SUPPLY CHAIN FRAUD DETECTION
The detection of supply chain fraud encompasses a variety of techniques and methodologies, processes and procedures, and relies on the availability of accurate data in electronic form. It is no longer possible to sift through mountains of paperwork in hopes of manually catching inconsistencies, though this is not to say that a document review would never be in order. Rather, it is necessary to employ analytical programs that can review the increasing volume of information on a timely basis and report anomalies to be reviewed further both programmatically and manually.
To accomplish this requires the movement away from paper-based operations. Readily available and reliable technologies, from barcode applications to Electronic Data Interchange (EDI) are cost-competitive and easily integrated to many Enterprise Resource Planning systems, which are typically the electronic heart-and-soul of an organizationâ€™s operations.
A primary goal is to close the data gaps â€“ places where paperwork exists and data may not well validated for accuracy and integrity. As the data begins to flow smoothly between these previously manual points, the information can be used to validate other transactions and catch anomalies or fraud.
1 = Purchase Order
2 = Shipment
3 = EDI ASN
4 = Receipt
5 = Quality Assurance
6 = Invoice
Other articles in this series:
Guest Author: Norman Katz
Copyright Â© Katzscan, Inc. â€“ Source: Supply Chain Fraud White Paper
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