ERP systems are the backbone of financial and operational processes in organizations. Adding a new supplier is not just a technical step—it is crucial to prevent fraud, errors, and mismanagement that can cause significant harm. Below are five key things to verify before adding a new supplier:

1. Verify the Supplier’s Identity

Ensure the supplier is legitimate and operates lawfully by taking the following steps:

• Request official identification documents, such as a business license, VAT registration, or company certificate.
• Verify supplier details against external databases, such as the Companies Registrar or business information directories.
• Check whether the supplier is listed on blacklists (e.g., international sanction lists).

2. Verify Bank Account Details

The supplier’s bank account is a sensitive piece of information that must be verified for authenticity.

• Request an official bank confirmation detailing the account information.
• Cross-check the supplier’s name with the account holder’s name.
• Use automated bank validation systems where available.
• Be cautious of bank accounts located in high-risk countries for fraud.

3. Cross-Check Data with Internal and External Systems

Ensure the new supplier is not duplicated in the system and has no ties to internal conflicts of interest:

• Check for duplicate supplier records with similar details (e.g., matching addresses or bank accounts).
• Verify that there are no familial or business relationships between the supplier and company employees.
• Use tools to identify potential anomalies.

4. Review the Supplier’s History

If the supplier has worked with other organizations, review their business history:

• Request recommendation letters from previous clients.
• Check the supplier’s credit rating.
• Examine any past complaints or lawsuits against the supplier.

5. Establish a Structured Approval Process

Ensure that the supplier setup process is controlled and transparent:

• Implement a multi-step approval process involving relevant departments (procurement, finance, compliance).
• Maintain complete documentation of all records and approvals.
• Set up alerts for changes in supplier information, such as bank account updates.

How Can Detelix Help?

Detelix is an advanced system for detecting and alerting against fraud, errors, and financial mismanagement in payment and supplier onboarding processes. Our system offers:

• Automated Supplier and Bank Account Verification: Using complex algorithms, we verify suppliers, assess their bank account details, and authenticate documents to ensure they are not forged—all through an automated process.
• Real-Time Monitoring: Receive automated alerts for any changes in supplier details.
• Conflict of Interest Detection: Cross-reference internal data with supplier details to prevent fraud.
• End-to-End Analysis: Leverage over 450 algorithms for every financial transaction to identify errors, fraud, and misconduct throughout the process.
• Supplier Communication: Detelix directly interacts with suppliers to verify and validate their details, assisting treasury teams by streamlining processes and reducing manual intervention.

Example: Detelix in Action

Here is a practical example of how Detelix helps clients prevent third-party fraud:

Clients often face fraudulent bank account change requests from third parties. By using Detelix, organizations:

• Verify document authenticity and validate bank account details.
• Cross-check data against internal and external systems.
• Detect and halt third-party fraud attempts in real time, ensuring secure supplier management.

Contact Us

Want to see how Detelix can transform your supplier management and protect your organization?
Contact us today to schedule a demo or learn more about our solutions.