Supply chain risk management : (redefining the audit function within a large industrial company)

Abstract

As supply chains become more sophisticated, difficulties with their operation can become more complex as well. An organization must ensure the flow of goods and services end- to-end across the supply chain at the promised level and at the anticipated cost. This thesis describes the redesign and centralization of the supply chain operating model of a large industrial company, and suggests a structure capable of mitigating supply chain risk subsequent to the change. The appropriate organizational framework suggested for ensuring an uninterrupted flow of goods and services through the supply chain is the company's internal audit department. A redefinition of the audit department is explored, with the transformation of the audit role suggested to take the form of a process design centered on the Supply Chain Operations Reference (SCOR) model of Plan, Source, Make and Deliver.