Detecting global supply chain fraud, waste and abuse

 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?

10 Tactical Choices for Designing Your Global Supply Chain

Global Supply Chain

In the 1990s, with the emergence of the concept of supply chain management, global supply chains are gone. This is possible thanks to a large part of the information technology (the subject of a separate article). Globalization suppliers in different countries, configured to operate stores for customers overcome the world, so that the freight transport system in the world and the best country in the movement of production. Examples of added in Germany and Japan for the value of the car, the United States advanced equipment and software with handheld shower heads Chinese work and heavy industry, shipbuilding and Korea is a major heavy industry, India, the lowest development software, France and Italy fashion and other luxury items.
The researchers took the supply chain 15 choices we make in the development of the global supply chain; express or implied. This article gives a brief description of the 15 options to optimize your global supply chain (for service and minimize the customer). 15 The options are:

• Consolidation
• Postponement
• Responsiveness
• Lean-ness
• Agility
• Flexibility
• Speed
• Value Contribution
• Core Competency
•  Basic Skills 

Consolidation:

is to combine the assets to take advantage of economies of scale. You can produce in large systems, the strengthening of sales increased by larger vehicles, boats and even software systems vendors offer through the exchange of different ERP systems. Consolidation has negative aspects. Typically results in a large stock of consolidation and the increase of the distance to the customer the ability to anticipate the needs of customers to reduce.

Postponement:

a form of consolidation. HP praised the end of production in a factory; worldwide shipping, no regional distribution centers and DCS configure each printer by food and good packaging. Due to the delay of the final product, the company is able to hold a license to produce units (sales), taking advantage of economies of scale. The cost may be lower because the granules can be packaged in a container at any time. Move also reduces the name, the lowering of the content. The decline in investment shares is not because there are fewer parts, because the demand is final demand, but in the inventory point because of the delay SKU complete change in the final product safety individual inventory reduced. Cable strategy is greater when the product is used for this type of production system. In other words, there is no problem delaying the product development planning strategy.

Efficiency, low awareness, flexibility, adaptability, flexibility and speed are associated with subtle differences.

Responsiveness:

is the ability to meet customer needs. This can respond to customer orders, changes in customer requirements or adaptation of products and services to the specific needs of the organization and meet fast service.

Lean-ness:

It's a waste prevention strategy in all processes. Developed by Toyota, lean process design systems wasted inventory movements and hope to minimize customers.

Agility:

is the ability to power plants, switching, design and production to the changing needs and demands reconfigure.

Adaptability:

   is the cultural aspect of the organization and supply chain. Adaptation overcomes the problems of society, such as the destruction of such chain technology. The pressure on margins, many important components in one or two suppliers in the world; and production companies mentioned together in the world. Some chipset, hard drives, monitors, capacitors, etc., Are amplified in different contexts. If the production cell for chips caught fire in Mexico, a number of redundant backup systems companies and built their safety. Then there was the flooding in Thailand, hard drives and some plants under water, some with a variety of technologies (SSD) changed his company's products.

Flexibility:

 is closely linked to the ability, but often increases with changes in the supply chain  or connected because of the flexibility of reducing the production process.

Speed:

speaks for itself. But praised the overall management of the supply chain, the balance sheet as a key differentiators. Michael Porter in his revolutionary strategy as a competitive scale to overcome a difficult hurdle for newcomers. But the economy focused on the technology of today, businesses to quickly overcome the scale. For example, Facebook product changes (COD) per day. New features will be added, and those who work every day of the year (even on weekends) will be removed. Speed Supply Chain appreciate the opportunity to serve customers quickly respond quickly and minimize costs.

The amount of the debt, skills and interconnected based differentiation strategies.

Value Contribution:

The only supply chain value of the company. Therefore, the company is part of the supply chain. Often worth another item strategic decisions. "Value" is the production of low-cost, flexible service and essential skills for the development and construction. As already mentioned, in the global supply chain, there are still many opportunities for members. This election is a huge choice of suppliers with the highest value.
But also allows them to where the company to choose the customers with higher added value. This can be absurd ... a company that customers can choose, but how many companies have a big bet on one side of the supply chain, Dell, Apple has not? How many companies have given US automaker Toyota / Honda / Nissan, just to see, Ford and GM to increase market share, after the recession in 2009?

Core competence:

This is something that the company will not be shared with partners. From a global perspective, the basic skills are often stay at home to prevent the theft of intellectual property.