Sep 27, 2024
Welcome to a new episode of the Art of Consulting
podcast, where we engage in deep discussions with some of the most
knowledgeable and insightful professionals in the business world.
Today, we are privileged to welcome Ms. Stephanie Forbes back to
the show. Recognized as a national expert in value chain
management, Stephanie brings over two decades of experience
managing multi-billion dollar projects throughout Canada and the
United States. Currently serving as interim vice chair of Supply
Chain Canada, Alberta Institute, Stephanie is frequently sought
after for her expertise and is known for her impact on the industry
through her roles in leading panels, webinars, and podcasts, and as
an international speaker. In this episode, Stephanie enlightens us
on the complex and pressing issue of procurement fraud in the
supply chain space. She shares her wealth of knowledge on the types
of fraud organizations might encounter, the effects of such illegal
acts, and the crucial steps necessary to prevent them. Prepare for
an in-depth look at the importance of governance models, complex
problem-solving, and the nuances of fraud prevention within the
supply chain.
00:13 Introduction:
We introduce Ms. Stephanie Forbes, a value chain expert with
extensive experience in leading significant projects across North
America. Her involvement with Supply Chain Canada and her
reputation as an international speaker set the tone for our
discussion on procurement fraud.
00:56 Stephanie's Vast Experience:
Stephanie's rich background includes the creation of the Supply
Chain Excellence Forum and her work with some of the largest
organizations in North America. Her passion for complex
problem-solving has made her an authoritative voice in the
industry.
01:40 The Issue of Fraud in Supply Chains:
We dive into the significant problem of fraud within supply chains,
particularly its relation to ERP systems, and Stephanie's
encounters with companies that fraudulent activities have
victimized.
02:48 What Is Procurement Fraud?:
Stephanie offers a precise definition of procurement fraud and
discusses its impact on organizations, providing a foundation for
further exploration of the subject.
03:29 Types of Procurement Fraud:
Detailed explanation of various forms of procurement fraud,
including employee collusion, bribery, conflicts of interest, bid
rigging, and product substitution, shedding light on their
intricacies and consequences.
05:29 The Case of Data Manipulation and Fraud:
Stephanie shares a real-life example of data manipulation that led
to a $9 million financial loss, emphasizing the need for stringent
data management and control measures to prevent such fraud.
14:54 The Role of ERP Systems:
The conversation turns to how Enterprise Resource Planning (ERP)
systems can play a crucial role in maintaining compliance data and
acting as a deterrent against fraud.
22:43 Lessons Learned from Fraud Cases:
Stephanie emphasizes the importance of being open about instances
of fraud, sharing lessons learned, and implementing continuous
education and robust auditing processes to mitigate future
risks.
31:58 Importance of Training in Fraud Prevention:
The discussion highlights the significance of training staff,
sharing information on fraud occurrences, and encouraging a culture
of continuous learning to prevent fraudulent activities.
Episode Highlights:
00:13 - Introducing the expertise and contributions of
Stephanie Forbes in the supply chain management sector.
05:29 - Insights into the complex world of procurement fraud and
the real consequences for organizations.
14:54 - Discussing the preventative measures and governance that
can be put in place to combat fraud within companies.
31:58 - The importance of employee education and transparent
communication in preventing and addressing fraud.
About Our Guest:
Stephanie Forbes is a seasoned executive adept in business, risk
management, and supply chain disciplines. She has driven
transformation within teams, projects, and programs in the energy
and construction sectors, leaving a lasting impact. Stephanie is
dedicated to advancing the supply chain profession, creating value
through her speaking engagements, mentorship, and network. Her
achievements include implementing best-in-class programs like full
life cycle governance and supplier life cycle management. With an
eye toward future opportunities, Stephanie is driven to contribute
significantly to her industry and the field of supply chain
management.
Where to
Find Our Guest Online:
LinkedIn - Stephanie Forbes: http://linkedin.com/in/calgaryforbes