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| Is there fraud in your supply chain? If so, how would you know? |
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Supply Chain Fraud Repercussions
If you're not budgeting for fraud detection & reduction in your supply chain, then you'd better be budgeting for damage-control and recovery costs. The repercussions and ramifications of supply chain frauds include:
þ
Manufacturing Downtime
þ Machinery Flush / Clean / Repair
þ
Sourcing
Replacement Suppliers
þ
Customer
Credits
þ
Consumer
Lawsuits
þ
Delayed New
Products To Market
þ
Delayed
(Pre-Paid) Advertising Campaigns
þ
Damage-Control
Advertising Costs
þ
Vendor Compliance
Chargebacks
þ
Product Recall
Costs þ Product Rework / Destruction Costs
þ
Loss Of Brand Trust
þ
Loss Of Market
Share To Competition
þ
Regulatory
Investigations & Audits
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![]() The repercussions of supply chain fraud can result in a complete shutdown of business operations. |
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