Supplier fraud is rising sharply and it may be affecting your supplier network. According to the 2015 Kroll Global Fraud Report, 17 percent of companies experienced some type of vendor, supplier or procurement fraud in the past 12 months. Of the firms that were victims of procurement fraud, 49 percent felt highly or moderately vulnerable.
Between negotiations among multiple suppliers and integrating ERPs into a unified system, it becomes vital to leverage supplier relationships for supply chain resiliency. Multiple suppliers vying for control can lead to internal process breakdowns including delay and errors that impact orders, shipments and data transfer critical to manufacturing success. Often times, suppliers cause internal chaos by:
Requiring your company to develop a way for your ERP to communicate with their systems regarding orders and shipments;Urging your company’s IT staff to develop a way for their systems to communicate with your ERP regarding orders and shipments – commonly done via EDIs or APIs for large-volume suppliers;Attempting to use your preferred portal system to manually log order and shipment data, with little or no training and in the task of doing something different for every customer, potentially causing errors and delays; orUsing outdated processes such as paper invoices, or communicating via phone, fax, and email – causing more labour for your company to transfer the data to your ERP
