Since January 1996 |
Helpful Technologies
In order to reduce supply chain fraud, you
have to be able to detect it. The success to any fraud prevention
program is the perception of detection: the more a person believes they
will be caught doing something wrong, the less likely they are to commit
a wrongful act in the first place.
But perception can only go so far; you need to actually show that there
are mechanisms in place to catch fraud.
Detection of supply chain fraud relies on the ability to cross-check and
validate distinct pieces of information. Moving from a paper-based
operation a paperless one enables a company to more easily and
successfully detect fraud via the use of technology.
Helpful technologies include:
Auto-ID: This includes barcode scanning, radio
frequency identification, and other types of technologies that capture
data electronically instead of manually.
Electronic Data Interchange: EDI and other forms
of eB2B, eB2C, etc. are used to replace paper business documents with
format-standard electronic documents.
An Enterprise Resource Planning (ERP) system with an
integrated Accounting system becomes the data repository for the key
pieces of information and the associated business transaction.
Analytic Software: Whether home-grown programs or
third-party applications, there must be some software that can compare
different pieces of information to determine if fraud exists. |
The failure to securely implement
necessary and appropriate technologies can leave data gaps and a company
exposed to fraud.
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