Artificial Intelligence driven procurement fraud prevention

Procurement loss and error in the purchasing process costs the UK Government in excess of £22.6 billion per annum, with an estimated £800 billion lost globally in the construction sector alone, according to figures estimated by Grant Thornton LLP.

DMRC Consulting, in conjunction with HS2, is proposing a collaborative software solution to streamline and improve the efficiency of public sector procurement, reducing losses incurred through the likes of loss prevention, error, systematic abuse and corruption. Aiming to maximise transparency and accountability throughout public sector procurement and supply chains.

To combat this, DMRC Consulting are proposing to develop a cross-cutting approach to utilise data analytics software solution to identify instances of fraud and unethical activities within the public sector procurement process. This project's innovative, forward-thinking approach has the benefit to save in excess of £500 million in public funds through the elimination of such errors and loss prevention, ensuring responsible, transparent spending to benefit the wider community directly. Additionally, the project has the potential to save £6.8bn

£11.3bn annually across governments in the UK by reducing the annual cost of fraud and error of 22.6bn, by 30-50%.

Having delivered a similar project for the NHS earlier 2020, DMRC has developed in-depth knowledge, insights, and assets which uniquely positions us to develop and deliver this project. When we applied our methodology, we were able to identify £80m in losses or 15% of total spending, through advanced machine learning (ML) methods using graph analysis and outlier detection methods.

As a result, we envisage this project will make these capabilities available to the open market through a Loss-prevention-as-a-Service offer, bring advanced detection and intervention capabilities to organisations at all levels of the UK manufacturing supply chain.