Accounts Payable Analysis Prescribes $1.5 Million for Pharmaceutical Company
A national pharmaceutical company that focused on reducing prescription drug costs for its customers was also looking for internal cost savings. The company was aware of the financial leakage risks that its current accounts payable (AP) function posed, including multiple payment systems and over $1 billion dollars in spend, but it did not have the specialized forensic expertise and resources necessary to address its risks.
Our data analytics team offered a technology-based solution that allowed the company to use existing data to determine its financial leakage points.
We implemented a data analytics program for existing AP information, analyzing it to reveal patterns. Our proprietary scripts ran 28 unique tests that identified fraudulent payments, overpayments, credit memos, and more. With minimal time spent by the company, we were able to pinpoint and address red flags in real-time. The data analytics program also eliminated the error rate that occurs in traditional audits because the program assessed the entire data population instead of a statistical sample.
Within two months of identifying overpayments, the company recovered $1.5 million and established a process for continuous monitoring. Our program helped with future cost saving by providing management with real-time information to review on a consistent basis, and act on if necessary, without the need for formal reporting.
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