Procurement scandals haven’t been a priority coverage area on Spend Matters, but that may change soon. Monday's Afternoon Coffee column covered the news, broken by the New York Post, that the chief procurement officer for New York City’s Metropolitan Transportation Authority (MTA) has been fired for allegedly soliciting bribes from a contractor. There is of course a “lady friend” involved in this saga too, but I’ve gotten ahead of myself. But this got us wondering: How does this compare with other procurement-centered crimes? Here is a roundup of recent scandals, some more salacious than others.
The Risk Performance and Compliance Category
Procurement is hardly the only sector excited about IoT. According to a survey of nearly 1,000 enterprise IT buyers worldwide conducted late last year by research firm 451Research, 71% of organizations are already gathering IoT data. Over the course of this year, 90% will be increasing IoT spending. There are still plenty of concerns, such as uncertain ROI, but the top factor impeding IoT deployments is security.
Pierre Mitchell, chief research officer at Spend Matters, joins Icertis to discuss Risk Management Strategies for a Complex World on Thursday, April 6, at 12 p.m. CDT. During the event, they will cover: how to identify the significant risks hidden in contracts, real world stories on how leading organizations have managed risk, the advantages of an enterprise contract management platform and more. Sign up here!
Recently I talked to Mike Bassi, director of partnerships at Runzheimer, a provider of mobile workforce solutions that works with more than 1,300 companies. One of Runzheimer’s areas of expertise is mileage spend, and I was curious to hear about technological advances in expense management from a provider’s point of view — as well as ask about how common low-level expense fraud is.
Last Friday, Spend Matters Founder Jason Busch and Chief Research Officer Pierre Mitchell teamed up to present the webinar Risk and Compliance Management: Embedding Risk Management in Procurement and Supply Chain. Busch and Mitchell began with a segmentation of the types of supplier and supply chain risk and compliance management technologies out there, before moving into the topics of how to embed these technologies throughout your procurement and supply chain functions. They discussed the best ways to create linkages with other areas of procurement technologies, as well as how to create a procurement culture that is risk-aware.
While the area of supply risk management is attracting growing interest and investment from procurement organizations, organizations typically deal with risk on a piece-part basis. That is exactly the wrong strategy, argue Spend Matters analysts Jason Busch, Pierre Mitchell and Michael Lamoureux in their latest report, Spend Matters Landscape Definition and Overview: Supply Risk Management and Compliance. One of their core aims in publishing this analysis, they write, is “to change this perspective and help organizations integrate these supply risk management initiatives more effectively.”
It’s been a difficult few years for Nutella, that delicious chocolate hazelnut spread made by Ferrero. First, it was linked to the loss of critical natural habitat for orangutans, due to one controversial ingredient: palm oil. Then, more recently, dramatic headlines claimed Nutella consumption have bigger health implications than ingesting all that sugar. “Could Nutella give you CANCER?” screamed the Daily Mail. And that was also due to one controversial ingredient: palm oil.
We here at Spend Matters like to go above and beyond, which is why a simple Top 10 list just won't cut it. Join Jason Busch (founder and head of strategy at Spend Matters) and Pierre Mitchell (chief research officer) on Tuesday, January 17 at 12 p.m. Central for The Supply Chain Devil's Dozen: Top 12 Supplier Risks for 2017. They'll cover how procurement organizations can shift their investments and strategies to account for the world's major changes, and how to "map" these risks to their underlying causes (and causes to different types of risk). Sign up here!
This post is part of our 2016 Year-End Procurement Tech Review, in which we offer procurement practitioners a bird’s-eye view of some key vendors and their solutions in select categories. This is the last week of this series, and today we’re highlighting a company in the supplier risk management field.
Avetta, which recently rebranded from its original name, PICS Auditing, has grown considerably since its founding over a decade ago. But while now the company can enable organizations to tackle broader supplier management and risk management initiatives, at its core it still solves a problem that many companies in industries relying heavily on contractors have: proper contractor vetting, credentialing and enablement.
Procurement fraud comes in many forms and types. Recent front-page news stories can involve multi-million dollar frauds managed at the P&L level by suppliers, such as Pfizer’s recent complex overbilling scheme with the NHS. But procurement and payables fraud most often takes place on a smaller level, with varying degrees of sophistication. Oversight Systems provides an analytics managed service (and front-end software) capability for procurement and finance organizations to fight procurement fraud, whether perpetrated by suppliers, internal participants or both. It also provides similar capabilities to monitor for regulatory compliance (e.g., FCPA violations) as well as detect overpayment errors. Its solution is a complement to procure-to-pay (P2P), travel and expense (T&E) and various audit recovery solutions and approaches in the market today.
This third and final installment of this Spend Matters Vendor Snapshot covering Oversight Systems provides an objective SWOT analysis of the provider and offers a competitive segmentation analysis and comparison. It also includes recommended shortlist candidates as alternative vendors to Oversight Systems and provider selection guidance. Finally, it provides summary analysis and recommendations for companies that can best take advantage of Oversight Systems’ capabilities. Part 1 of this series provided an in-depth look at Oversight as a firm and its specific solutions, and Part 2 gave a detailed analysis of solution strengths and weaknesses and a review of the solution’s user experience.
What do you get if you cross P2P payment compliance, procurement and payables fraud detection and management, and a big data solution together? You get Oversight Systems. Unlike other overpayment prevention and recovery audit providers, Oversight decided to pursue what we might best describe as “data science as a service,” hiring data scientists who are experts –– or have become experts –– in spend areas including travel and expense (T&E) and procure-to-pay (P2P), as well as regulations affecting supplier management and payables such as the Foreign Corrupt Practices Act (FCPA). This team continually works to develop new algorithms to confront the types of continuously evolving over-billing and procurement and T&E fraud scenarios that employees, procurement staff and suppliers engage in, either intentionally or as a result of complacency.
This Spend Matters PRO Vendor Snapshot explores Oversight System’s product strengths and weaknesses, providing facts and expert analysis to help procurement organizations decide whether they should consider this class of solution alongside other P2P, T&E, payables/card and related investments. It also offers a critique (pros/cons) of the user interface. Part 1 of our analysis provided a company and detailed solution overview and a recommend fit list of criteria for firms considering it. The third part of this series will offer a SWOT analysis, user selection guide, competitive alternatives, and additional evaluation and selection considerations.
As we have seen in Part 1 and Part 2 of this series, e-invoicing has produced great benefits for governments in terms of tax collection and streamlining its own control processes, for which they have implemented mechanisms that companies must comply with, ranging from the simple to the complex. For both buyers and suppliers, this represents a new technological challenge — especially for companies with operations in multiple Latin American countries.