Egger, a family owed, multi-billion Euro wood products manufacturer uses the recovery audit services of Profit Connect EMEA to identify and recover lost profits.
Headquartered in St Johann in Tirol, Austria, Fritz Egger’s operations include 17 plants and 25 sales offices globally. This complex business, uses SAP administered locally, as their ERP system. Profit Connect’s data experts have extensive knowledge working with SAP and guided Egger’s teams through the download process to acquire the data to be audited.
The audit initially focused on identifying duplicate payments by analysing Egger’s ERP data. Concurrently a statement audit was conducted to identify open items on supplier’s ledgers not known to Egger from past trading years; as well as incorrectly coded invoices resulting in under collection of Input VAT.
The audit was conducted partly onsite at Egger’s offices in Austria and partly offsite from Profit Connect’s offices in the UK. All the audit work from identification to documentation of claims was managed by Profit Connect whilst Egger contacted suppliers themselves to recover monies owed. This process worked extremely well and the process was seamless - Mr Ahornegger, (Head of Financial Accounting EGGER Group) commented:
“The Profit Connect team have been truly professional working with us to follow a bespoke process appropriate to our Global business. My team have worked hand-in-hand with Profit Connect to recover the identified lost profits. The benefits of this audit include unbudgeted revenues from recovered claims and process improvement recommendations from Profit Connect’s root cause analysis reports.”
Throughout the audit, as Profit Connect’s knowledge and understanding of Egger’s business grew, new areas of opportunity were presented by Profit Connect to Egger for consideration. Mr Ahornegger explained:
“I was pleased that Profit Connect were constantly looking for ways to add value to our business, presenting them and allowing us to consider their value within the wider strategy of the business. Profit Connect don’t just look for duplicate payments, they add value to our finance processes. Over the life of the project I have been extremely pleased with the process, approach and customer service Profit Connect have delivered and it is a pleasure to recommend them.”
Mr Collins (Profit Connect) concludes:
“Fritz Egger’s operations are complex, yet their systems, processes and procedures are robust and the incidence of error low. The value added to Egger shows the depth to which our audit services go. Egger’s supplier relationships are fundamental to their operations and the procedure adopted was perfect, ensuring there were no negative reactions from suppliers. We look forward to continuing to develop our relationship with Egger into the future.”