Supply chain corruption

yemmy_ma

Forum Moderator
Re: Supply chain corruption

What are the best practices to get rid of corruption in Supply chain operation in long run?
I really don't know if the corruption in supply chain is different from what we experience in other aspects of life.

I found an article from a UN organization about fighting corruption in supply chain.

http://www.unglobalcompact.org/docs/issues_doc/Anti-Corruption/Fighting_Corruption_Supply_Chain.pdf

You might get some clues from there.

Yemmy,
 

kayjsharp

Banned
Re: Supply chain corruption

I think most of the corruption in supply chain is in public sector. The government should take steps to avoid any kind of bribery and monitor the companies. Corruption will distort market and will hamper the economic and social growth.
 

alan123

New member
Re: Supply chain corruption

There are few ways such as monitoring the SC by means of technology and try to do maximum SC process with the help of available technology. This will enable you to monitor the information and there can be surprise auditing that can be done, whoever found guilty must be punished.
 

silliker

Banned
Re: Supply chain corruption

Corruption have a number of negative effects on a business and so should be avoided..it has the potential to permanently damage a brand, potentially bankrupting your business and also those of your suppliers and customers!
 

rainbow

New member
Re: Supply chain corruption

Unfortunately, in today's world corruption is present almost everywhere. I have worked for an International Humanitarian Organisation (for supply chain and logistics), and I was shocked to see the type of corruption prevelant there. The policies are only documented but hardly implemented. Private Companies are more strict regarding corruption as per my experience.

In my view, in order to avoid corruption organization need to have strict rules and norms. For corruptuion free supply chain, i think supply chain should be practiced within a cross functional team. For example, the quotation of the product to be analysed by one specialised person, quality of the product by someone else, the factory to be assessed by another person and so on. Every industry should come with their own criterias depending on their requirement.
 

Swapnil

New member
Re: Supply chain corruption

What are the best practices to get rid of corruption in Supply chain operation in long run?
Corruption is one of the grave threat to the any economy, corruption is not only practiced in Logistic and supply chain management but it is omnipresent it is present everywhere, mostly in public sector as Kayjsharp said, and almost every government officer is involved in it, and hence expecting any positive and strict action from government is next to impossible it is us who have to fight back for it and try and stop it, and the journey would surely begin from step 1 i.e, from ourselves, stop self first in supporting corruption and than you can try to stopping others from doing that.
 

Niamh

New member
Re: Supply chain corruption

Corruption is weakening the roots of any business and it must be stopped whether it is public or private sector. People must be continuously monitored and punished for such activities.
 

Swapnil

New member
Re: Supply chain corruption

Corruption is weakening the roots of any business and it must be stopped whether it is public or private sector. People must be continuously monitored and punished for such activities.
Yeah, Correctly said, continuous monitor for such activities should be there and any one found guilty should be severely punished.
 

TopLink

Forum Founder
Staff member
Re: Supply chain corruption

Sadly in some parts of the World it is almost an accepted practice. Like an unoffical tax!
 

HadBanks

New member
Re: Supply chain corruption

Sadly in some parts of the World it is almost an accepted practice. Like an unoffical tax!
I agree. Particularly in the Philippines (it really is such a shame).

Best practices to get rid of corruption in the long run? That's a doozy. It takes more than the business entity itself to root that out. It takes a consolidated effort from the business and the relative police force to really weed it out. Sadly, even the police in some places can be bought now.

I guess bottomline is be careful who you do business with, whether you put them there or you start a contract with them. Research and diligence in checking sources helps. Reviews. Feedback.
 

AtlantaSports

New member
Re: Supply chain corruption

Corruption is weakening the roots of any business and it must be stopped whether it is public or private sector. People must be continuously monitored and punished for such activities.
Probably one of the most true statements on this thread. I feel like the punishment is simply not great enough to stop the corruption.
 

KylerA

New member
Re: Supply chain corruption

That's actually true. Very hard to stop the corruption, and it is true that punishment is not always the right way to prevent corruption. It's very annoying though.
 

Texman

New member
Re: Supply chain corruption

If you want to stop corruption you have to put into place measures that will be applied to close loops that lead to corruption. There should be strong deterrents to taking bribes or granting undue favors.

Once you set a few examples of the corrupt being punished, corruption will start going down.
 

KylerA

New member
Re: Supply chain corruption

If you want to stop corruption you have to put into place measures that will be applied to close loops that lead to corruption. There should be strong deterrents to taking bribes or granting undue favors.

Once you set a few examples of the corrupt being punished, corruption will start going down.
I'm not sure I understand, could you explain?
 

Corzhens

Member
Re: Supply chain corruption

I really don't know what to say because I don't want to smear companies and people. It's not really that prevalent although it's not that rare either, the corruption in storehouses and stock rooms. The opportunity for corruption lies in the inventory and audit, procedures that are undertaken once in a blue moon. And some inventory checkers are not in their best moods so the accuracy of the count is compromised.
 

walter

New member
Re: Supply chain corruption

can be prevented with proper monitoring, from incoming, outgoing, stock inventory, can be done also using multiple warehouse checker
auditors and even unannounced shifting of gatekeepers and CCTV viewer (Hidef CCTV will help)
 

Corzhens

Member
Re: Supply chain corruption

can be prevented with proper monitoring, from incoming, outgoing, stock inventory, can be done also using multiple warehouse checker
auditors and even unannounced shifting of gatekeepers and CCTV viewer (Hidef CCTV will help)
That unannounced shifting of custodians or gatekeepers is not that easy because you might be stepping on the labor law - unfair labor practices. I guess the CCTV is effective in deterring corruption because the staff would think twice. However, it is not foolproof since the staff has a mastery of the surrounding. But I agree to the CCTV for now because we get zero crime rate, so to speak, when we had installed some units in the warehouse.
 

walter

New member
Re: Supply chain corruption

@corzhens,
try installing CCTV in there hard hat, and require them to wear hard hat every time they're inside the warehouse, crazy idea but perhaps effective. CCTV also help in monitoring the warehouse, in my previous company I managed, we install 4 hidden CCTV camera and 4 dummy CCTV ;)
the same goes to exit, entrance and staging area, after a month, we got 100% we also change the security guard

on the issue of shifting, upon hiring those staff, they will have to sign a contract which authorized the employer to shift their schedule as need arises or during peak season to avoid labor complains.
 
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