[Editor’s Note: Ardent Partners recently published its Procurement-themed report, “Procurement 2024: BIG Trends and Predictions.” Over the next few weeks, this site will feature articles highlighting the key discussion points from the report.
Chief Procurement Officers and their teams head into 2024 with a continued lack of clarity and a need for caution. While a recession was avoided last year and inflation slowed its pace in most regions, economic and overall market uncertainty remains. In addition, geopolitical unrest in the Middle East and climate conditions in Central America are causing big delays and increased costs in global shipping, forcing many procurement teams to seek alternative sources of supply. While the details fluctuate year to year, procurement’s headline remains the same. In 2024, CPOs face a series of new challenges that must be managed while operating with high uncertainty … AND great opportunities exist for the teams who are best prepared for them.
Over the next few weeks, we’ll feature the BIG trends in procurement followed by equally BIG predictions for 2024 that will help CPOs and procurement professionals understand the key issues at hand and better prepare them for the year ahead.
Prediction #7 – P2P Teams Invest Aggressively in Fraud Prevention Technology
The global pandemic emboldened fraudsters at a frightening pace and Ardent Partners’ 2023 research showed that fraud attempts targeting the procure-to-pay process (and invoicing and payments specifically) hit an all-time high. Fraud has become a serious, lasting threat. The current risk landscape demands a proactive stance against sophisticated fraud tactics. As a result, P2P teams will be leading the charge in greater numbers to combat fraud with new technology investments in 2024 and beyond. The entire P2P journey, from procurement to payment, is susceptible to various forms of fraudulent activities, including invoice manipulation, fictitious vendor schemes, and unauthorized access to payment channels.
Investing in robust fraud prevention technology helps safeguard against financial losses while helping to maintain the integrity of the entire P2P ecosystem. Implementing advanced technologies, such as machine learning algorithms and anomaly detection systems, helps detect irregularities and patterns indicative of fraudulent activities in real time that would not be identified by manual inspection.
Beyond avoiding financial losses, successful fraud prevention builds trust with suppliers, enhances regulatory compliance, and safeguards the reputation of the organization. The investment in cutting-edge fraud prevention technology is a critical component of a robust risk management strategy, as it strengthens the resilience and credibility of P2P processes in the face of a rising tide of fraudulent threats. It should also be noted that a move to P2P automation can be a significant deterrent to fraud as it greatly increases the control over the order, invoice, and payment processes.
