Roquette America, a corn-based starch and syrup manufacturer, brought in a third party accounts payable recovery audit firm to save costs and boost its bottom line.
Roquette decided that it wanted to identify exactly how much the company was spending on transportation and logistics, IndustryWeek reports. The manufacturer wanted to hire a third-party firm to help it discover areas where profits were being lost because of errors such as duplicate payments.
"I thought it made good sense, from a finance due diligence perspective, to have our freight bills audited," Nancy Motley, Roquette's senior team leader of the accounts payable, payroll, and compliance department, told the source.
After the third-party firm reviewed Roquette's accounts payable processes, the manufacturer was able to achieve cost control and payment process improvements. This resulted in a significant amount of returns as a result of Roquette's increased ability to identify billing discrepancies. Motley noted that recovery audits are particularly helpful because they can review billings from past years and bring in lost profit retroactively. Furthermore, the company has implemented cost-cutting strategies that aim to prevent the scenarios that led to billing errors from happening in the future.
This audit is part of the company's move to a more centralized, objective, corporate-wide fiscal analysis instead of its former departmental view of budgeting, Logistics World reports.