Steps to Track Brands to Avoid Supply Chain Fraud

According to analysts, half of the companies fail to identify all their suppliers and associates, which represent high risks of corruption and fraud practices. Forty-seven percent of companies around the world lack a formal process to identify third-party intermediaries or high-risk associates or even do not know if they have them, according to KPMG.

Stepsupply Chain Fraud

Data from the consultancy refer that brands do not have to wait for incidents to occur in order to seek information. Make decisions that add value to the business and its ecosystems, so it is advisable to establish a comprehensive fraud prevention or corruption program.

Identify third parties when a company grows, it also increases the number of suppliers in its supply chain, causing their records to be lost. Therefore, that valuable information about them is lost, as if they are risky or reliable. Evaluate potential risks. This is an in-depth analysis that will help determine the kind of potential hazards or benefits that providers can obtain. For this, the company must have a department that deeply analyzes each supplier with monitoring and review of attributes or risks.

Conduct due diligence of integrity. A due diligence aims to gather and analyze the public and private information of the companies, and the people to whom they have to follow up. It is fiscal, financial and banking information news or promotions as well as other kinds of reports audits, as well as detailed information that maintain the updated profiles of the suppliers.

Evaluate constantly. It is that brands have to create a third party risk management program and operational improvements, as well as monitoring the implementation, from the best practices of each supplier. Branding is the most important for a product if the branding is done properly it will be best for the product.