Companies spend most of their time focusing on how they can make more money. They go after new customers, add new products to their inventory, and try to purchase their supplies for less money. All of those things increase their revenue but they are not the only way to end up with more money at the end of the year. Businesses can also increase their cash flow by reducing employee error and fraud. This can be accomplished with a proper supply chain strategy.
Possible fraudulent activities include changing payment terms, raising credit limits, extending credit to customers who are not worthy, and creating false sales orders. Possible human error includes entering in the wrong data or failing to invoice a customer. Small businesses might notice fraudulent activity or errors immediately, but large companies might not notice if several hundred or even several thousands of dollars are missing because they do so much business on a daily basis.
Fortunately, companies can set up automated systems to check for fraudulent activity and human error. First, companies can use software that checks for any exceptions made to order to cash business rules that are set up in the system. Then, managers are notified in real time whenever changes are discovered. Managers go over reports to determine if the changes were warranted or if they were a part of human error or fraud. Then, they can address the issue at hand and save money in the process.
With this in place, companies do not have to use manual sample testing. This saves them money. In addition, manual sample testing often fails to find all of the issues since the sample sizes used are usually small. On top of that, manual testing is also subject to human error, so some mistakes might be missed on accident. Then, of course, the group doing the testing might be responsible for the issues at hand so they will not bring them to management’s attention.
If you are only monitoring for fraud and human error internally, you are likely missing some issues. The Appterra Order Management Solution actually automates the process for you so you can focus on your business and then get alerts about any issues that arise. This is the best way to stay on top of fraud and fix errors before they cut into your bottom line. If you manage these processes properly, you can increase your revenue and cut down on your losses.