Governance, Risk, and Compliance Handbook: Technology, Finance, Environmental, and International Guidance and Best Practices

CHAPTER 38

SUPPLY CHAIN COMPLIANCE

Michael F. Cox

38.1 INTRODUCTION

38.2 SEPARATION OF DUTY

38.3 SELECTION OF SUPPLIERS

38.4 RISK AND BUSINESS CONTINUITY MANAGEMENT

38.5 PAYMENTS

38.6 ITEM AND SUPPLIER SETUP

38.7 CONTRACTS AND PURCHASE ORDERS

38.8 TRACKING AND REPORTING PURCHASE OBLIGATIONS

38.9 ASSURANCE OF SUPPLY

38.10 SUPPLY CHAIN PLANNING AND SCHEDULING

38.11 INVENTORY MANAGEMENT

38.12 PHYSICAL ASSET PROTECTION, INTELLECTUAL PROPERTY, AND CONFIDENTIALITY

38.13 LOGISTICS, TAX, AND TRADE

38.14 ANTICOMPETITIVE BEHAVIOR

38.15 QUALITY REQUIREMENTS FOR THE BUSINESS MANAGEMENT SYSTEM

38.16 SUPPLY CHAIN ENVIRONMENTAL AND SOCIAL RESPONSIBILITY MANAGEMENT

38.17 RECORD KEEPING

38.18 TRAINING

NOTES

38.1 INTRODUCTION

Rather than attempt to provide specific references to hundreds of regulatory and guidance documents, the focus here is on best practices that will help any firm steer clear of ethical and compliance issues. The practices are more appropriate for firms of some size—large enough to be organized and staffed by function. Businesses that will benefit most are those where technical work is separated from administrative work, and divided into functions such as selling, processing orders, procuring goods and services, and so on. Very small owner-operator businesses are likely to be frustrated and daunted by the details, but the overarching business control principles are sound and broadly applicable. All business owners are encouraged to consult with a specialist or lawyer when dealing ...