Procurement

PROCUREMENT HAS CHANGED. SO SHOULD YOUR COMPLIANCE SYSTEM

According to PwC’s Global Economic Crime and Fraud Survey 2020 South Africa,  77% of South African organisations have experienced economic crime with 39% having experienced procurement fraud. This level of risk places the supply chain under scrutiny not only for the financial effects of fraud but the costs associated with investigation and intervention. And all these challenges have only been intensified by COVID-19 factors such as the need to work remotely, reduced staff numbers and a sharp increase in digital crime.

The truth is that no business can be without a superior procurement management and monitoring solution – one that uses the latest technology to prevent and monitor fraud. Plus, considering the sophistication of today’s criminal activities, there is no room for manual or third-party processes that might waste valuable resources and still leave your business vulnerable to attack.

How to find the right procurement management system?

Many organisations find selecting a procurement management system a daunting task. But this doesn’t have to be the case. To go back to basics, the fundamental function of all procurement systems is to mitigate the risk of a business not complying with legislation, regulations and correct internal policies. Procurement systems must therefore implement rigorous vetting processes and supplier management controls to meet compliance and audit requirements while still being adaptable and user-friendly.

Ideally the system should:

Be flexible and scalable, adapting to changes over time
Be guided by technologies which allow for automated and responsive data analysis
Address key focus areas such as supplier vetting, monitoring of vendors and employees, process and database management, and regular reporting
Offer insight into business risks in order to prevent the financial losses and reputable risks associated with fraud and corruption
Ensure compliance with anti-bribery and anti-corruption legislation

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