Vendor management is an essential function of any size organization that relies on third-party suppliers and contractors. The day-to-day onboarding of new vendors and the maintenance of existing vendors is a tedious and burdensome task for businesses with or without a dedicated vendor manager.
When an adverse event takes place in an organization, you need someone who is skilled at gathering pertinent data and presenting comprehensive reports. Our team of certified fraud examiners and licensed investigators have experience conducting highly complex audits and investigations resulting in multi-million dollar recoveries.
The world of commercial insurance is extremely complex and often very costly if the right questions are not being asked. KART brings certified insurance experts to your team allowing you to make informed, unbiased risk management decisions.
The lack of controls to determine potential conflicts between the Company and a perspective vendor allowed a Project Manager to hire an immediate family member. Padded invoices over a six-month period resulted in an $800,000 loss to the Company. KART investigators were able to identify and document all fraudulent transactions, resulting in a full $800,000 recovery for the Company.
In response to a catastrophic loss, the Company realized they should have required the vendor to carry higher insurance limits based on the services the vendor was performing at the time of the incident. The insufficient coverage forced the Company's policies to cover a $15 million shortfall. This resulted in a permanent $1 million annual insurance premium increase and a damaged loss history. KART's certified insurance professionals helped the company categorize its vendors into risk tiers, standardize their service agreements, roll out new vendor contracts, collect and verify insurance, and implement a vendor management solution to safeguard the company from future losses.
Failure to properly monitor the cancellation deadline for a software subscription that was no longer in use, resulting in a three-year renewal costing the company $600,000. KART helped the Company audit all of its existing contracts for other potential waste and implemented a system to track and alert them of any other impending contract deadlines.
Adding vendors to a Company’s AP system simply because an invoice was received allowed someone posing as a legitimate business to defraud the Company out of $35,000 in a single transaction. KART implemented controls that validated the legitimacy of any vendor attempting to invoice the Company and prevented any future invoice payments without the vendor being validated beforehand.
The inability to simply collect and record pricing for work being performed limited the Company from recovering all losses associated with over billing. Despite the lack of records, KART's fraud investigators were still able to recover 40% of the $20 million total calculated loss over a 6-year period. KART helped establish a vendor management program requiring the initial collection of pricing, in turn eliminating the ability for vendors to alter pricing without Company approval.
The firm’s head of administration was responsible for the establishment and payment of all vendors. This led to the ability of the employee to add an illegitimate vendor to the AP system and fraudulently invoice the Company for $1.1 million over a period of 5 years. KART’s vendor management program allows for the validation of any new vendor and periodically audits for potential connections between employees with payment authority and all company-approved vendors.
Following several years of paying exorbitant insurance premiums and brokerage fees the Company decided to solicit Requests for Proposals (RFP) to select a new broker in anticipation of their next renewals. KART facilitated the entire effort on behalf of the company and achieved $600,000 in combined savings for the following year.
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“KART's engaged, curious, and enthusiastic team, paired with their expert process helped level up our vendor onboarding and insurance maintenance programs. This laid a solid foundation for our operating team's rapid growth and execution.”
“KART & Co. has provided expert and timely services to Freedom Solar Power - namely in the areas of vendor onboarding and management and insurance consulting. Their team's support has allowed us to lean into our strengths as we scale our growing business.”
“We were struggling to quickly and effectively onboard the company's vendors. KART’s experienced team got us organized and helped us sort out our vendor compliance.”
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