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DATA ANALYTICS
Revenue Leakage Detection
National Freight & Logistics Provider (Top 20 US 3PL)
+$40M
Recovered Annually
100%
Audit Coverage
14.7x
Discrepancy ID
94%
Audit Accuracy
The Challenge
A national logistics company managing $2.8B in annual freight spend discovered they had no systematic way to verify they were being billed correctly. Their contracts contained complex terms including volume-based tier discounts, fuel surcharge caps, and accessorial charge limits.
Manual audits caught obvious errors but missed sophisticated discrepancies. Industry benchmarks suggested they were likely losing 2-4% of freight spend ($56M-$112M) to billing errors and missed contract terms.
The Approach
PRR built an AI-powered Contract Compliance & Revenue Recovery system:
- Used NLP to extract terms from 340+ contracts into structured, queryable data formats
- Real-time comparison of every invoice line item against applicable contract terms
- ML models identifying unusual patterns suggesting billing errors (anomaly detection)
- Automated dispute generation workflow with supporting documentation for identified errors
Recovery Engine
1
Digitize
Contract NLP Extraction
2
Match
Invoice vs. Contract Terms
3
Recover
Automated Dispute Filing
The Impact
| Metric | Before | After | Improvement |
|---|---|---|---|
| Invoice audit coverage | 12% (sampling) | 100% | Full coverage |
| Identified discrepancies | $3.2M/year | $47M/year | 14.7x increase |
| Successfully recovered | $0.8M/year | $41M/year | +$40.2M additional |
| Time to identify issues | 45-60 days | Real-time | Immediate |
ROI: System paid for itself in 6 weeks
Tech Stack
Azure AI Document Intelligence
Azure OpenAI (Contract Parsing)
Custom Anomaly Detection
Power Automate
SAP Integration
Stop leaving money on the table.
Automated contract compliance can recover millions in lost revenue. Let's audit your leakages.
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