Our 2017 Annual Fraud Indicator, which assesses the cost of fraud to UK Plc, estimated that the cost of fraud affecting supplies and services was £121 billion a year.
The estimated percentage loss rate (a running average over 20 years) to individual businesses is 4.8% of supplies expenditure. The fraud arises from
Corrupt relationships between buyers and suppliers can also develop.
There are three key steps you can take:
None of this is very costly, and it all of this helps to secure supply chains against fraud and corruption and the related costs.
The majority of staff, partners and suppliers will always be honest, but a minority won’t.
The key thing is to make the former as large as possible and the latter as small as possible – and there are some simple ways to achieve this, which then allow trust to grow.
Business relationships are increasingly complex and suppliers increasingly distant. In this context, securing firms against problems is a requirement not an option.