ARE YOU BUDGETED FOR FRAUD REPERCUSSIONS?
If your organization is not budgeting for fraud detection, prevention, and reduction, then you better be budgeting for fraud repercussions. In much the same way as supply chain fraud cuts across the operations of the enterprise, the repercussions from supply chain fraud are just as far-reaching, (if not actually more so), and much more damaging and costly:
– Manufacturing Downtime
– Machinery Flush / Clean / Repair
– Sourcing Replacement Suppliers
– Customer Credits (Distributor, Wholesaler, Retailer)
– Consumer Lawsuits (from injury or death)
– Delayed New Products To Market
– Delayed Advertising Campaigns
– Damage-Control Advertising Costs
– Vendor Compliance Chargebacks
– Product Recall Costs (shipping, handling, destruction)
– Loss Of Brand Trust
– Loss Of Market Share To Competition
– Regulatory Investigations & Audits (costs & disruptions)
The ramifications and costs of supply chain fraud can leave your organization left hanging for dear life.
You donâ€™t want this to be your neck either.
Other articles in this series:
Guest Author: Norman Katz
Copyright Â© Katzscan, Inc. â€“ Source: Supply Chain Fraud White Paper
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