Case Studies – Large-Box Retailer

CADENCE BILL AUDITOR, ED VOGT, FINDS HUGE NATURAL GAS SAVINGS FOR LARGE--BOX RETAIL CUSTOMER!

Company Overview: The client is a large-box retailer, operating approximately 1,000 stores in the United States.                                                                                                                       

Issue: Cadence auditor, Ed Vogt, identified an over-limit billing exception on a client’s monthly gas invoice.   With a monthly charge of nearly $23,000--nearly ten times the average gas cost for this location-- the financial impact of such an expense would be significant.  Upon investigation, Cadence realized that the client was being billed incorrectly by both supply and distribution vendors, as the invoice production process incorrectly applied a multiplier of ten (10) to the invoice volume variable.  

Solution: When Vogt presented this error to both the supply and distribution vendors, they agreed that the billing was incorrect.  As a result of Cadence’s findings, all billings for the 8 month period from June 2007 to February 2008 were cancelled and re-billed. The 8-month gas usage was revised by a factor of ten.

Savings: The distribution charges were revised down by 83% and the supply charges were reduced by more than 90%.  Because this error would have continued indefinitely had it not been caught, Ed Vogt's sharp auditing skills have saved this client literally hundreds of thousands of dollars.