systems integration issues and contract non-compliance. In a matter of weeks, we can help you: Detect and recover lost profits and identify root cause issues Deploy unique solutions to prevent future overpayments and underrecoveries Identify opportunities to reduce and avoid unnecessary costs Highlight opportunities to improve processes and controls. Based on actual data from Accenture s work with clients, we know that the sources of profit recovery are varied, and so Accenture Profit Recovery and Analytics looks holistically across your entire procure-to-pay process to find sources of lost profits, and then to make recommendations so that such losses are less likely to occur again. 3 Figure2: SourcesofRecovery 100% Recovery totals Duplicate/ payment error 13.8% Credits 3.3% Cash/ trade discount 3.1% Pricing errors and margin protection 24.3% Rebates 25.5% Allowances 27.2% Unauthorized charges 2.8% Complexity

5 Profit recovery capabilities from Accenture: The value we deliver Accenture can help your organization drive toward high performance with a distinctive value proposition: Post-payment recovery audit With a combination of proven processes, proprietary technology and experienced personnel, Accenture can help you identify lost profits and recover overpayments. Business analytics Analysis of payables transactions locates process weaknesses and identifies opportunities to enhance your finance capabilities. Prevention of overpayments Our unique, proprietary technology toolsets can help detect and prevent vendor overpayments in real time and monitor transaction accuracy. Risk-free arrangement For recovery and prevention, we can work on a gain-sharing basis. Your organization can enjoy a risk-free engagement, with payment based on results achieved. If there is no recovery, there are no fees. Managed services and BPO options Profit Recovery and Analytics can be delivered as an ongoing service, and can also be incorporated in a full-range of finance business process outsourcing services provided by Accenture. The potential impact on performance through profit recovery and analytics is significant: Improved line item pricing accuracy Increased internal controls and contract validation Stronger Sarbanes-Oxley compliance, because all payables data is audited Better alignment of resources, enabling a clearer focus on business issues Improved cash flow and capital availability Reduced reconciliation costs and improved reporting More accurate recognition of true margins Reduced post-audit costs Improved vendor relations Significant return on investment with a short implementation period. Above all, Accenture can help your organization recover a higher percentage of lost profits than the industry average of 0.10 percent of total spend investigated. Here are just a few examples of the recovery rates enjoyed by our clients: Not-for-profit health organization: 0.14 percent of total spend investigated Global leader in eyewear: 0.17 percent Major office products retailer: 0.27 percent. 4

6 Why Accenture for profit recovery and analytics? Accenture offers your organization distinctive solutions and capabilities for procure-to-pay excellence: Advanced technology tools Our advanced and proprietary technology-based solutions help transform the entire procure-to-pay function. These tools include: Accenture Transaction Compliance & Analytics Tool Especially developed for prevention of overpayments and under-recoveries. This application enables prepayment reviews and is designed to minimize requirements for traditional postpayment audits. For more information on this tool visit TransactionCompliance. Accenture Procure-to-Pay Audit Tool This asset is a specialist post-audit recovery software application. It is commissioned to handle large volumes of complex data where there is a requirement to automate the analysis of such items as purchase orders, goods received notes, invoice line item data, allowances and rebates. Broad and deep coverage With established operations in 48 countries, we have teams ready to mobilize to meet your needs. Extensive skills and experience Our experienced professionals have decades of experience that can help you achieve high performance through profit recovery and overpayment prevention. Finance consulting capabilities Reaping the full value of profit recovery depends upon sustainable process improvements. Our Finance and Performance Management consulting professionals can help you implement and sustain the benefits of new profit recovery capabilities. 5

7 High performance delivered: Improved profit recovery for a major wireless company When one of the world s leading wireless providers instituted a program to move recovery audits in-house, the company used the Accenture Transaction Compliance & Analytics tool for testing against an historical set of data. The results exceeded expected recoveries. Using four separate sets of matching criteria specifically engineered to maximize results for the company s business model, the Accenture tool delivered results in excess of 175 percent of the provider s expectations, resulting in implementation of this proactive solution to identify and recover duplicate and erroneous payments before they are made. The company was also able to gain increased control over the workflow of claims within its system and provide enhanced detail and precision within recovery reports on the effectiveness of the process to management. The claims process itself was streamlined by reducing the number of false positives as found by the company s current systems and by focusing the efforts of the audit staff on prevention rather than recovery. How big is the profit loss problem in procure-to-pay? Here are just a few facts about financial leakage in procure-to-pay: Payment and vendor-pricing errors, as well as unrealized rebates, allowances and discounts, can cost an organization 0.10 percent or more of its total spending with suppliers. The average error rate is between one and five payments in every 1,000. Profit recovery audits uncover an estimated $5 billion+ in savings each year in the United States alone. Profit recovery as a feature of the high-performance finance function Exclusive Accenture research into the characteristics of high-performance businesses points to the essential nature of the finance function, with a 74 percent correlation between a high-performance business and a high-performance finance function. Among the essential mastery areas of finance is an efficient and effective back office. High-performance finance organizations act as a strategic business partner, while strengthening internal controls and managing risk. By helping you become proactive in your management of possible lost profits within your procure-to-pay process, Accenture can help you achieve mastery within a significant component of the finance function. 6

8 To find out how Accenture Profit Recovery and Analytics can improve your procure-to-pay process visit us at Copyright 2011 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. About Accenture Accenture is a global management consulting, technology services and outsourcing company, with more than 215,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$21.6 billion for the fiscal year ended Aug. 31, Its home page is