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Solution Brief

Ensure supplier integrity with continuous monitoring

Reduce risk and improve trust with proactive supplier monitoring tools.

Overview

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SAS Payment Integrity for Procurement

The issue

Every organization should know its suppliers. Beyond meeting policy requirements from legal, compliance, procurement and finance, knowing which suppliers you should or should not contract with is key to sound procurement practices. Lacking a fast, effective and consistent way to onboard and monitor suppliers on a routine basis presents a high level of risk. Consider potential disruptions to supply chain and service disruptions, the likelihood of reputational damage, and the ramifications of compliance violations.

Unfortunately, many organizations are vulnerable to risk from fraudulent suppliers or infrequent, sub-optimal practices around supplier integrity. Many are too dependent on manual controls and basic rules-detection software, which can be exploited easily, and they struggle to process the volume of data they face with accuracy.

The challenge

Compliance and oversight

The inability to perform supplier onboarding and due diligence checks quickly and cost-effectively increases the possibility of raising issues for oversight or compliance reviews, which might lead to regulatory fines.

Data Constrained or Mis-Managed Data

Lacking a full, clear view of suppliers due to inconsistent data, siloed data, and other data governance factors.

Financial losses

Falling behind the advancement of technologies in supplier management means increasing the risk of exposure to unscrupulous practices that may lead to fraud, waste, and abuse, as it gets increasingly harder to be fast or accurate in identifying suppliers who are up-charging, bid rigging, or sending duplicate invoices.

Reputational damage

Those who struggle to identify potential compliance or sanctions risks proactively are exposed to regulatory consent and reputational harm.

What if you could monitor your contracting and procurement processes continuously to detect, investigate and mitigate irregular activities proactively?

With SAS Payment Integrity for Procurement, you can:

(Create predictive models; Capitalize on data and AI; Use integrated forensic capabilities; Score risks on transactions; View entity networks in real time)

Our approach

We help you address legal and compliance requirements with a platform that is designed to perform checks automatically at the time of onboarding and periodically afterward.

We deliver software services to help you:

Automate the compliance and integrity risk assessment of suppliers.
Monitor suppliers’ financial positions, such as shareholding structure and ratios that measure liquidity, profitability, etc., so that you can take corrective action quickly if needed.
Regularly Obtain publicly available data changes from third-party reference data providers – financial data, pending legal cases, default data, noncompliance data, etc.
Monitor ongoing compliance and score suppliers based on up-to-date profiles and other information.

Real-world impact

Industry

Result

Public utility company

Discovered excessive multiple invoices and inflated and duplicated payments – costing over US$700 million. And 600 employees were identified as having an active interest in suppliers.

Government institution

Uncovered employee collusion with a large supplier paid over $300 million. Forensic analysis revealed multiple and split invoicing, which continuous monitoring could have prevented, saving more than $16 million.

Energy provider

Identified $500 million paid to suppliers without receiving goods and found 25 ghost employees.

Utility company

Analyzed three years of supplier data and found conflicts of interest in 10% of employees, $300 million in collusive spending and immediate savings of over $16 million in unpaid duplicate invoices.

SAS difference

SAS Payment Integrity for Procurement has been developed to speed time to value, drive down investment costs, boost productivity and improve risk management across the supplier management and procure-to-pay life cycle.

Only SAS offers:

Real-time continuous monitoring

Predefined fraud scenarios combined with data management, proven models and rules can be used to uncover unusual supplier behavior, duplicate invoices and contract discrepancies, ultimate beneficial owners, politically exposed persons, dual usage goods, and more.

Automated process

Analytics helps identify errors rapidly. Machine learning techniques continuously monitor for compliance, fraud and money laundering and ensure you’re notified of any red flags.

Risk scoring

Develop a supplier risk profile using just-in-time risk scores during onboarding, and use ongoing risk-weighted scores to inform AI models, or AI agents that may guide how you manage the supplier relationship to meet the needs of your organization's stakeholders.

Data visualization

You can view data in various ways to get a clearer picture of possible actions. One possibility is to examine heat maps of suppliers to see multiple dimensions of risk or visualize anomalies and the result of sensitivity analysis and customize displays to ensure you are able to get the most out of your supplier relationships.

SAS Payment Integrity for Procurement