October 19, 2005

China Supply Chain Risks and Due Diligence

Costs of An Unethical Supply Chain

Recently Peter Humphrey from ChinaWhys, an international business risk advisory firm in China, gave an excellent speech in Shanghai about the costs of an unethical supply chain in China.

As the global supply chain undergoes a quantum shift, with multinational corporations relocating their supply base to Asia and increasingly to China, with global sourcing operations centering on this region, the risks and challenges can sometimes be as great as – and sometimes greater than – the rewards and profits. Peter’s presentation included detailed case studies and explanations of the following:

Unintentionally Nurturing a supply chain competitor
Sourcing kickback scams – suggest the need to eliminate middlemen
Purchasing fraud Kickbacks
Common factors that make your vulnerable
Some risk mitigation tools
Due diligence process – investigative due diligence
Supply chain due diligence
Employee integrity & ethics controls
Vendor integrity programs
Corporate security IT security
Contingency planning
Staff & management training Investigations
Keys to reduce risks & losses

You can obtain a copy of his presentation by contacting them. Their website is listed below. You can also email me and I can send you a copy.


	ChinaWhys
	An International Business Risk Advisory Firm with Eyes in China
	http://www.chinawhys.com/aboutus.htm

	Counterfeiting and Supply Chain Management in China
	Supply Chain Strategies for Dealing with Counterfeit Suppliers
	http://supplychain.establishinc.com/public/item/105092