Continuous Monitoring for Procurement Integrity (“PI”) empowers businesses to proactively detect, investigate and mitigate fraud in the procurement process through a powerful combination of artificial intelligence, integrated forensic capabilities and pre-configured analytic scenarios.
As recent studies estimate, a typical organization loses 5 percent of its annual revenue to fraud, PI is strategically poised to reduce the impact of fraud1, waste and abuse to organizations. From circumvention of controls via split invoices or abuse of access to duplicate payments, fictitious vendors or bribery and corruption, Procurement Integrity continually monitors the procure-to-pay cycle to identify, score and prioritize high risk and potentially fraudulent activities.
All organizations rely on external vendors, suppliers or other third parties to support their flow of commerce and operations and to deliver goods and services to their clients. To ensure the procurement life cycle runs smoothly, organizations have procedures and controls in place to make sure they obtain the correct items at the right time with acceptable conditions and agreed-upon quality.
But like any other business process, the procurement process is never perfect, and both honest mistakes and fraudulent activity can adversely affect the financial and reputational health of the organization. There could be duplicate invoices, ghost vendors, false invoices, billed goods that aren’t requisitioned and/or delivered, and billed goods that have an excessive price. Circumvention of procurement controls have affected about 75 percent of organizations in the last three years, including Fortune 500 companies, small businesses and government agencies. In addition to the financial losses, there is significant risk to reputation and brand when these events are aired publicly in the media. Depending on the industry, significant regulatory fines are also a risk.
SAS and KPMG jointly offer an industry leading Procurement Integrity solution built upon three key pillars:
Our approach combines the depth of KPMG’s forensic knowledge and expertise with the innovation and capabilities of SAS’s technology to deliver a scalable and cost-effective solution, helping ensure maximum detection, investigation and reporting capabilities while minimizing wasted time and effort. We empower our customers to enable trust in their procurement process through a distinctive combination of predictive modeling, artificial intelligence, and integrated forensic capabilities, to proactively detect, investigate and anticipate fraud.
Detect & mitigate procurement fraud and manage your business with more confidence
SAS and KPMG’s integrated and dynamic Procurement Integrity solution, tailored for the needs of our clients by industry, geolocation and operating model, provides value driven insights that enhance procurement risk management and drive tangible cost savings and efficiency.
Customer benefits include: