Can Spend Recovery Reviews generate a much needed financial windfall?

Twice2much discuss how Spend Recovery reviews, based on a ‘share of recoveries’ only, can help ease current financial pressures investigate anomalies; evidence to support initial findings.

STAGE 3 – Recovery/Reporting have resulted from managers having approved the same invoice at different times in the approval and payment process.

Many organisations have either not heard of Spend Recovery Reviews or do not consider that the recoveries and associated cash generated is likely to be applicable to them. With so many financial pressures on every organisation as a result of the COVID pandemic and recent inflation and energy costs surges, there has never been a more appropriate time to consider EVERY avenue for income generation.

As the cost of a review is based on a ‘share of recoveries’ with no upfront costs and limited/no internal resource requirements, undertaking a review of this type should bear serious and urgent consideration.

Twice2much specialises in ‘Spend Recovery Services’ working with finance directors, accounts payable managers and heads of audit to provide a comprehensive review of accounts payable spend.

We provide the time, resource and expertise that many in-house teams cannot justify resourcing internally.

Twice2much are an approved supplier on the Crown Commercial Service Framework RM6226, Lot 15 - Spend Analytics and Recovery Services, enabling organisations to procure this service quickly and simply, as the due diligence has already been undertaken on the procuring organisation’s behalf. Our recoveries made on behalf of clients to date demonstrate beyond doubt how we can help any client…

What does a Spend Recovery Review involve?

Our reviews enable clients to benefit from a ‘bespoke’ detailed forensic review of their organisations’ accounts payable transactions.

There are three stages to a Twice2much Spend Recovery Review:

STAGE 1 - Identification/detection

Access to £100,000’s of technology, including ‘bespoke’ analytic software and resources; access to dedicated experienced professionals; multiple-layer interrogation of transactions with suppliers; specialist expertise in reviewing supplier transactions and identifying anomalies.

STAGE 2 - Verification/validation

Expert detailed analysis of transactions at individual supplier level to validate and

Twice2much provide the system, processes and resources to recover the errors found on our clients’ behalf; flexible but targeted reporting provides significant additional benefits to clients.

A comprehensive process

Our reviews do not just identify potential duplicates but cover the whole process from obtaining data, identification and verification and includes recovery from suppliers.

It even includes raising all paperwork to enable processing of recoveries and comprehensive reporting.

What resources are required internally?

All reviews are carried out off-system, off-site and out of sight with a focus on ensuring minimal requirement for internal resources.

The only internal resource requirements are for the extraction of data, review of initial results and processing of refunds or corrections. Assistance is provided by Twice2much for all elements.

Why can’t we do these reviews ourselves?

The truth is you can...

You can either create or buy analytical software to find potential overpayments you may have made.

However, both scenarios require cash and time resource cost with no guarantee of any benefit and at a time when resources can be better focussed on core business services.

Our reviews involving significant established analytics and expertise operate on a ‘share of recoveries’ basis with zero upfront charges, thus incentivising us to find and recover more for you with minimal need for internal time and resource costs.

A common misconception

Many people mistakenly believe that if duplicates/overpayments are found by our reviews then accounts payable are at fault because they overpaid the supplier.

In my 30+ years of experience undertaking and managing reviews of this type, this could not be further from the truth, which I have explained to many finance directors and heads of finance and audit.

Rarely are payments made to a supplier without a manager’s approval and in nearly all cases, duplicates/overpayments identified

In these difficult times, it is essential that we think less about the blame game and more about the opportunities and cash generated that can help with the challenges we are all experiencing.

Who should be considering these reviews within your organisation?

Heads of audit, heads of fraud departments, heads of finance, and heads of accounts payable or procurement are the key individuals involved in considering and procuring these types of ‘specialised’ reviews. As ‘all’ Twice2much Spend Recovery reviews are undertaken on a ‘share of savings’ basis, they are in effect selffinancing, and therefore no budget or funding is required, limiting the need for a protracted procurement exercise.

How to procure a review

Crown Commercial Services ‘Framework’ RM6226, Lot 15 - Spend Analytics and Recovery Services can be used to procure the service either by direct award or by a limited tender exercise.

Public sector organisations can procure these services directly with accredited providers like Twice2much.

Benefits?

Recoveries from our reviews effectively represent an ‘unbudgeted financial windfall’ which can be used to directly address budgetary pressures, enable the provision of additional services and/or fund additional resource requirements.

Twice2much would be happy to provide more details or discuss how we can help you generate these benefits quickly and efficiently. L www.twice2much.com