Research and estimates reveal that businesses experience approximately 5% loss in spending each year due to procurement fraud, waste, and abuse, resulting in annual losses ranging from $10,000 to $150,000. However, many individuals may not be fully aware of these risks.
Are you or your business experiencing the same but unable to identify the missing link of where the fraud occurs and how to seal it? Employing continuous monitoring stands out as a proven strategy to enhance and modernize the procurement monitoring process to detect and prevent procurement frauds.
Procurement fraud involves dishonest or unethical activities within the procurement process intended to manipulate or gain an unfair advantage. Detecting procurement fraud can be challenging, but several symptoms or warning signs should be on organizations' radar.
This table delves into the world of procurement fraud, highlighting the signs to watch for. Furthermore, it unveils a superhero in the form of connected contract management solution, revealing which features can help mitigate and prevent specific types of fraud.
It's important for organizations to implement robust internal controls, conduct regular audits, and promote a culture of transparency and ethics to mitigate the risk of procurement fraud. If any of these symptoms are observed, a thorough investigation should be conducted to determine the extent and nature of the fraud.
Instead of investing in multiple procurement solutions that manage your supplier identifications, bid management, RFP management, vendor onboarding, procurement contract negotiations, supplier information management, vendor invoice approvals and payments - opt for a connected contract management solution like Aavenir Contractflow, that offers you the ability to manage each of these functions within a solution on a single data model. It not only avoids duplication of data but also provides insights from connected data.
With its generative AI-powered capabilities, Aavenir Contractflow seamlessly connects legal, finance, and procurement insights, delivering alerts and notifications to users for smart contract authoring, contract and vendor negotiations, risk management, clauses deviation analysis, and more. BOOK A DEMO>>
