Our Process

The GALOSI Process

Through the eyes of their clients, GALOSI is seen as a strategic partner and not an ordinary vendor. This follows the keen business philosophy of the founding partners of GALOSI. 

Success Story

“We felt like GALOSI was part of our internal team. They’re sharp, articulate and driven to get to the root of our problems.”

— Mike Bryk, CFO, CompUSA

Our 5-Step Process for Success

MEET KEY PERSONNEL

The process begins with a “kick-off” meeting. The purpose of this meeting is to first introduce personnel from both organizations that will be involved in the analysis process. Secondly, a mutually agreed upon location to perform the analysis is established. Historically, our analysts set up where the archived A/P files are located so that we are as close as possible to your information.

GATHER AND PREPARE DATA

Raw client data, whether paper or electronic, needs to be obtained and prepared for analysis. When gathering data, determining who controls the information and how to acquire it is vital. Paper data needs to 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 analysis. Once this “download management” is complete, we are ready to begin the profit recovery process and identify exceptions.

VERIFICATION AND REVIEW

In this analysis process, we are focused on identifying overpayments that have resulted from common errors such as missed discounts, missed credits, duplicated payments, over looked allowances, pricing mistakes, incorrect invoices and many others.

In paper-based analysis, this means “flipping paper” and comparing purchase orders and other agreements with invoices. In electronic-based analysis, this means searching databases and comparing purchase orders with invoices. In an electronic environment, our proprietary recovery software is state of the art and allows for the most thorough and comprehensive review available.

Once we have identified overpayments, all of our recoveries and relevant supporting documentation are forwarded to the designated employee within your organization for approval. This allows for you to have complete control of the analysis, but more importantly, it ensures that our clients’ vendor relationships are not damaged in the case that a specific claim does not want to be pursued.

VENDOR CORRESPONDENCE

We take pride in submitting well-documented claims. This includes a claim sheet that can be reviewed, understood, and approved very quickly by our client and their vendors. After the claim has been approved, we then, on behalf of our client, handle all correspondence with the vendor community.

MANAGEMENT REPORT

At the completion of our engagement, we issue a thorough report and evaluation of the A/P system to management, which contains our results and recommendations for improving efficiency and effectiveness of internal controls. While we recover immediate cash for you, we also focus on offering ways of avoiding future losses.

“Jose was more than just an associate; he became a good friend to all of us that worked with him. We truly felt we were all a part of a very good team.”

— Steve Eckels, Division Controller, C.P.A, Fleming Foods

Analysis Concepts

ADVERTISING / CO-OP ACCRUALS

Like rebates, there are a number of ways that errors can occur in advertising. We go the extra mile to understand your procedures so that we can recover more advertising dollars.

COST OF MONEY

Anticipation or Early Payment Discounts are another area of GALOSI’s expertise. We understand the implications and remedies relative to the cost of money when our clients pay early whether they intended or not.

CREDIT MEMO ERRORS

Obviously a credit memo is a good thing unless it is paid or not deducted at all. We have developed creative methods to uncover credit memo problems.

DEFECTIVE OR SPOILED GOODS

Whether it is spoiled lunch meats or a defective lawnmower, we will make sure you are credited correctly according to the many applicable programs in the industry or according to your own policies.

DUPLICATE PAYMENTS

We will analyze your data from dozens of different angles for those pesky duplicate payments.We will also look for duplicate paybacks, payments made to wrong suppliers and any other hybrid of duplicates.

ERRORS INVOLVING RETURNS

There is a multitude of overpayments & under-deductions that can occur in this area. We will make sure that you are only returning the goods, not your profit!

FREIGHT & ROUTING ERRORS

In some analysis, these errors can easily account for more than half of the money recovered. We understand the idiosyncrasies associated with freight and will perform well for you in this area.

Incorrect Pricing

With today’s razor-thin profit margins, pricing is a critical area for our review. We will apply our knowledge of industry standards and bracket pricing to your benefit.

Industry Specific Errors

Every industry has areas unique to them that should be reviewed for overpayments. Whether it is conditional tariffs, tax parcels, EDI fees, deadline penalties/rewards, etc.

Invoice Upcharges

You would be thoroughly amazed to see the many types of incorrect upcharges we have seen added to invoices. For the most part, invoice upcharges are plain & simply not valid!

New Store Allowances

There are many ways that suppliers are asked to participate in new store openings; flat rate amounts, opening order discounts, free product, etc.

Payment Errors

Extension errors, arithmetic mistakes, fat finger aberrations or other possible mistakes.

Price Protection

Price Protection is often overlooked and is still misunderstood in our industry. GALOSI knows price protection and the many different ways it should be analyzed whether in grocery, electronics or elsewhere.

Purchase Incentive Allowances

This is a huge area for grocers and other traditional retailers. We review your invoices for missed or understated off-invoice and/or billback allowances.

Rebate Miscalculations

Rebate programs are common place today yet they are rarely calculated & paid with 100% accuracy, especially if your suppliers are providing you with the figures. Let us recalculate your rebates as part of our audit.

Terms Discount Errors

Your reward for timely payment can sometimes be omitted or understated even though you rightfully earned your discount. GALOSI produces unmatched results in this area of recoveries.

Trade Discounts & Allowances

Many industries you are purchasing from have trade programs that are often mis-communicated (or not communicated at all). Our trade knowledge and super sleuthing are positives here.

Unapplied Cash & Open Credits

What typically happens when you don’t review your statements for open credits? The credits are lost forever! We’ll make sure that doesn’t happen.

Vendor Compliance

Are you properly enforcing the policies you have instituted to prevent additional expenses due to supplier mistakes? Let our expertise help you out in this sensitive area.

Volume / Quantity Discounts

Again, GALOSI makes it our business to know of the different incentives available for quantity purchasing. If you earned it, we’ll make sure you got it!

Warehouse Allowances

Actually this allowance has many aliases but is still quite common today. GALOSI is aware of the industries and situations where this allowance is collectible.