Salitix identifies and recovers £28k for UK-based food producer

A multi-billion pound UK-based food producer with a significant grocery business in the UK found CPI negotiations had put considerable strain on some key client relationships, impacting day-to-day trading outcomes. Tensions had made it seemingly impossible to resolve historical trading issues, particularly where money was due back from their customer.

Challenge: Retailer fails to order stock as part of derogation agreement

A derogation agreement was in place with one retailer, which stipulated that short shelf-life stock would be sold to the retailer at a significant discount between specific dates to aid sell-through of this stock. As part of the same agreement, a specific amount of stock would be ordered by the retailer during the agreed period. However, our client realised that while the funding had been paid, the retailer had failed to order the necessary stock.

Solution: Reviewing agreements, emails, and orders

Salitix was asked to review the contracts and timings of the orders made by the retailer. To do this, the audit team revisited the original negotiation emails, the agreement made between the parties, and the orders made against specific product lines relevant to the agreement(s). From this analysis, Salitix was able to identify £28k of invoiced funding paid to the retailer where orders had not been made during the agreed period.

Results: £28k validated and repaid to the supplier

Salitix was able to approach the retailer via an audit finance channel, which was separate from the client’s trading channel. The archive evidence and data for analysis were presented for validation to the retailer’s audit team, after which the identified £28k of incorrect funding was agreed and repaid within 30 days of the queries being presented.