Thirty percent of surveyed businesses reported that they have experienced some sort of supply chain fraud. So why do only 13% monitor supply chain fraud on an annual basis and only 12% on a quarterly basis? Supply chain fraud comes in a variety of forms, but the two most common types are corruption and conflict of interest. Both types lead to the ‘unlawful loss’ or ‘unlawful advantage’ that establishes supply chain fraud. These types of fraud are typically achieved through direct theft of assets, false reporting and the falsification of performance reports, and technological abuse. Supply chain fraud is a rising concern due to the growing complexity of the supply chain as a whole. While data is now much more available through top technologies such as ERP and WMS, many of the executives surveyed are not deploying data analytics tools that can help in identifying instances of fraud. The industries suffering most from supply chain fraud are life sciences/healthcare and energy/resources. Both of these industries saw significant fraud increases between 2014 and 2016. These operations, among all others, would benefit from a regularly scheduled audit program. This has proven to be the most effective method in identifying, eliminating and preventing fraud. Record and communicate these procedures to every team member to establish clear expectations and standards. To learn more about solutions available to prevent supply chain fraud contact Datex experts today at or 800.933.2839 ext 243.

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