Though it may be difficult to admit, every supply chain is susceptible to fraud. A survey conducted by Deloitte Financial Advisory Services indicated that 28.9 percent of participants reported some type of supply chain fraud occurring somewhere in their operation over the prior 12 months. That statistic is bad enough, but it doesn't account for the instances of fraud that have not been discovered or reported. This suggests that it's important for organizations of all sizes to inspect their supply chain for possible fraud.
Supply chain fraud occurs whenever there is a breach of confidence. It's normally committed with the intention of illicitly lining someone's pockets, and it can occur at any point in the chain. Employees, suppliers, contractors and customers could all be involved, either alone or in collusion.
The company that can reliably detect it is less susceptible to supply chain fraud. Simply put, if a perpetrators know they are likely to get caught, they will try their scams elsewhere. Many companies whether they are large or small are increasingly relying on technology to protect them from fraud. Automation, the use of electronic documents and an integrated accounting system can all go a long way toward detecting and preventing supply chain fraud.
Supply chain fraud can happen in any organization. Constant vigilance is essential to ensuring that there is no loss of money or needless waste because of fraud. Many new supply chain technology innovations make it easier than ever for companies to protect their supply chain.
Kuecker Logistics Group’s technology can help you avoid supply chain fraud. Call (816) 348-3100 to learn more.