EARLY WARNING
All About Procurement
Fraud – Part 4
By Nikki Viljoen – Viljoen Consulting February
2013.
Last time we looked at some of the different types of issues that
need to be looked at around procurement.
Today we will have a look at some more.
As we said one of the ways to limit procurement fraud is to ensure
that you have a proper procurement policy in place and that it is adhered to
and checked on a regular basis. We looked at the Needs Analysis, Timing and
Suppliers. Then we looked at Supplier Communication and Negotiation. Other issues
that need to be taken into account when implementing the procurement process
are (but not limited to):
1.
Supplier Liaison
Of course it is important for the supplier to perform and at this
point in the process that is exactly what needs to be done. It makes sense therefore to have some sort of
scorecard in place around the performance of the supplier. By now there should have been at least one or
two deliveries and re-orders and the whole experience needs to be
evaluated. Should the supplier have not
met your basic requirements, then it is obviously time for you to consider
alternative suppliers and/or options.
2.
Logistics Management
Whilst we all have expectations around our
suppliers and their delivery of our goods, it is incumbent upon us to ensure
that we manage the whole process. Issues around (but not limited to) shipment,
delivery and payment need to be monitored closely and of course the terms and
conditions of the contract must be met at all times.
There may instances where ‘installation’ needs to take place and
then training needs to be effected.
Clearly this would also need to be monitored carefully as well.
3.
Tender Notifications
Should your company be large enough to
require and/or need tenders to go out to meet your procurement requirements
then obviously this would necessitate a whole different workflow. There are software systems that can be
utilized or you can also outsource these requirements. Obviously you can also keep this ‘in-house’
but I would suggest that careful consideration be taken into how the whole process should work and of
course a lot of research would need to be undertaken in order for this to be as
painless as possible.
Be sure to document the process so that there
are clear lines of what the requirements are and make sure that each step is
monitored carefully.
Next time we will have a look at a few more steps that need to
address in your procurement process.
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