Our client, an Oil & Gas Exploration and Production company, was facing a challenge managing its Accounts Payable (AP) and vendor credit processes.  These challenges were primarily due to inconsistent and manual AP processes, a disorganized and poorly maintained vendor master file and an overall weak control environment.  The client was also grappling with weak treasury monitoring, specifically with respect to unclaimed property, and disconnect among processes such as procurement, receiving, processing material returns and AP, coupled with a complete lack of spend visibility and decentralized procurement activities.

1. Identification and recovery of $ 2.1 million in financial leakages through the AP process.
2. Recognition of $229,000 in billing errors on a large services contract.
3. Development of a spend taxonomy and classification for all third-party spend.
4. Discovery of an additional $5.6 million in savings opportunities through sourcing of specific categories and establishing and controlling payment terms by improving the AP process and management of working capital.

How We Help Companies Succeed

Protiviti’s Supply Chain professionals work side by side with our clients to understand and address challenges and opportunities brought about by today’s complex global supply chains combined with increasing customer demands around product offerings, quality and speed of delivery.  Our AP Recovery and Procurement Assessment Solutions are designed to identify and recover financial leakage, pinpoint procurement processes and working capital management improvements, and find, reveal, disclose, discover, determine specific savings opportunities through spend classification and sourcing reviews.  

In addition to bottom-line savings, AP Recovery and Procurement assessment projects help identify process or systems deficiencies and root causes that are driving financial leakage as well as qualify and quantify potential improvement opportunities.  Our consultants have extensive knowledge of the procure-to-pay process and have extensive experience implementing the right people, process and technology changes necessary to sustain improvements in the areas of: 

1. Working capital/cash flow management
2. Spend transparency and strategic sourcing
3. Procurement and AP transaction management
4. Category and contract management
5. Vendor master file management

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