Margin Assurance & Recovery

Implement margin resilience into your operations.

What We Do

Increasing prices and sales in competitive and highly regulated markets is challenging. What other levers are available to senior management to meet margin targets?

Tackling margin erosion caused by operational issues is the largest internal lever that can be pulled with the highest margin impact. Examples of this include unbilled services, inaccurate third party payments and incorrect application of pricing. Global studies show that in telecoms this erosion can be up to 1.5% and across utilities this is can range from 3% to 5%.

Our Margin Assurance & Recovery solutions are a low risk, high value approach to protect and recover margin. This approach mitigates current and future risk to profitability throughout the customer, product or supplier lifecycle.

Examples of Margin Assurance & Recovery

Pricing
Transportation & Logistics
Value:
2.5% increase in revenue
Approach:
Correcting and optimising the implementation of product pricing by customer type
 
Water
Value:
£3m increase in margin
Approach:
Aligning tariff and consumption bands
Sales
Energy
Value:
Elimination of  £6m of revenue leakage
Approach:
The utilisation of existing data and process improvements
Brokers
Energy
Value:
10% of external commission payments recovered
Approach:
Code audit of commission engine
 
Telco
Value:
60-day improvement in cash flow for commission payments
Approach:
Margin Assurance Frameworks and Methodologies
Transfers
Energy
Value:
£3m increase in net margin
Approach:
Debt objection for business customers
Metering
Water
Value:
Improved trade effluent meter reading compliance by over 80%
Approach:
Created reporting to work with customers to increase compliance
Billing
Energy
Value:
Identification and resolution of 6% of bills flowing through the billing journey up to 5 times prior to being successfully billed
Approach:
The utilisation of Margin Assurance Frameworks and Methodologies
Collections
Energy
Value:
Release of £1m bad debt provisioned against credit balances
Approach:
Implementation of single customer view
 
Water
Value:
Improved effectiveness of the dunning process by 15%
Approach:
Implementation of Control Framework
Services
Water
Value:
20% decrease in ex gratia payments
Approach:
Introduction and application of policies
Wholesale
Energy
Value:
4% increase in gross margin
Approach:
Increased billing and reduced wholesale costs
Margin Assurance-3

Results

To explore further, please do get in touch, we’d love to hear from you.