The retail industry typically comprises extensive procure to pay functions supporting complex financial arrangements between the buyer and supplier across a broad range of supplies. Tightening margins within most retail markets have placed demands on retailers to ensure value is maintained throughout the procure to pay cycle.
Our staff have considerable experience of recovering cash and enabling process improvement within the retail sector. Our solutions are designed to encompass the large variety of supplier contract terms and performance related payments and clawbacks which are unique to the retail market.
For example, a large retail chain established a defective goods program whereby a percentage discount was netted-off each invoice. However, this client had an auto-pay system in use with a small tolerance level. As a result, some supplier payments with missing discounts below the tolerance level passed for payment. Owing to the large number of transactions affected the review identified and recovered over £200,000 in missed defective allowances. The client was able to improve the management of defective discounts and recover lost revenue. More importantly, buyers were made aware of this issue and ensured that suppliers submitted invoices net of discount.