Value: Reduced procurement costs
Fraud in procurement has existed for centuries and organizations of all sizes and across industries grapple with serious irregularities. While the risk can never be fully eliminated, a procurement analyst or a company can enlist help to leverage advanced analytics to implement controls that limit the likelihood of these occurring.
Procurement fraud stretches across different types of activities, such as falsification or magnification of a need for a product or service, an RFP drafted to favor a vendor, splitting the purchase to fall within thresholds, favoritism by issue a contract on a party nomination basis, There could be instances of collusion with procurement functions in ways that compromise the fairness of the procurement process resulting in higher contract costs.
A procurement analyst can lean on advanced analytics techniques such as Data Mining, Text Mining, Anomaly Detection, and Network Analysis to arrest or reduce the incidence of this damaging flavor of fraud.
Our experts can help with:
- Flagging suspicious transactions that might go undetected.
- Determining the possibility of split purchase orders, duplicate payments etc.
- Indentifying possible buyer-vendor collusions.
- Addressing inefficiencies in the procurement process by identifying differential pricing for similar items.
Leveraging predictive modeling to identify attributes or patterns that are correlated with known fraud.