Budgeting For the Repercussions of Supply Chain Fraud

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 don’t want this to be your neck either.

Other articles in this series:

An Introduction to Supply Chain Fraud

Supply Chain Fraud and Sarbanes-Oxley

COSO – Sarbanes-Oxley and Supply Chain Fraud

Definition of Supply Chain

Definition of Fraud

Who’s Involved in Supply Chain Fraud?

What Are the Causes of Supply Chain Fraud?

Where Does Supply Chain Fraud Happen?

Assessing the Impacts of Supply Chain Fraud

Methods of Detecting Supply Chain Fraud

Dreaded Shrinkage: Bottomless Pit or Grave?

Importance of Internal Assessments Before SOX Audits

Summarizing Challenges Surrounding Supply Chain Fraud

Guest Author: Norman Katz

Copyright © Katzscan, Inc. – Source: Supply Chain Fraud White Paper

Telephone: 954-942-4141  www.katzscan.com  Since January 1996  www.supplychainfraud.com

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