Time to target supply chain fraud

LinkedIn +

Managing supply chain risk is a vital task, but to what extent are organisations targeting fraud in the supply chain?

A recent poll of professionals by Deloitte across a range on industries found that almost one third saying that their company had experience fraud, waste or abuse in its supply chain during the previous 12 months.

That 31.3 per cent that had experienced fraud compared to 24.6 per cent that had not, while 46.6 per cent were don’t knows.

Some 2,660 professionals participated in a Deloitte Dbrief webcast entitled “Fraud risk assessment: Escalating the battle against supply chain fraud, waste, and abuse”.

There were clear differences between industrial sectors: consumer and industrial products showed the highest rate of fraud at 37 per cent – although this was down on the 42 per cent recorded in a similar survey two years ago.

Life sciences and healthcare has seen a steady rise – from 31 per cent two years ago to 36 per cent in the latest survey. Energy and resources, at 34 per cent was up from 27 per cent two years ago. The lowest rate was in financial services at 25 per cent, although this is up from 24 per cent two years ago.

The poll found that many organisations have quite a way to go in using analytics to manage fraud risk – only 8.6 per cent were described as at an “advanced” stage of using analytics to manage third party relationships and forecast for financial risks to the supply chain. Some 20.6 per cent were using analytics, but only to manage third party relationships. More than a third either didn’t use analytics at all, or had the software but were still learning to use.

It is clear from all this that many organisations are still missing out on the opportunity to combat fraud more effectively.

Malory Davies

Share this story: