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The retailer will engage the audit software provider to identify lost revenue and rebates.
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Profectus Group to grill Barbeques Galore transactions
04 May 2022
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Barbeques Galore will work with compliance specialist Profectus Group to recover money lost as a result of transaction errors and missed rebate income.
An analysis of payments and rebates to the retailer over the past four years would aim to identify revenue owed and improve its bottom line.
“Profectus has a proven ability to identify anomalies and errors in historical transactions that will assist us in recovering any lost revenue it can identify over the past three to four years,” Mitchell Koureas, CFO at Barbeques Galore, said.
Profectus Group’s own data estimated there were 3.5 to 4.5 errors in every 10,000 transactions made between a business and their supplier, across sectors, in Australia alone.
It also estimated that an average of between 0.75 per cent and 1.25 per cent of rebate income was missed.
Profectus Group chief executive Chris Hutchins said in retail, there was potential for financial leakage due to the sheer volume of suppliers they work with.
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“It’s tough for any retailer to maintain visibility over every transaction and available rebate,” he said.
“Barbeques Galore is a proudly Australian retailer and their footprint across the country is immense – and so too is the level of their sales, the deals they provide customers and more.”
Mr Hutchins said errors in the procure-to-pay processes were common across all sectors in Australia and New Zealand and could result in billions of dollars per annum of lost value as well as frustrated relationships between a business and its suppliers.
In 2021 alone, Profectus Group identified nearly $29 million in approved recoveries from 6,386 claims across its client base.
Barbeques Galore would lean on Profectus to perform AP Audits to identify and recover any payment anomalies over the past four years, a period determined by Barbeques Galore.
It would also test the effectiveness of its processes and controls, and implement automation where possible.
“Our technology, expertise and pay-per-claim model will enable Barbeques Galore to identify any gaps in revenue they’re entitled to and help recover it to boost their bottom line,” Mr Hutchins said.
“Profectus will only invoice its clients when potential claims are identified, and it only takes a percentage of the overall claim amount, ensuring significant ROI from its service.
“It enables transactional level control that complements existing internal and external audits, while its leading audit technology enables live auditing and improves recoveries by up to 36 per cent over traditional recovery auditing offerings.”
With more than 90 stores throughout the country, Barbeques Galore has been supplying Australians with barbeques since 1977.
Profectus Group is a trade promotion management and recovery solutions provider that uses a pay-per-claim audit model along with its rebate deal management systems to help prevent financial erosion at the source.
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