Discover More Dollars By Killing Overpayments & Revenue Leakages

- by Guest Authors - Hemant & Anup (Founders expatideas.com)

Erroneous payments and Revenue leakages can have a negative impact on an organizations ability to achieve its intended outcome. Most companies have not yet estimated the magnitude of erroneous & Overpayments payments in their programs. Without a systematic measurement of the extent of the problem, management cannot determine (a) if the problem is significant enough to require corrective action, (b) how much to cost effectively invest in internal control systems to correct the problem, or (c)the impact of the actions already taken. Identifying effective practices and providing case illustrations and other information for companies to consider when developing strategies and planning and implementing actions to manage erroneous payments in their programs has become extremely vital.  It is well known in the business world that if you don’t measure it you can’t track it. This means that you can’t determine where you’re at or if you are getting better without measuring. No organization is 100% error-proof irrespective of best systems and processes. Even at 99% accuracy, a company with $2 Billion revenues could possible loose upto $20 Million. Large organizations, often employing third party recovery audit firms for hefty fee to identify and recover lost profits from duplicate and erroneous payments.

Erroneous payments are widespread and has significant problem which is receiving increased attention among organizations of different size and scale which includesprivate sector and publically listed companies too. Erroneous payments mostly include inadvertent errors, such as duplicate payments and miscalculations; payments for unsupported or inadequately supported claims; payments for services not rendered; credits and allowance available from vendors but not accounted for, payments to ineligible beneficiaries; and payments resulting from outright fraud and abuse by program participants and/or employees. They occur in a variety of programs and activities. Erroneous payments mostly threatens profitability, that can translate into serving fewer recipients or represent wasteful spending or a higher relative tax burden that prompts questions and criticism from the taxpayers. Erroneous payments indicate that companies and enterprises are spending more than necessary to meet their goals. Conversely, for companies with fixed funds, any waste of funds translates into serving fewer recipients or accomplishing less programmatically than could be expected.

The risk of erroneous payments and companies’ ability to prevent them will continue to be of concern in the future. Pressures will grow rapidly due to increased costs of spending across programs. Few would argue that the goal of reducing erroneous payments is not a worthy one, but initiative for improved financial performance can yield immediate results. Addressing the problem requires a strategic approach by organizations and actions taken in this direction will reduce erroneous payments. But the question is – where do you start if you haven’t done an assessment before?  The answer – is specific to an industry.

Discover Dollar helps companies to discover hidden dollars by digging deep into their data. As large retailers have multi-million dollars of revenue leakages and overpayments like pricing errors, duplicate payments, unclaimed credits, cash discounts, allowances &rebates from vendors etc. It helps companies to detect and resolve problems of overpayments by analyzing all data sources including unstructured data like emails and contracts where majority of the deal with be negotiated and finalized.

They also optimize their pricing and deals negotiated with vendors by providing insights into promotions and predicting pricing patterns. Overall helping companies to discover more income, margin and profits with any additional investment in operations or sales. Few global players are solving overpayment problems by expensive, time consuming manual audits whereas Discover Dollar has built revolutionary real-time solution leveraging new technologies in big data space. It’s a first of its kind solution to Indian market. Globally overpayment is $10 billion market. Their primary market is North America & Europe but now they are also focused on emerging economies like India & South Asia.

Discover Dollar is looking to expand its technology team and its data Science capabilities for building cutting-edge technological solutions to solve revenue and payment leakages at enterprises. It has plans to open a full-fledged office in the US in next one year. They are also in discussions with many Fortune 500 companies who are facing overpayment problem. After discussion with Discover Dollar, one of the largest retailer in the US realized they have more than $100M potential overpayment problem and now signing agreement with Discover Dollar to resolve it. Similarly many companies including large conglomerates are quite ignorant about the scale of the problem. Discover Dollar has won many accolades including “Top 5 Most Innovative Solution” by SAP in Orlando, “Anthah-Prerana” by IIM Bangalore & TiE Bangalore & “10K Pitch” by NASSCOM and clearly poised to a very successful organization.

The core team includes Subrahmanya Rao (Co-founder & CEO) who is a MBA from SDMIMD passed out in the year 2010 and has worked with an Atlanta based Auditing firm where he had personally recovered multi-million dollar overpayments for Fortune 500 companies. Praveen Kumar (Co-founder) passed out of BITS-Pilani in 2008 has spent 4 years with SAP Labs with a patent filed in Business Objects.

With such initiative let’s hope that companies get richer and contribute towards a better economy.

To reach discoverdollar click here

Original Aritcle was published by Hemant & Anup at http://www.expatideas.com/retail/discover-more-dollars-by-killing-overpayments-revenue-leakages/

Team eXi wishes them success in their journey.

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