- Case study
Curbing cash leakage to save millions in supplier overpayments
A post-payment audit solution delivers more recovery for a major retailer
A US-based retail corporation that operates a chain of hypermarkets and departmental stores.
A post-payment audit (PPA) program that recovers the maximum amount of lost revenue and minimizes future leakages.
We built a solution to support and manage the ongoing payment recovery process while doing the research for and construction of the new system for optimized recovery.
By the end of the first year, the company recovered $26 million in overpayments, compared to $15 million the year before, a 73% improvement year-over-year.
Challenge
The retail industry is prone to supplier overpayment and eroding margins. To minimize leakages and improve recovery from suppliers, the client had an existing post-payment audit program in place, managed by a leading third-party PPA provider. However, even after performing multiple audits, its PPA program at the time posed the following issues:
Solution
Genpact stepped in to assess the end-to-end PPA program and identified four key priorities to tackle. Keeping these priorities in view, the Genpact team took the following steps to transform the PPA program:
Impact
By helping the company transform the PPA process, it's now in a better place to drive initiatives that lead to business growth. Here are some of the most impactful achievements Genpact has delivered for our client:
Perhaps the strongest indication of a job well done is being asked back to do more work. Genpact's success on this project has led to an enhanced scope of work encompassing other avenues of recovery with the retailer.