3 ways manufactures & distributors to identify & combat vendor fraud
MANUFACTURING INSIGHTS |
In many industrial products companies, there is often a disconnect between the finance and accounting functions and the purchasing function. The result is that purchasing operations are not monitored for fraud risk and control.
Purchasing frauds are sometimes difficult to identify because they involve schemes where the money goes directly to the manager or employee of the company making the purchase. Often, the kick-back to the employee is built into the cost of the products being purchased.
While the form this type of fraud takes depends on the types of supplies, the nature of suppliers and other factors, Three ways to identify and combat vendor fraud provides meaningful guidance to understanding common vendor fraud schemes as well as best practices for combating and preventing them.