Deloitte Survey: Organizations In Need of Data Analytics to Detect Supply Chain Fraud, Waste and Abuse

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Apr 03, 2014, 07:55 ET

NEW YORK, April 3, 2014 /PRNewswire/ -- As complexity in global supply chain networks continues to increase, less than one-third (26 percent) of business executives are using data analytics tools and processes to help manage third party relationship risks, according to a new Deloitte survey. Thirteen percent of those surveyed are still learning how to use analytics software and 22 percent use no data analytics at all.

"Many market leading companies leverage advanced data analytics tools and forensic accounting to identify anomalies in their transactional data," said Mark Pearson, principal, Deloitte Financial Advisory Services LLP. "Using a forensic mindset when analyzing big data can provide value to an organization by adding context to suppliers and transactions, potentially adding to increasing profits and mitigating the risk of fraud, waste and abuse."

Nearly one-third (31 percent) of business executives surveyed said their organization has faced supply chain fraud, waste or abuse in the past 12 months. Forty percent of these executives have a program in place to detect and thwart supply chain abuse, while 28 percent of respondents indicated their organizations do not have a program in place. Additionally, 23 percent of respondents monitor their third party relationships less than once a year (13 percent) or not at all (10 percent).

"Globalization, regulation and economic volatility are some of the top issues adding to the complexity of today's supply chain," said Larry Kivett, partner, Deloitte Financial Advisory Services LLP. "Failure to adequately and actively monitor supply chain relationships can substantially increase a company's risk of significant financial losses, as well as exposure to legal and regulatory investigations, civil and criminal litigation, and reputational damage."

Respondents said the biggest challenge to their organizations' supply chain fraud detection capabilities was acquisition of a new entity (25 percent).

About the online poll
More than 2,600 professionals from industries including consumer and industrial products; public sector; technology, media and telecommunications; and, financial services responded to polling questions during a Feb. 26, 2014 webcast, titled "Supply Chain Forensics: Identify Fraud, Waste, and Abuse in Your Organization." Click here to listen to the webcast.

As used in this document, "Deloitte" means Deloitte Financial Advisory Services LLP and its affiliate, Deloitte Transactions and Business Analytics LLP. Deloitte Transactions and Business Analytics LLP is not a certified public accounting firm. Please see http://www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

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SOURCE Deloitte