Procurement is, like any other business process, containing loads of data (spend data, negotiation information, supplier databases, ...). They have to use them wisely, if they want to prevent fraud, manage supply risk, improve sourcing costs, achieve organizational efficiency and agility, or rely on them in the decision-making process. Predictive analytics increases their bottom line and creates a competitive advantage. Sourcing costs are 2%-5% lower for companies that take advantage of big data. Combining multiple analytics methods can improve pattern detection and prevent criminal behavior. As cybersecurity becomes a growing concern, high-performance behavioral analytics examination is crucial, in all actions on a network and in real-time, to spot abnormalities that may indicate fraud.
Problems in procurement are broad, from organizational deficiency to human errors. Many companies are unaware, or even worse, of tolerating unnecessary risk. In procurement, 20% – 50% of the time is estimated to be spent on information searching. Databases are not constantly updated and consist of obsolete data. Doing it by hand is time-consuming, inefficient, and practically impossible on a large scale. Imagine having a platform, that alerts you when the prices of raw materials you’re using decrease on a macroeconomic level. It gives you the ability to instantly renegotiate your deal and therefore decrease your sourcing costs. All related compliance needs have to be met by a unified system, with enabled access to review, manage and evaluate risk. The data-driven decision can be taken only with access to real-time data and key fraud, risk, and anomaly parameters.
With the deployment of the RAALS solution, you can achieve the highest level of efficient fraud scheme detection, revenue leakage detection, and a substantial reduction in operating costs and administrative burden. Supplier’s risk can be, for example, improved with help of the OSINT feature. OSINT looks for information from external sources like social media, news, etc. Your supplier’s name can be associated with scandal, natural disaster, or bankruptcy. RAALS will continuously update your supplier’s risk profile accordingly. Consequently, you achieve rapid and effective reaction time. Our innovative solutions are moving the boundaries of standards in analytics and allow real-time information processing. With the RAALS solution, compliance effectiveness can be increased while the cost of compliance is reduced. In addition, our solution enables a coordinated and cross-organizational approach to risk management. Business complexity, along with increased regulatory and market scrutiny, is driving procurement processes to adopt efficient fraud detection solutions.