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Recognizing the Consumer's Need For Unbiased Information in Common Vendor Service Audits

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Accounts Payable Department knows very well; Complexity is the Joker in the deck.”

 Regarding your utilities, you’re intentionally and deliberately misled.

Contracts are written in such a technical language and invoices received are generally so incomprehensible the Accounts Payable Department is overwhelmed.  The result is accounts payable pays the invoice; many times with no questions asked because your company requires these services and they know it.  With one department requesting these services and signing contracts and another department paying them they know little real crosschecks are in place.  “We call it Blind-By-Design.”

Without being an industry insider how do you know if you’re paying too much for services, or if you’re even getting a fair shake?  The answer is you don’t; all you know is what your service provider tells you. Regarding your utilities you’re intentionally and deliberately misled. The standing joke is if you can’t figure it out; IT’S ABOUT THE MONEY.  The truth be told when it’s your money, it’s not funny. 

Service Providers Dirty Little Secrets:

They know your weaknesses, and generally short staffed and exploit it to their advantage.
The knowledge base is stacked against you primarily with confusion, deception and privileged information.
A lack of real information keeps you from the key knowledge with which to make informed decisions.

Utilities stand as the third largest expense most companies face behind personnel and real estate, and are generally left to the vendor with regards to the amount you pay.  Millions of dollars go through companies hands with out many crosschecks in place, and no questions posed.  Millions of dollars paid out just on vendor trust; with the hope they are treating you fair?

Why Does Accounts Payable Run on Vendor Trust?

Service providers use confusion and deception in their billing practices.

The major service providers make complexity a certainty when an invoice leaves their company. “Blind By Design.”  Contracts are written in such a technical language, and the invoices have become so incomprehensible; the service provider knows you’re overwhelmed, and understaffed and use this to their advantage.  Ever wait on hold for your service provider to answer your call and then give up?  If you’re call was so important you think they would answer the phone right, wrong, all by design.

 SERVICE providers realize through the hypnosis of social conditioning the mind set of the consumer is: “Everything is OK when it comes to invoices they send out and their business practices.”  The facts of statistical analysis show that is generally not the case at all.

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“ALL companies should periodically use an unbiased source to question their supply chain; not doing so can be costly to the company in a variety of ways.”

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Last modified: 08/12/08
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