Supply Chain

The scale of identifying fraud, loss and risk in procurement supply chains can be a daunting task.  To achieve this effectively, a blend of investigative and specialist analysis is required.  With our extensive experience analysing supply chain vulnerabilities and assessing risk in developing countries, we are well placed to identify potential threats.

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SERVICES

FRAUDULENT INVOICING

Our in-depth analysis allows identification of fraudulent invoicing, normally in conjunction with wider supply chain analysis, to determine losses and insider theft / collusion.

Case study

The issue.   A client was concerned that they were receiving fraudulent invoices.

Our approach.   All invoices over the three years of service were analysed and compared to other data to identify whether fraudulent invoicing had occurred.

The outcome.   It was concluded that our client had been over billed by ~$750,000 during the three-year period.  Our findings were used in a legal case against the supplier which led to recovery of the money. Recommendations of Assaye Risk were also implemented to prevent future loss.

PROCESSES AND PROCEDURES REVIEW

Supply chain processes and procedures are often the root enablers of fraudulent activity conducted by insider threats.  Assaye Risk are experienced at providing analysis of existing processes and procedures to determine security loopholes and weaknesses which can be exploited, and identifying associate fraudulent activity.

Case study

The issue.   Our analysis identified significant discrepancies between processes and procedures documented within a client’s supply chain function and the IT systems and employee practices followed on the ground.

Our approach.   A full review was conducted of documented versus ‘in practice’ systems, processes and procedures.

The outcome.   It was concluded that the client had losses totalling hundreds of thousands of dollars attributable to issues identified.  The supply chain manager adopted Assaye Risk’s recommendations which included the re-evaluation of governing documentation and IT systems as well as the (re)training of key personnel in order to close loopholes and provide greater oversight of activity.

INVESTIGATE PRICE DIFFERENCE

Seemingly small variations between the agreed and invoiced unit cost of items can be compounded by large quantities over a prolonged time period.

Case study

The issue.   A client was concerned that suppliers were violating contracts by increasing the unit price of items after securing their business.  In the belief that internal buyers were aware and facilitating this activity, Assaye were asked to investigate.

Our approach.   A system was set up which compared the agreed unit price of items and the actual purchase price of items. This identified significant variations and allowed us to produce evidence and quantify losses.  The names of suppliers and buyers involved in these transactions were established.

The outcome.   The supply chain manager used this data to seek credit notes and negotiate more favourable contracts with suppliers.  Weaknesses in processes and procedures which had facilitated this activity were identified and addressed.  One measure implemented was the provision of an enhanced audit on a monthly basis to monitor for any further fraudulent activity.

SUPPLY CHAIN RISK ASSESSMENT

Supply chain risk assessments are delivered to identify the specific risks associated with key point vulnerabilities, continuity of supply and external threats to clients’ supply chain.

Case study

The issue.   Our client operating in a developing country was suffering supply chains disruption through a host of issues including port closures, worker strikes, weather and clearance of goods.

Our approach.   Through our network of relevant professional contacts and on-the-ground research we quickly identified, analysed and understood cause of the key risks. This knowledge was combined with detailed analysis of the client’s critical material requirements and lines of supply.

The outcome. We identified existing and potential areas of supply chain risk exposure. Based on this information, the client was able to implement actions to prevent future disruption to operations.

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