Overview
Profit recovery firm GALOSI, based in Dallas, TX, partners with a leading convenience store chain, establishing itself as an extension of the company and vital part of daily operations.
Problem Encountered
In 2001, GALOSI was given the opportunity to provide custom profit recovery auditing services to a leading convenience store chain. With GALOSI’s experience, first-rate customer service and unmatched auditing practices and ethics, the relationship thrived over time, eventually positioning GALOSI as an extension of the company.
As with any client operating within a specialized industry, GALOSI approaches client relationships with a true understanding of that industry’s high standards for vendors and necessity for custom solutions. For GALOSI, it is crucial to comprehend all aspects of an industry- down to the nuts and bolts - to establish and effectively maintain a credible, productive relationship with the client. This was the approach that GALOSI took when it began its relationship with one of the nation’s leading convenience store chains.
Having previously worked with the client’s senior management, the GALOSI team had exceeded expectations in quality and success on those projects so much that the client felt strongly about GALOSI’s capabilities and brought the profit recovery company on board. Initially, GALOSI was to focus on the Vendor Funding Programs where GALOSI would review and audit promotional money provided by the client’s vendors to improve sales.
Our Solution
As part of the process, GALOSI met with key personnel within the company and collected and organized all raw data pertaining to the audit, a process called “download management.” This is a vital step to ensure a smooth transition of all data. GALOSI worked diligently to coordinate their team with the client’s employees during this process where paper data must be copied, sorted, and filed, paper-based data needs to be converted to electronic data and downloads from clients need to be analyzed and converted into database files suitable for auditing. As part of GALOSI’s process, they used the raw data with the client’s A/P infrastructure and processes to create customized software that mimics the client’s internal processes to ease the transition to auditing, allowing GALOSI to focus on the data.
After the initial analysis of the Vendor Funding Programs, GALOSI provided their findings with detailed documentation that supported the proposed recoveries. Upon review of the findings, the client agreed with GALOSI’s recommendations. GALOSI proceeded to contact vendors on the client’s behalf to efficiently conduct this communication and collection phase in the profit recovery process. In turn, GALOSI’s fair and respectful approach to the client’s vendors helped to strengthen the relationships between the client and its vendors.
“In the past five years, GALOSI has recovered several million dollars of lost profits for our organization, while maintaining a productive and growing business relationship with our vendor community,” the client’s VP of Merchandising and Logistics said.
Upon completion of the recovery audit, GALOSI provided a thorough report that outlined their evaluation of the client’s A/P System and included recommendations for improving their internal processes. The intention is to help the client avoid future loss while improving efficiency and effectiveness of their internal controls. Overall, the GALOSI effort provided valuable information that improved the client’s internal processes, creating the opportunity to earn more allowance dollars on a timely basis.
“They did what they said they would do,” the client’s Director of Merchandise Accounting said. “They simply lived up to the expectations that were set and executed the process as promised.”
In addition to the way GALOSI handled business with its vendors, the client was also very impressed with the way GALOSI conducted itself with their internal team, acting as an extension of the company rather than just a third party within its walls.
“They have been very sensitive to the time commitments necessary from [our] personnel,” the Director of Merchandise Accounting said. “They do everything they can to minimize the time they require from folks.”
As the relationship progressed, the client steadily demanded GALOSI’s input on a more frequent basis, often including GALOSI on talks for additional cost-saving opportunities. Having established credibility and trust, GALOSI’s role with the client evolved tremendously, ultimately positioning GALOSI as part of the company.
“Because of these excellent results, we have continued to use [GALOSI’s] services within our organization,” the VP of Merchandising and Logistics explained. “Their work is as essential to us as a Gross Margin enhancement activity as well as complements the work of our internal auditing group."
Results
Since 2001, GALOSI’s has expanded its services for the client to include additional Vendor Funding Program Audits, Telecomm Audits, some Sales/Lease Tax Audits, Contract Compliance Audits, Accounts Payable Audits, Sarbanes-Oxley Audits and any additional or specialized audit as requested by the client.
Through their relationship with this leading convenience store chain and many others, GALOSI has developed the expertise required to perform successful profit recovery audits within the convenience store industry. GALOSI understands that in a specialized industry such as this, it takes a lot more to lead profitable recovery audits. It takes a diligent, experienced team to asses a company’s unique situation for recovery auditing and custom-tailored solutions to fit their exact needs.
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