Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
Procurement fraud and risks to the supply chain
Martin Dubbey Managing Director
Copyright Dextera Global: COMMERCIAL IN CONFIDENCE
Risks to the supply chain from Procurement fraud
Procurement fraud and corruption are linked activities. This leads to contamination of the supply chain and the increase of the potential risks to a company from fraud, theft and the substitution with sub standard goods.
The impact of fraud in the supply chain
• Stolen goods.• Lost and damaged goods.• Sub standard and dangerous goods entering the home market.
• Serious financial loss leading to loss of profit and shareholder dissatisfaction.
• Brand reputation destroyed.
Others Don’t!
Recent examples of procurement and supply chain fraud
• Selling fake bomb detectors to Iraq.
• Horse meat scandal.
• Selling faulty photocopiers to schools and local authorities and then getting them fixed by the fraudulent company.
Recent Examples
• Fake Banking system.
• Diversion and counterfeit fraud.
• False identities
• Fictitious supply chains.
Ficticous supply Chain
Supply chain fraud how to minimise the risk
• An independent overview of your existing supply chain including review of procurement.
• Supply chain security is an essential part of the due diligence process.
• Obtain recognition to enable your goods to move freely across boundaries
• Conduct regular risk management and risk assessment of your supply chain
Supply Chain Security
• Qualified supply chain security experts.
• Continual overview and managing risk both physical and reputational.
• Profit Protection.
Cyber‐ An innovative approach to tackling supply chain fraud
• Checking a website is not sufficient when conducting due diligence checks.
• How do you know that the website was not set up to target the company seeking to set up a new chain of supply?
A complete managed service along the supply chain
• Due diligence checks.• Cyber monitoring.• Tracking of high value goods.• Intelligence assessments.• Surveillance.• Investigation.• Security assessments and audits.
Questions ?