[ INSIGHT ] PROCUREMENT
by Costas Xyloyiannis CEO and Co-founder, HICX costas.xyloyiannis@hicx.com | 312-646-5311
Team Up to Deter Supplier Fraud Despite their best technology and efforts, finance leaders continue to battle the ever-evolving tactics of fraudsters. A key reason is that finance’s fraud management strategies are seldom considered in the context of supplier information. Their peers in procurement, meanwhile, manage supplier information daily but the processes they use aren’t designed to prevent fraud.
recorded and stored will change, some of it regularly. And the more suppliers you have, the quicker data will become obsolete. The idea is to put processes in place to support any changes to data, with the necessary checks and balances. Put in place all the necessary data governance and work ows at this stage, to keep data clean. 3. Retain the integrity of all fraud prevention data: single entry point. With supplier data under control, you can establish a single source of truth. Prepare to go big. The goal is to have one supplier dataset—a golden record—that syncs every supplier-facing tool, at any time, right across the business. The trick to achieving this nal step is to build a single front door, through which all new information is checked. If a piece is admitted, it can join the golden record. Too often, quality issues are noticed only at the point at which a piece of data gets used. Front-running this step with an entrance checkpoint will save much pain down the line and reduce the need for hot xes like data cleansing. With a golden record in place, the bene ts can build. When nance and procurement join forces to focus on what each does best, it’s possible to make the most of technology investments and deter fraud. The work is well worth the effort. n
Don’t settle for just the bare minimum needed for suites. Capture every piece of information that every department needs to power every one of its supplier-related tools. All resulting data must be accurate, so check and verify this at creation. Keep your eye on the prize because these processes won’t be a walk in the park. Unfortunately, P2P suites aren’t designed for huge variety in supplier information, so you will need to recon gure the entire supplier-facing tech setup to include 100% of suppliers. When you do, make sure 100% of suppliers can provide information, and give priority to supplier master data. As procurement constructs a robust onboarding setup, give the department all the support it needs. 2. Keep advancing to protect all resulting data: governance. With a coherent process in place to capture each new supplier’s information, make sure the resulting data stays protected because information that has been
This suggests an opportunity for nance: team up with procurement. Together, the departments can build impactful fraud strategies with supplier information at the heart. Supplier information is the Achilles’ heel of fraud prevention. Fraud can appear in the most unexpected places, so having complete coverage and compliance is imperative. Supplier records must be accurate 100% of the time. When they’re not, fraud- ghting people and technology are undermined because fraudsters gain a foothold. When it comes to supplier information, procurement’s experience will be invaluable. That said, this is new terrain, so give them plenty of support. Here are three tried and tested steps to get you ready to team up to ght fraud. 1. Start strong and secure all vital information: onboarding. Fraud can occur anywhere, so aim to achieve a golden record in master data that gives 100% compliance and coverage.
40 Inbound Logistics • July 2024
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