$1.9M in Overpaid Chargebacks Uncovered in Weeks

ProfitOptics helps a $500M+ medical manufacturer recover lost margin through a precision chargeback audit.

Industry:

Medical Supplies Manufacturing

Revenue:

$500M+

Core Systems:

ERP, spreadsheet-based reconciliation

Focus Area:

Chargeback Audit, Margin Recovery

The Challenge

This manufacturer suspected what many others quietly fear: chargeback and rebate errors were eating away at their margins. Despite strong ERP systems and a capable team, the reconciliation process was slow, manual, and spreadsheet-driven. There was no scalable way to verify if distributor claims aligned with the complex web of contract terms, pricing tiers, and GPO rosters.

The Solution

We performed a focused chargeback audit using our proprietary SmartMatch™ technology, tailored specifically for manufacturers. Over four weeks, we:

Reconciled GPO rosters, price files, item data, and contract terms across fragmented systems

Flagged invalid rebates, expired contract claims, and unit-of-measure discrepancies

Delivered a confidence-scored audit report, record by record, highlighting both financial impact and recoverability

The Results

$1.9M in invalid chargebacks uncovered

from just one record set

~15% of claims

found to be erroneous

95% confidence rate

ERP, spreadsheet-based reconciliation

95% confidence rate

ERP, spreadsheet-based reconciliation

This was only the beginning. That $1.9M came from one distributor relationship—just a fraction of the full landscape. The client now has data-backed validation that they’re leaving millions on the table across hundreds (if not thousands) of additional records.