While automated data collection has obvious benefits with regard to inventory control and product tracking, the tools also provide valuable protection against fraud, according to a survey by Deloitte. The increasing complexity and globalization of the supply chain means that keeping track of third-party relationships is more important than ever. However, the survey found that only 26 percent of business executives are using data analytics to help manage connections with suppliers.
More than 22 percent of those surveyed reported using no data analytics at all and 13 percent are still learning how to utilize the information. To be a world-class operation, supply chain managers should speed up their adoption of data collection solutions.
"Many market-leading companies leverage advanced data analytics tools and forensic accounting to identify anomalies in their transactional data," Mark Pearson, principal, Deloitte Financial Advisory Services, said in a press release. "Using a forensic mindset when analyzing big data can provide value to an organization by adding context to suppliers and transactions, potentially adding to increasing profits and mitigating the risk of fraud, waste and abuse."
Fraud Is Just One Risk of a Complex Supply Chain
In addition to financial theft or mismanagement, global organizations can also see their bottom lines take a hit because they fail to comply with new regulations or adopt more viable procedures. A failure to apply to government regulations can even lead to civil and criminal legislation causing an even greater impact on an organization's finances and its brand reputation.
Benefits Extend Beyond The Warehouse, Shop Floor
While companies have different reasons for putting off the adoption of new data collection software, its growing role throughout the enterprise makes it an asset that is increasing in value. While it can streamline processes and procedures in the warehouse, solutions that integrate with existing ERP systems can provide massive amounts of data that can go a long way toward detecting and eliminating fraud, noncompliance and other forms of financial loss.
Supply chain managers who are struggling to obtain new technology for their warehouse or manufacturing facilities should make sure that leaders throughout the company understand the benefits. As big data grows as a tool, most should realize the importance of mobile data collection from the field and across the supply chain.