Nearly nine out of 10 large businesses are relying on bad supplier data, putting them at major risk of fraud, a survey has found.
HICX Solutions conducted the survey of 100 senior procurement professionals across the largest US and European businesses at the height of the coronavirus crisis, with 89% admitting they were reliant on ‘bad data’ that was responsible for them lacking oversight of their supplier base.
More than 55% agreed that this reliance on bad data greatly amplifies risk for companies during times of crisis, including supply chain risk and the potential for fraud.
Omera Khan, professor of supply chain management at Royal Holloway, University of London, said: “Too few organisations appreciate the costs of supplier data that is incomplete, out of date, and of low quality. If they realised their vulnerabilities in terms of fraud, regulatory compliance, supply chain risk, and degraded purchasing performance, more organisations would invest in better supplier data management and more appropriate systems.”