Use our Post Audit Claim Recovery to fund your Trade Spend
Claim recovery audit process for food and CPG manufacturers that face post audit claims from large national retailers.
Manufacturers in the Food and Consumer Packaged Goods industries often face post audit claims from large national retailers, based on trade spend the retailer claims was not provided but also billing, shipping and pricing errors.
These claims are initiated by third-party accounts payable auditors acting on behalf of the retailers. The auditors get paid a percentage of their recovery on a performance basis, and therefore have a strong incentive to make excessive claims. In our experience more than 50% of these trade spend claims are wrongful and invalid.
Post Audit Claims hurt the Trade Spending Budget
Post audit claims represent a considerable amount of money in the trade spending budget, often hundreds of thousands of dollars, and often cover business transactions over a period of several years. The claims are deducted from normal remittances for products delivered and invoiced and leaves trade promotion management with a cash shortage.
Post-audit deductions are difficult business issues faced by vendors to retailers. The burden of proof is squarely placed on the manufacturer, and they have to disprove each individual element.
However, claims are often difficult to research the trade spend managers may not have the expertise or the time to investigate the claims. As a result the recovery audit process often takes months and many times the recovery audit in retail industry is unsuccessful.
Our clients are also often hesitant to pursue claim recovery since they don’t want to jeopardize the business relationship and are afraid to aggravate their clients, which are large and powerful retail corporations.
How we Help
At Claims Recovery Group we have extensive experience in recovering wrongful post-audit claims. We act on behalf of the manufacturers to recover invalid deductions. We help our clients correct the wrong and retrieve the money that is rightfully theirs, so they can focus on trade spend optimization.
We have been in this business since 1997, and have recovered millions of dollars for almost 50 large food and CPG manufacturers that do business with Canadian retailers. We succeed because we have the analytical and investigative audit skills, honed over almost 25 years of doing post-audit claim recovery. Our experience leads to extraordinary results. Where in average about 40% of post-audit claims are recovered by third-party auditors, we often succeed in recovering 60% of the claim.
Aside from our technical skills we also have the interpersonal skills to deal with the auditors that have laid the claim, and we have the tenacity and perseverance it takes to succeed. We know how to investigate the claims, and we also know how to communicate with the person who wrote the claim. We relieve our clients from a very time consuming and frustrating exercise and we reclaim money for them that they can then spend to promote their current year’s promotions.
The cost of our recovery audit process is performance-based, a success fee on post audit claims actually recovered. Our clients pay us an agreed percentage commission from the money we recover on their behalf. If there is no claim recovery, then there is also no cost.
How it Works
We collate all claims received by the manufacturer and compare it against contracts, order forms, invoices, freight bills and other supporting documentation.
We do a claims audit and create a detailed report with all erroneous and wrongful claims for your consideration. We typically find that up to 60% of audit claims are wrong.
Upon your approval we negotiate with the 3rd party auditor of your client who has submitted the wrongful claim, and provide them with irrefutable documentation and proof.
We recover the money that is rightfully yours, so you can use it again for trade promotion. You compensate us after you have received your payment.
Why 50 Food and CPG Manufacturers have worked with us
Post Audit Specialist
We have specialized completely in post payment audit deductions. Recovering your money from wrongful claims is all we do.
We have in business since 1997 reclaiming wrongful claims for CPG manufacturers. We typically get up to 60% of the claim back.
No Recovery, No Pay
We get paid a percentage of what we get back for you. You only receive an invoice after we secure payment from your client.
So, book a no-obligation call with us now!
And in the meantime, download our fact sheet with statistics from our over 30 years of experience. You can stop being frustrated that your team doesn’t have the bandwidth to review large post audit claims internally and be confident with a trusted advisor with a proven track record offering professional service at a performance-based fee.