Client
A manufacturer of products derived from petrochemical raw materials.
Our Client's Key Challenges
When an explosion occurred at a manufacturing facility, they needed to quickly reduce the negative impact of this unfortunate event. They initially hired another firm to perform supplier invoice reviews, but after two weeks of working 12-hour shifts, that firm had processed no invoices, and submitted no progress reports to our client. They were also owned by the client’s claims management firm. This meant they were not independent and not motivated to deliver strong recoveries from their own parent company.
Because of the critical environment following this unplanned event, supplier contracts had been expedited too quickly to ensure fair and equitable terms. Revenew was hired to make up for lost time and mitigate damage done by the previous firm.
Project Scope
- Operational response support
- Third-party invoice review
- Cost control/validation
- Contract compliance
- Insurance reimbursement support
Fast Results
We had Revenew’s team embedded in the client’s invoice review workflow – with reporting in place – in less than four days. We quickly worked through the significant backlog, while remaining diligent to uncover any inconsistencies. Findings included:
- Unfair contract terms and excessive rates
- Grey areas that allowed overbilling
- Ineligible per diem markups
- Labor rate OT for less than 40-hour weeks
- Duplicated state/federal taxes for labor rate OT buildup
- Excessive equipment rental/lease rates
An in-depth audit process and report package was prepared: per invoice. Our quality control process enabled the client to more easily recapture costs from regulators, and our workpapers were designated validation to satisfy insurance reimbursement.
Strong ROI
In addition to restoring order, Revenew delivered hard-dollar results that far exceeded our hourly cost of service:
- Real-Time analysis of 1,953 invoices totaling $171 million
- Gross savings: $3 million, with net savings of $2.29 million
- Net savings: $2.29 million
- Total hard-dollar ROI: 345%
- Prior overbillings recovered: $155,000
- Future overbillings prevented: $914,000