Internal fraud drains approximately $4.5 trillion dollars annually from global businesses, according to the Association of Certified Fraud Examiners (ACFE). According to ACFE's latest Report to the Nations, the median internal fraud loss in manufacturing and production companies is $198,000. Although companies can experience pilferage from customers, vendors and other sources, employees account for the highest losses, when taking into account offenses such as fraudulent insurance claims, unauthorized time off and theft of proprietary information. Crimes can be as simple as stealing company supplies or as complex as sophisticated financial statement fraud.
In the News
Thursday, May 26, 2022
One of the basic costs of doing business is insuring your workers against injury on the job. Escalating medical bills and other factors have caused workers' compensation insurance premiums to increase dramatically. Explore options for reducing the cost of coverage with your insurance agents.
Thursday, May 5, 2022
It's no secret that manufacturing can be one of the loudest on-the-job environments. Over time, many workers suffer from hearing loss — and once the damage is done, they're at risk for other work-related injuries. So, it's important for your company to adopt a preventive management program aimed at reducing the exposure workers have to noise.
Tuesday, April 19, 2022
If your company is involved in a product recall, there are certain federal regulations that must be followed. But in addition to complying with the law, a well-handled recall can help ensure customers trust your company and its products in the future As an example of a company that engages in good business practices, Nordstrom has been cited by the Consumer Product Safety Commission (CPSC). In one incident, a customer called Nordstrom to inquire about returning a sweatshirt because her child choked on the zipper pull. The retailer immediately notified all store managers by e-mail to pull the sweatshirts from the floor. A report was quickly filed with the CPSC via the Internet. Nordstrom also promptly announced to consumers the hazard and its offer to exchange the sweatshirt or provide a full refund using a press release, video news release, newspaper advertisements and in-store posters
Tuesday, April 5, 2022
Take a look around. If you've been building up piles of scrap, excess raw materials, obsolete equipment, returned inventory and spare parts, you probably need an investment recovery program.
Tuesday, March 22, 2022
Wage and hour laws can be hard to understand, and there's a large discretionary component in their enforcement. Violations of these laws are common in the manufacturing and distribution sector.
Tuesday, March 8, 2022
For many manufacturers and distributors, employee overtime has become a complicated issue. Some firms pay too much in overtime, while others misclassifying employees as exempt from overtime when they're actually entitled to it under the law. Either way, it can be an expensive mistake.
Wednesday, February 23, 2022
Fatalities and injuries from machines are a high risk in many jobs. They may occur during service and maintenance tasks when workers face exposure to uncontrolled releases of energy after initiating a machine. During the past few decades, fatalities and injuries have been closely analyzed in workplaces with dangerous machinery. In many cases, failure to lock out and tag out machinery or isolation areas was a contributing factor.
Tuesday, February 8, 2022
Success in a manufacturing/distribution business starts with your order-entry system. It's an expensive proposition to say that there's no time to do things right the first time, but there's always time to redo mistakes again.
Thursday, January 27, 2022
You spend a great deal of time and money developing unique ideas, products and services. But the more people who know about your plans, the more you risk losing your secrets. To help protect vital intellectual property assets, it's important to require confidentiality agreements.