Supply Chain FraudBy
A Deloitte survey shows the level of supply chain fraud is unchanged for the third consecutive year. Deloitte surveyed more than 2,660 professionals for its latest survey on supply chain fraud. The results, “Assessing Supply Chain Risk: Fraud Levels Remain Unchanged,” show that 30% of respondents experienced supply chain fraud, waste, or abuse in the prior year. Only 29.3% of the respondents reported using analytics to mitigate supply chain fraud and associated risks, while 67.1% were confident their staff would report perceived fraud.
In terms of industries, companies in the life sciences and healthcare (up 4% to 35%) and in energy and resources (up 7% to 34%) saw supply chain fraud rise from 2014 to 2016. Those in technology, media, and telecommunications, however, reported a drop of 6% from two years ago. Within organizations, project managers, invoice approvers, and procurement professionals represent the most significant risk of committing or participating in supply chain fraud.
The poll found that only 27% of the respondents’ organizations conduct supply chain fraud analysis on unpaid invoices prior to payment. Deloitte also found that 13.7% of respondents’ organizations have analytics software but aren’t using it, while another 19.3% use nothing at all. As a result of these practices, observes Mark Pearson, Deloitte Advisory principal, “Many organizations are trapped in a pay-and-chase model for fighting supply chain fraud—invoices are paid first, then retribution is sought much later when fraud is found, if it’s found at all.”
For more on the survey and the results, go to http://bit.ly/241zne8.