Fraud Prevention in a Manufacturing Environment

Fraud Prevention in a Manufacturing Environment

Description

Read the following case study and respond according to the instructions at the end. You have been assigned to Walmart’s Fraud Prevention Team. Among your tasks is the review of monthly financial reports and figures. You noticed a red flag at the Pueblo, CO packaging and distribution center. The center receives shipments from around the world, packages them into the necessary quantities for each store in the area, and ships them by trucks to those locations. For several months, the inventory recorded as “packaged” has exceeded the inventory quantities recorded as “shipped.” However, the packaged inventory matches the quantities received from the global suppliers. What steps would you take to identify the source of the shrinkage? What changes would you recommend to prevent this from continuing? What are the most cost-effective methods of improving security at the center? As a corporate “outsider”, how could you effectively engage the entire distribution center’s operations team in theft prevention? 

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