NEW YORK, Nov. 8, 2017 — During the past four years, use of analytics to mitigate third-party supply chain fraud, waste, and abuse risk has jumped to 35 percent in 2017 from 25.2 percent in 2014, according to a Deloitte poll.
“It's encouraging to see more organizations using analytics to help prevent and detect financial abuses within supply chains each year,” said Mark Pearson, Deloitte Risk and Financial Advisory forensic principal, Deloitte Financial Advisory Services LLP. “Unfortunately, increased vigilance doesn't translate into lower instances of fraudsters trying to perpetrate their schemes. Even the most advanced analytics users should work to constantly evolve their efforts to stem supply chain fraud, waste, and abuse.”
Between 2014 and 2017, an average of 30.8 percent of poll respondents reported at least one instance of supply chain fraud, waste and abuse in the preceding year. However, some industries saw higher and lower rates of financial abuse.
For the third time in four years, consumer and industrial products professionals reported the highest level of supply chain abuse for the past 12 months (39.1 percent), a slight decline from 2016 (39.6 percent). Energy and resources (34.7 percent) respondents also reported a higher than average rate of financial abuse in 2017, dropping a bit from 2016 (35.9 percent). Life sciences and health care professionals noted a marked decline in 2017 (26.3 percent) from 2016 (36.9 percent).
“In the energy and resources industry, I've seen complex capital projects rife with bribery, bid rigging, collusion, fraud, and other schemes,” said Larry Kivett, Deloitte Risk and Financial Advisory forensic partner, Deloitte Financial Advisory Services LLP. “Beyond reducing sole-sourced procurement to manage risk, supply chain executives can also prevent financial abuses by working to improve supplier invoicing timeliness, accuracy, and approval processes.”
Pearson concluded, “From a life sciences and health care perspective, I'm surprised to see such a big drop-off in reports of financial abuse from 2016 to 2017. But, I wouldn't take that slowdown as a reason for supply chain executives to get comfortable. Even in highly regulated industries, there are still motives for bad actors to commit supply chain abuses. Managing supply chain risk is a constant effort.”
About the online poll
On June 28, 2017, a Deloitte Dbriefs webcast titled, “Supply chain fraud, waste, and abuse: The growing role of forensics and analytics,” polled more than 3,220 professionals about their use of supply chain forensics and analytics. Respondents work in industries including consumer and industrial products (28.4 percent); financial services (20 percent); technology, media and telecommunications (9.7 percent); life sciences and health care (7.4 percent); and energy and resources (6.7 percent). Similar online polls were conducted in February 2014, February 2015 and January 2016. Answer rates differed by question.
Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world's most admired brands, including more than 85 percent of the Fortune 500 and more than 6,000 private and middle market companies. Our people work across more than 20 industry sectors to make an impact that matters — delivering measurable and lasting results that help reinforce public trust in our capital markets, inspire clients to see challenges as opportunities to transform and thrive, and help lead the way toward a stronger economy and a healthy society. Deloitte is proud to be part of the largest global professional services network serving our clients in the markets that are most important to them.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the “Deloitte” name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member firms.
View original content with multimedia:http://www.prnewswire.com/news-releases/deloitte-poll-finds-use-of-supply-chain-fraud-analytics-on-the-rise-300551846.html
Latest posts by Maria Burns (see all)
- Tidal Energy Market Size, Analysis, Trends, Report, Share, Investment Opportunities and Forecast to 2023 - February 23, 2018
- THEKEY reaches Cooperation on Research of Security Supervision Mechanism of Social Security Data Socialization - February 23, 2018
- Current Edition of the Rigaku Journal Features X-ray Analysis News and Technical Articles - February 23, 2018