Complex Supply Chains Present Fraudsters with Multiple Points of Attack
Never underestimate the importance of accounts payable security.
By its nature, the manufacturing industry has always been associated with intricate processes and cutting-edge technology. Whether being the first to embrace the concept of the assembly line or most recently, 3D printing. This spirit of ingenuity is not relegated to the production floor. It’s pervasive throughout manufacturing organizations, with the frequent exception of ensuring Accounts Payable security. You’d think it would stand to reason that manufacturers are eager to seek out the latest AP fraud protection tactics - in an industry that relies heavily on keeping its robust community of suppliers paid efficiently and on time.
Why then, are the back-office processes of many manufacturers still so reliant on manual payment processes? Processes that are unsecured and require time-consuming tasks such as keying data, printing paper checks, seeking approvals, and posting? In fact, checks continue to be one of the most fraud-prone payment methods, with over 75% of organizations experiencing some time of check-related fraud.
How Can Manufacturers Protect Their Suppliers?
One way to combat check fraud is to adopt an automated end-to-end payables process. Payment automation offers accelerated invoice processing, streamlined payments in multiple formats, and auditable workflows. Automation maximizes visibility and control for enhanced security against fraudulent attacks.
But automating payments is just the first step. Manufacturers need to go beyond that initial process improvement to further protect themselves against exposure to payment fraud loss, which can not only damage their reputation with customers but also put important supplier relationships in jeopardy.
For details on how manufacturers can protect themselves against fraud attacks, read the article by risk and fraud prevention expert Chris Gerda, “Manufacturing Accounts Payable Security” on Industry Today.
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