Global miner BHP engaged Profectus to audit key contracts for financial compliance against contract terms including the following key categories of spend:
- Contract Labour
- Service contracts
- Equipment contracts
- Freight contracts
- Maintenance contracts and
- Facilities Management contracts
The client was concerned about the level of overcharging especially given their level of their spend.
Having job sites across the globe and dealing with local suppliers creates invoicing and compliance challenges that the client wanted to put a more robust framework around.
Profectus implemented an ongoing compliance framework that reviews historical invoices and validates future invoices pre-payment. Some of the solutions Profectus implemented included:
With low-level data from the contract and invoice, the potential for human error was removed
Better decisions are made with more data available and deeper levels of visibility via a data feed into BI dashboards
Significant Grocery retailer automates cost checking with CCS
Our client is a Grocery retailer with over 800 stores and employs more than 100,000 employees.
Our client was looking to improve the manual and ad hoc checking of invoices against contract terms for key non merchandise vendors to prevent overcharges and overpayments.
Profectus had been working with this retailer since 2003 providing audit and compliance services.
In March 2011 our client licensed Profectus' CC technology to automate the checking of invoices against contract terms for key non merchandise contracts.
The Contract Compliance system has enabled contract management, full line item rate and service checking, and KPI reporting. In addition to invoice checking, our client has automated the accrual processes and vendor queries with the Contract Compliance system.
Leading Global Bank chooses Profectus’ Audit Services
A leading Bank, headquartered in London, is a global organisation serving customers worldwide from around 6,600 offices in over 80 countries.
The bank provides financial services through a network of 36 branches and offices in Australia alone.
The bank sought an external audit partner to test internal controls across its historical invoice payment transactions.
The bank wanted to benchmark its own performance against future audit results post implementation of their offshore processing house.
The bank also sought to identify opportunities to further improve controls within their Accounts Payable environment.
The leading bank selected Profectus as its audit partner to complete a review of all Accounts Payable transactions.
The Accounts Payable audit included a recovery function driving financial returns back into the business as well as providing the bank with practical recommendations to modify processes and improve controls within the new accounts payable environment.
The Accounts Payable audit projects deliver year on year health checks to the leading Bank ensuring they remain benchmarked among Australia's leading organisations.
RDM in the Agribusiness Sector
Ruralco is a leading Australian agribusiness with more than 40 specialist businesses operating across 500 outlets throughout regional Australia. Ruralco provides real estate, insurance, auctioneer services, agricultural equipment and other services and is ASX listed.
Their annual revenue exceeds $1.8 billion and its rebate management requirements are complex both from suppliers’ and members’ perspectives. Ruralco implemented Profectus' Rebate and Deal Management technology (RDM) in 2017 to automate all rebate management.
Prior to engaging Profectus, Ruralco had set up both supplier and member rebates in SAP.
Their rebate management process was:
Very labour intensive and time-consuming
Ruralco had to manage over 120,000 agreements in SAP – when a supplier agreement changed, all member agreements (over 500) had to also be updated
Not fully automated
Rules such as tiered sales incentives were not automated and manually calculated and processed
Profectus’ RDM automated the entire rebate management process previously setup in SAP for Ruralco.
RDM automated all supplier and member agreement rule types including the majority of tiered sales incentives
Automated the link between supplier agreements and claims and member agreements and payments
Provides Ruralco a consolidated income and related member payments reporting view previously not available
Global Manufacturers’ choice of audit partner is Profectus’
A global manufacturer, with a 150 year history in Australia servicing local and international companies.
Products and services spanning across multiple industries.
The global manufacturer identified opportunities to further reduce financial leakage through regular external audit practices as an extension their internal audit and AP functions
In addition to the Accounts Payable audit, further opportunities existed within the invoice detail. The manufacture was looking for a way to monitor charges at line item level against contracted terms and rate cards in place with their vendors.
Historically, indirect vendors such as telecommunications, utilities and waste had been hard to manage at such minute detail.
In March 2009 this global manufacturer engaged Profectus to conduct its regular Accounts payable audits. More recently, the engagement was extended by implementing the Profectus Contract Compliance Solution across 10 of its key indirect spend vendors.
The Accounts Payable Audits were implemented on a quarterly data feed enabling the following benefits:
- regular performance reporting and statistics
- greater financial inflows
- the ability to modify system and procedural effectiveness quickly to prevent future errors
The Contract Compliance Solution has provided the global manufacturer with:
- cost recovery on identified errors at line item level
- contract optimisation through identification of out of contract spend.
Major Australian Retailer
The Office Supplies retailer has over 150 stores selling print and copy, technology, furniture and stationery.
Our client had been working with Profectus since 2003 to provide a full range of audit services.
Our client was seeking a compliance technology to automate the cost checking of all supply chain/freight invoices and processing of invoices into SAP.
Our client licensed Profectus CCS technology to fully automate cost checking and invoice processing.