The poll of 2,660 professionals found that the total number who have experienced fraud, waste or abuse in the supply chain over the last 12 months has remained relatively flat for the last two years at around 31 per cent.
However, Deloitte's data does show sector-specific variation which may allude to broader trends. The number of workers in the healthcare and life sciences industry who reported experiences of supply chain fraud, waste or abuse was up from 31 per cent last year to 35 per cent this year. An even bigger jump was registered for workers in energy and resources, for which reports of supply chain issues were up from 27 per cent to 34 per cent.
Deloitte advisory principal Mark Pearson has warned that the upward trend in the energy and resource sector may reflect the growing pressure of deflated energy prices. For those working in procurement, fearing that their job might be in jeopardy 'might be enough' to motivate misbehaviour by those who are 'on the fence ethically', he said.
The poll data also provides insight into which links in the supply chain are the greatest source of risk for companies. The largest group of respondents cited project managers and invoice approvers (26 per cent) as the source of supply chain fraud, waste and abuse, while procurement (24.7 per cent) came in a close second. Accounts payable ranked significantly lower at 10.3 per cent of respondents.
Startlingly, only one fifth of the professionals surveyed by Deloitte said that they felt highly confident that if an employee became aware of supply chain fraud in the next 12 months they would report it. A further 48 per cent said they were 'somewhat' confident that abuse would be reported, while 10 per cent said they had no confidence at all.
Source: Corporate Counsel
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