A global beverage manufacturer contacted Profectus regarding automated processing to simplify their complex freight expenditure processes. Manual invoice validation led to suspected errors in AUD conversion, rates, cartage quantities and duplicated transactions being missed.
Profectus Contract Compliance (CC) Technology was implemented to audit historical invoicing and payments and provide automated invoice processing and cost checking.
The challenge
Sea freight was outsourced by the client to an international freight forwarder who subcontracted to major carriers and sea freight providers. The freight forwarder conducted all cost checking and finances, presenting a single consolidated invoice to the client.
The client required Profectus to provide:
Detailed auditing of their sea freight expenditure
Future automated cost checking
The option for invoice processing into SAP
The solution
Profectus’ CC Technology automated the auditing of the freight forwarder’s invoices. The invoice data provided by major subcontractors were compared against payments and contracted rates, and the audit identified where incorrect charges and payments had occurred.
The complex consolidated freight costs were efficiently streamlined, including invoice and accrual processing into the client's ERP as required.
The result
Profectus Contract Compliance Technology was able to efficiently identify 3.05% of total overcharges for the beverage manufacturer, largely due to manual processes and human error.
CC Technology identified overcharging and incorrect invoicing in several areas:
Incorrect Forex Rates were applied, resulting in AUD conversion overcharges
Incorrect quantities and misroutes lead to duplicate transactions for routes and consignments
Incorrect quantities lead to overcharges in cartage
Incorrect freight charge rates passed on to the client for contracted item
Recommendations to the client
This CC technology as well as additional features provided by Profectus will assist the client in all future contracts and transactions. These include:
Automated compliance checking of complex contracts
Automated cost checking and invoice processing for future freight expenditure
Low-level invoice data management
Spend optimisation reporting: BI dashboards to assist with all future contracts & transactions
To hear more about these case studies or find out about our approach to audit and financial recovery, click the link below.
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