Oct 5, 2024
Join us in a riveting discussion with Stephanie Forbes, a value chain virtuoso with more than two decades of experience overseeing multi-billion dollar projects. Serving as the interim vice chair of Supply Chain Canada, Alberta Institute, she is frequently sought out for her wealth of knowledge in the supply chain realm. In this episode, Stephanie delves into the complexities of procurement fraud, elucidating its various forms and imparting crucial strategies for preventing such deceptive practices within organizations.
00:13 - Introduction:
Kat introduces Stephanie Forbes, an esteemed value chain expert
renowned for her contributions to the field and her tenure in
steering significant projects throughout Canada and the United
States.
00:56 - Stephanie's Professional Background:
The spotlight is on Stephanie's instrumental role in advancing the
Supply Chain Excellence Forum and her collaboration with prominent
entities like Shell and Chevron, reflecting her dedication to
solving complex issues and building best-in-class governance
models.
01:40 - Navigating the Topic of Fraud:
Today's enlightening conversation ventures into the pressing issue
of fraud within the supply chain ecosystem, with Stephanie
emphasizing the criticality of understanding the different facets
that contribute to vendor-related fraud and illicit cash flow
activities.
02:22 - What is Procurement Fraud?:
Stephanie lays down a clear definition of procurement fraud,
highlighting the element of criminal deception in the procurement
process, which aims for personal or organizational financial
gain.
03:29 - Exploring Various Fraud Types:
We dive deep into the murky waters of procurement fraud, discussing
specifics like employee-contractor collusion and bribery, and how
such practices circumvent fair processes and inflate organizational
costs.
06:53 - The Mechanisms of Bid Rigging:
Stephanie offers a breakdown of bid rigging, conflicts of interest,
and the preventative measures that organizations can implement to
safeguard against such deceptive activities.
08:22 - The Perils of Product Substitution:
The conversation shifts to the significant risks associated with
product substitution, particularly in sensitive sectors like oil
and gas, underscoring the potential dangers and the importance of
rigorous quality assurance.
09:55 - The Role of Quality Control and ERP
Systems:
The episode highlights the vital role of quality control measures
and how ERP systems play an integral part in preserving compliance
data and preventing procurement fraud.
13:05 - The Advantages of a Vertically Integrated
Supply Chain:
Stephanie speaks to the benefits of vertical integration in a
supply chain, detailing how it can enhance predictability and
control, while lowering overall risk.
16:23 - Tales of Fraudulent Activities:
We hear chilling real-world accounts of fraud, including a case
study of an employee's manipulation of ERP data leading to a
significant financial loss for their company.
26:12 - Pinpointing Vulnerabilities and Remedies:
The episode concludes with discussions on identifying weak spots in
corporate processes susceptible to fraud and the measures that can
be taken to train employees on recognizing and preventing these
issues.
About Our Guest Today:
Stephanie Forbes is a seasoned executive with over two decades of
experience in business, risk management, and supply chain,
primarily within the energy and construction sectors. Her
leadership has driven successful transformations in teams,
projects, and programs. She is committed to advancing the supply
chain profession by creating value for stakeholders through
speaking engagements, mentoring, and leveraging her extensive
network. Stephanie’s achievements include implementing
best-in-class programs such as full life cycle governance and
supplier life cycle management. Eager for new opportunities, she is
motivated to make significant contributions to the energy and
construction industries, as well as the field of supply chain
management.
Episode Highlights:
00:13 - Introduction to Stephanie Forbes:
Stephanie is introduced as a highly experienced value chain expert
and interim vice chair of Supply Chain Canada, Alberta
Institute.
00:56 - Stephanie's Influence on the Supply Chain
Industry:
Her work with major North American organizations and contributions
to the Supply Chain Excellence Forum are highlighted.
01:40 - Fraud in the Supply Chain:
The conversation turns to how fraud can impact organizations and
the need for awareness of various fraud types in the procurement
process.
02:22 - Defining Procurement Fraud:
Stephanie provides a definition of procurement fraud, emphasizing
deception in acquiring goods or services.
03:29 - Types of Procurement Fraud:
The discussion delves into different types of procurement fraud,
including employee-contractor collusion, and its consequences.
06:53 - Preventing Bid Rigging and Conflicts of
Interest:
Stephanie discusses how organizations can mitigate the risk of bid
rigging and conflicts of interest within procurement processes.
08:22 - The Dangers of Product Substitution:
The risks associated with product substitution in critical
industries are examined.
09:55 - Quality Control and ERP Systems:
The importance of quality control and the role of ERP systems in
upholding data compliance is explored.
13:05 - The Value of Vertical Integration:
Stephanie speaks on how vertical integration can enhance
predictability and reduce risks within supply chains.
16:23 - Real Cases of Fraud:
A story is shared about an employee manipulating ERP system data to
commit a multi-million-dollar fraud.
26:12 - Preventative Measures and Training:
Strategies for fraud prevention, the importance of process reviews,
and employee education are discussed.
Where to
Find Our Guest Online:
LinkedIn - Stephanie Forbes: http://linkedin.com/in/calgaryforbes