KPMG Sales and Distribution Leakage Detector is a proprietary tool that uses algorithms and advanced machine learning model to identify anomalies in sales and sales-led initiatives, such as indicators of fictitious outlets/customers and secondary sales, miscommunication/manipulation of secondary schemes, among others.
Need for the tool
Organisations spend substantially on marketing and distribution activities to enhance their sales, have a wider geographical reach, spread their credit risk and create brand awareness of their products. The high rewards provided to sustain growth and increase sales are often accompanied by high risks that need to be monitored on an ongoing basis. It is pertinent for organisations to take necessary steps to minimise leakages in their systems caused due to such risks, as these significantly impact the working capital and result in operational and reputational losses to organisations.
Sales and distribution spends are prone to leakages primarily due to:
- Vulnerabilities in various systems, such as Distribution Management System (DMS), Sales Force Automation (SFA), ERP system and merchandising portal, implemented by organisations
- Involvement of multiple third parties in the sales and distribution process
- Large volume of transactions may have relatively less value individually, but substantial impact, when aggregated.