According to Deloitte, Executives Overlook Efficiency from Analytical Tools

Analytical tools can provide users with invaluable information for a variety of purposes. According to a survey by Deloitte Financial Advisory Services LLP, 22 percent of executives with access to these kinds of tools for supply chain information and management do not use the data analytics in any regard. Given the capabilities of these tools, not utilizing the applications necessarily hampers efficient operations.

Out of the 2600 executives that were polled, only 26 percent of them use the data to mitigate and manage the risks from third-parties. Mark Pearson of Deloitte states that using a “forensic mindset” when examining the data could add context to suppliers and transactions. This would make the analytical tools valuable to any organization. These tools are specifically designed for “mitigating the risk of fraud, waste and abuse.”

Failure to utilize such tools can put a company at risk of “significant financial losses,” according to Larry Kivett, a partner of Deloitte. These risks can include everything from waste and abuse of the system to “legal and regulatory investigations, civil and criminal litigation and reputational damage.” It is suggested that if executives paid greater attention to these tools, there would be significant improvements to efficiency within their companies.