---
title: Cost Recovery Consulting | Vendor Recovery | Supplier Recovery
description: Our cost recovery Consulting helps manufacturers automate supplier claims and boost reimbursement rates.
image: https://www.deteringconsulting.com/hubfs/Stock%20images/Business%20woman%20making%20a%20call%20me%20sign%20and%20smiling.jpeg
---

# Cost Recovery Consulting Service Offering

## Cost Recovery Consulting 

### **Service Overview**

Our [**Cost Recovery Consulting**](https://www.deteringconsulting.com/cost-recovery-consulting-for-sap-supplier-recovery) service empowers OEMs and manufacturers to recover the maximum possible value from their suppliers for defective or non-compliant parts. Leveraging the SAP ACS Warranty Management solution — SAP's premier warranty platform — we implement structured, data-driven processes that optimize the supplier recovery lifecycle. From claim identification to supplier reimbursement, we help you turn warranty failures into financial wins. 

> Note: According to Warranty Week, about 30% of recoverable cost are never recovered.  

###  **Core Service Components**

1. **Warranty & Supplier Recovery Process Optimization.**  
   ✓ Streamline and automate automated supplier recovery workflows.  
   ✓ Align process logic with real-world defect and return scenarios.
2. **SAP ACS Warranty System Configuration.**  
   ✓ Configure and optimize SAP WTY (LO-WTY) + ACS for supplier recovery.   
   ✓ Customize warranty object categories, claim types, and statuses.
3. **Supplier Contract & Policy Integration.**  
   ✓ Map commercial terms into SAP ACS logic.  
   ✓ Ensure contract traceability for every claim.
4. **Claim Validation via Data Intelligence.**  
   ✓ Use service history, inspections, and defect data for validation.  
   ✓ Enable audit-friendly, rule-based automation.
5. **Analytics & Recovery KPIs.**  
   ✓ Recovery Rate (%), Cycle Time, Claims Value Recovered.  
   ✓ SAP Embedded Analytics and SAP Cloud Analytics dashboards available.
6. **Governance & Training.**  
   ✓ Set up program governance and escalation paths.  
   ✓ Train warranty, procurement, and operations teams.

### Who We Serve

- OEMs & Tier 1 Suppliers   
  (Auto, Aerospace, Medical, Transportation, Heavy Equipment industries )
- Enterprises running or migrating to SAP S/4HANA 
- Organizations with significant warranty cost exposure

### **Value Delivered**

- Increase supplier recovery revenues by possibly 3–5x:   
  Project pays for itself --> Short ROI
- Reduce manual claim processing by up to 70%
- Improve negotiation leverage and supplier accountability
- Enhance compliance and traceability with audit-ready data

**Ready to Turn Warranty Costs Into Supplier Credits?**  
Reach out to explore how our SAP cost recovery solution approach can unlock millions in cost recovery and provide valuable financial resources!

> Complete the form to take next steps!

 

## Cost Recovery Consulting FAQs

 OUR FREQUENTLY ASKED QUESTIONS

#### [ What are supplier recovery solutions? ](https://www.deteringconsulting.com/cost-recovery-consulting#collapse1-widget_1773473732249)

Supplier recovery solutions are automated, AI-drive systems and processes designed for manufacturers (OEMs) to reclaim costs for defective, failed, or warranty-covered parts from suppliers.  These solutions improve financial recovery percentages, enhance supplier accountability, and improve supply chain efficiency by streamlining claim creation, validation, and resolution.

**Key Features and Capabilities:**

- **[Automated Claim Generation](https://www.google.com/search?client=firefox-b-d&q=Automated+Claim+Generation&mstk=AUtExfCTQIUUEqVJpVZdBl_gMYveLizDr7OQaaqxwF5tqtPFyBb7nBkbUFhPNrleLxQmV0yTKNXMzR-d1YrGRl-1UhrvRJEVz35CY3SU7F6l-BD0Wd9C6_wCgHsD0fgmasbpsiBKEySE17WppCzorTCXN7f5KP-PpmkaXx1YfLs_Cze1rP4&csui=3&ved=2ahUKEwiT3NHL756TAxUZcKQEHVGbNeMQgK4QegQIAxAB):** Systems automatically trigger claims against suppliers once dealer claims are approved, minimizing manual errors and delays.
- **[Supplier Portal and Collaboration](https://www.google.com/search?client=firefox-b-d&q=Supplier+Portal+and+Collaboration&mstk=AUtExfCTQIUUEqVJpVZdBl_gMYveLizDr7OQaaqxwF5tqtPFyBb7nBkbUFhPNrleLxQmV0yTKNXMzR-d1YrGRl-1UhrvRJEVz35CY3SU7F6l-BD0Wd9C6_wCgHsD0fgmasbpsiBKEySE17WppCzorTCXN7f5KP-PpmkaXx1YfLs_Cze1rP4&csui=3&ved=2ahUKEwiT3NHL756TAxUZcKQEHVGbNeMQgK4QegQIAxAD):** Centralized platforms provide, or, in the case of [SAP](https://www.sap.com/documents/2025/08/ee9e609a-167f-0010-bca6-c68f7e60039b.html), allpw suppliers to access real-time data on claims, part returns (RMA), and performance metrics.
- **[Validation and Documentation](https://www.google.com/search?client=firefox-b-d&q=Validation+and+Documentation&mstk=AUtExfCTQIUUEqVJpVZdBl_gMYveLizDr7OQaaqxwF5tqtPFyBb7nBkbUFhPNrleLxQmV0yTKNXMzR-d1YrGRl-1UhrvRJEVz35CY3SU7F6l-BD0Wd9C6_wCgHsD0fgmasbpsiBKEySE17WppCzorTCXN7f5KP-PpmkaXx1YfLs_Cze1rP4&csui=3&ved=2ahUKEwiT3NHL756TAxUZcKQEHVGbNeMQgK4QegQIAxAH):** Digital tools ensure claims are backed by necessary documentation, such as fault codes, photos, and inspection reports.
- **[Financial Settlement Integration](https://www.google.com/search?client=firefox-b-d&q=Financial+Settlement+Integration&mstk=AUtExfCTQIUUEqVJpVZdBl_gMYveLizDr7OQaaqxwF5tqtPFyBb7nBkbUFhPNrleLxQmV0yTKNXMzR-d1YrGRl-1UhrvRJEVz35CY3SU7F6l-BD0Wd9C6_wCgHsD0fgmasbpsiBKEySE17WppCzorTCXN7f5KP-PpmkaXx1YfLs_Cze1rP4&csui=3&ved=2ahUKEwiT3NHL756TAxUZcKQEHVGbNeMQgK4QegQIAxAJ):** Integration with ERP systems (like SAP) allows for efficient financial reconciliation and tracking of open remittances, according to [Detering Consulting](https://www.deteringconsulting.com/blog/6-steps-to-using-the-sap-automotive-dealer-portal-for-supplier-recovery).
- **[Performance Analytics](https://www.google.com/search?client=firefox-b-d&q=Performance+Analytics&mstk=AUtExfCTQIUUEqVJpVZdBl_gMYveLizDr7OQaaqxwF5tqtPFyBb7nBkbUFhPNrleLxQmV0yTKNXMzR-d1YrGRl-1UhrvRJEVz35CY3SU7F6l-BD0Wd9C6_wCgHsD0fgmasbpsiBKEySE17WppCzorTCXN7f5KP-PpmkaXx1YfLs_Cze1rP4&csui=3&ved=2ahUKEwiT3NHL756TAxUZcKQEHVGbNeMQgK4QegQIAxAN):** Dashboards track supplier reliability and quality KPIs, enabling data-driven supplier management

 

#### [ What is SAP powered cost recovery consulting? ](https://www.deteringconsulting.com/cost-recovery-consulting#collapse2-widget_1773473732249)

SAP-powered cost recovery consulting involves specialized services that leverage SAP software—particularly modules like **Supplier Recovery (SR)**, **Advanced Returns Management (ARM)**, to automate and maximize the recovery of expenses, warranty claims, and vendor rebates. These consultants analyze, configure, and optimize SAP systems to identify "missed money," such as un-reclaimed warranty costs from suppliers or uncollected rebates, directly within the enterprise resource planning (ERP) environment.

**Key Aspects of SAP-Powered Cost Recovery Consulting:**

- **Automating Warranty Claims:** Consultants implement SAP ACS Warranty Management to automate the entire lifecycle, from detecting a failure to filing a claim and booking the financial posting, significantly speeding up the recovery of lost revenue.
- **Supplier Accountability & Recovery:** The consulting process involves setting up systems that track vendor performance, ensuring that suppliers pay for defective parts or failed services. This often includes reverse logistics (handling cores/returns) to maximize supplier reimbursements.
- **Rebate and Chargeback Optimization:** Specialists configure tools to track purchasing rebates, quantity-based discounts, and vendor funding programs, ensuring that all owed rebate income is fully collected.
- **Process Improvement with Data Analytics:** Consultants use tools like SAP Signavio Process Intelligence and SAP Fiori to analyze transactional data, identify inefficiencies (e.g., invoices that skipped approval), and uncover financial leakage.
- **Integration with Core Systems:** The solutions are typically integrated into SAP S/4HANA or SAP ECC systems, allowing for real-time visibility into transactions, claims status, and vendor interactions.

**Benefits of This Type of Consulting:**

- **Faster Revenue Recovery:** Automated claims, such as those implemented by Detering Consulting for clients, lead to quicker financial settlements.
- **Reduced Financial Losses:** By identifying un-claimed warranty and vendor incentives, companies reduce their total cost of ownership and increase profitability.
- **Improved Efficiency:** Moving from manual, fragmented processes to an automated SAP environment reduces human error and boosts productivity.

 This specialized consulting is crucial for asset-intensive industries (e.g., automotive, manufacturing, transportation) that experience high volumes of repairs and supplier interactions.

 

#### [ How much can typically be recovered from a supplier using SAP Supplier Recovery? ](https://www.deteringconsulting.com/cost-recovery-consulting#collapse3-widget_1773473732249)

Implementing SAP Supplier Recovery (specifically within SAP Warranty Management or SAP ACS Warranty Management) can significantly improve the amount of warranty costs recovered from suppliers, with some programs **estimating** that supplier responsibility for warranty costs can be increased to up to **30% of total warranty claims**. By automating the recovery process, companies can, in some cases, achieve **substantial increases in recovery rates** and reduce claim cycle times by over 40%.

**Key Recovery Areas and Benefits**

- **Warranty Costs:** The primary focus is recovering costs for defective materials or parts from suppliers, reducing the overall financial burden of warranty repairs on the manufacturer.
- **Working Capital:** Tighter contract compliance and improved procurement processes within SAP can unlock **$5M–$15M in working capital** recovery.
- **VAT Recovery:** SAP Concur enables the recovery of VAT on vendor invoices, including historical receipts.
- **Key Process Improvements:** 
    - **Automation:** Reduces manual effort in tracking and filing claims by roughly 80%.
    - **Transparency:** Provides shared dashboards with suppliers, reducing disputes and accelerating the approval of claims.
    - **Accuracy:** Reduces overpayments and ensures that contractual agreements are accurately applied.

**Impact on Key Performance Indicators (KPIs)**

- **Recovery Rate:** Substantially increased through data-driven and automated claims management.
- **Claim Cycle Time:** Reduction of over 40% in processing time.
- **Supplier Accountability:** High adoption of supplier scorecards (up to 98%) helps enforce accountability.

For maximum effectiveness, the solution should be fully integrated into the SAP ERP system, such as SAP S/4HANA, to allow for seamless interaction between procurement, quality management, and finance.

Your particular results depend on your current processing volumes.  Before every engagement, we do a deep dive analysis to set targets using your actual data.

### Request Cost Recovery Consulting

![](https://dc.ads.linkedin.com/collect/?pid=296796&fmt=gif)

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