Identify collusion with Vendor during contract award using pattern analysis
The Client – The client is a well-known infrastructure company headquartered in New Delhi.
The Scope – The company awards about 1000 contracts a month across all business units. They wanted to identify suspicious transactions so that in-depth investigation can be done for about 5% of all transactions.
The Solution –
Our analysis included
- Detection of related-party transactions and conflict of interest during Contract award
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Detection of information leakage during Contract award process by looking at bidding pattern
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Identification of split contracts and purchase orders (Multiple orders to a Vendor within a short period of time)
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Contract awarded to Vendors with past quality issues (in another location or unit)
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Identification of suspicious transactions through a group of indicators. For e.g : Big order awarded to small Vendor
The Outcome –
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Early Identification of potential fraud of significant value using data analytics (Use to take 1.5 years instead of weeks)
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Proactive investigation of suspicious cases instead of re-active investigation
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