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| global supply chain |
The
intricacies of the global supply chain network are increasing almost daily.
It’s a result of new software evolution, and new technologies like computing in
the cloud being developed. This is in addition to new raw material sources
being exploited, and new trading partners being brought into the supply chain process.
The Deloitte global supply chain
forensics survey
In a recent study commissioned by Deloitte, they found that only approximately
26% of business executives are utilizing the new data analytical tools and
processes that are available on the market today. These are tools that can help
to monitor relationships with global
supply chain partners.
According to
the survey, 31% of business executives who took part in the study reported that
their companies had been exposed to some sort of threat from fraud, misuse or
waste. As more businesses begin to switch onto, and take advantage of things
like "Big Data," the risk of damage to the global supply chain intensifies exponentially. But of the 31% of businesses that took part
in the survey, and who did identify the danger, many were not in a position to be
able to counter it. Why?
·
Only
40% of respondents had detection analytics in place
·
28%
of respondents advised they had no programs in place
·
23%
monitor relationships with global supply
chain partners less than once per year
·
10%
did not monitor relationships with global
supply chain partners at all
Larry Kivett
of Deloitte Financial Advisory Service LLP, is reported as saying that the
failure to monitor relationships with global
supply chain partners means that organizations are exposing themselves.
They are open to serious financial losses, discriminatory legal investigations
and actions, and brand image damage.
The Deloitte
global supply chain forensics online survey was a substantial one that took in
data from 2,600 business executives. In addition to the concerns outlined above,
it also revealed that 25% of organizations reported that the biggest danger of
fraud came from the introduction of new supply chain partners. More
organizations need to be aware of this, and should be installing global supply chain analytics as a
matter of urgency.
The impact of global supply chain
analytics across the board
Analytics,
and global supply chain advanced
analytics in particular, are becoming a significant resource for many organizations.
In fact in the forensic survey, less than 20% of businesses didn’t think they
supported their corporate strategies.
Approximately
96% of executives who took part in the survey felt that global supply chain analytics will become crucially important to
their businesses within the next three years. They also believed that
businesses would go beyond introducing just rudimentary analytical technology.
Once advanced analytical software was installed and available, these same
businesses believed that it would be instrumental in facilitating better
informed corporate decision making
Almost one
half of those who took part in the survey agreed that advanced global supply chain analytics would be
a key factor in improving decision-making. Furthermore, two thirds of people
said that they firmly believed that advanced global supply chain analytics plays a significant role
in forcing the pace of business strategy.
Where advanced global supply chain analytics needs to
go from here
The
way that global supply chain
analytics are structured needs to be changed in order to maximize its impact
and benefit. Many executives in various roles within organizations require
analytical data. By restructuring its coordination and its alignment, it can
become of more significant use to a wider audience.
Two of the
biggest key barriers that need to be overcome in order to implement and make
best use out of global supply chain
analytical data are the accessibility to the data itself, and the way that this
data is managed.
Making the best of global supply
chain analytics
What is
apparent, is that whilst global supply chain analytical data is still in its
infancy, the potential for its use in terms of detecting fraud, and helping to minimize
wastage, is as significant as its potential for use in the decision-making and
strategic operations theatres. The more it is used, the more it will evolve. This
will make it an even more critical part, not only of the global supply chain operation, but to company
philosophy, strategy and decision-making.
What ways have you encountered of
steering advanced global supply chain analytics towards spotting fraud?
