Is there fraud in your supply chain?     If so, how would you know?
 
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Supply Chain Fraud Examples
 
 
There have been a lot of cases in the news regarding tainted and recalled products.  While the media has not classified these as such, they are all excellent examples of supply chain frauds.  Some of the more notable cases are:
 
Recalled vehicle tires
Tainted pet foods
Tainted toothpaste
Unsafe foods (peanut butter, canned seafood, etc.)
Toys with lead paint
Toys with small parts that are choking hazards
Baby cribs with latch flaw designs
Grout sealer not pulled from shelves despite causing illness & death
Attempts to outsource military night-vision goggle manufacturing
 
The causes of supply chain fraud include and are not limited to:
 
Bribery from suppliers
 
Kickbacks from sales people
 
Revenge against the company by an employee, contractor, customer, competitor, or supplier
 
Financial deception against stock price
 
Corporate cost-cutting to boost stock price, increase executive bonuses, reduce cost-of-goods-sold, increase revenue, etc.




The failure to detect & reduce fraud across the global supply chain is a very big gamble.... and you could lose more than just your shirt!
 

  
 
 
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