Case: Supply Chain Risk Mitigation
Client Challenge
A global manufacturing company sought to lower its costs by storing and shipping its products from an off-site warehouse owned by its existing logistics vendor in southeast Asia. The manufacturing company’s supply chain management and procurement organizations developed the scope of work, conducted the contract negotiations, and established a timeline to implement the new services. They engaged corporate security experts to review the agreement.
Corporate security professionals conducted an on-site review of the logistics company’s physical and technical security and business processes. They identified a large number of significant security gaps and vulnerabilities. A review of the contract revealed that most of the financial risk from theft and product loss would be shouldered by the manufacturer. The huge risk disparity was corrected and modifications were made to the contact.
Banyan Solution
Client Impact
Involving corporate security professionals in the risk mitigation process drastically reduced the risk exposure of the manufacturing company. This paid huge dividends later when a manager and employee of the logistics company stole a large amount of inventory from the facility and the logistics company was financially responsible for the illegal activities of their employees.