• Business

  Sales and manufacture

  Company X has operated the multi-breed small quantity production fit in with the customer's short term delivery requirements. The prospective production has incidentally produced the dead stock item invariably.
  The sales manager had to double as the quality manager as is often the case with the small company.

• Fraud

  The sales manager had been forced to augment the bottom line. He fudged a dead stock item to a standard item with disguising the label on the item package by the outsourcing warehouse under his control. The quality assurance has been issued under the title of the quality manager.The sales had been booked the dead item and the standard item. The invoice has been issued the standard item to the customer.

• Uncover

  The Lente uncovered the conflict figures between the sales, inventory and quality reports by its cross-checking method and fact-finding survey to the warehouse.

• cause

  This unfortunate fraud can be done by the triple conditions.
  ①The quality section had not been shared with the sales section.
  ②The quality assurance report could be issued by the sales manager without any investigation.
  ③ The sales manager had shrugged off the damage which must have been neglected to the customer's process. His idea had been proved to be specter later.

• Antidote

  The company X had taken the measures.
  ①The quality section had been shared with the maintenance section.
  ②The quality assurance report could be issued by the quality assurance staff with the manager's approval.
  ③The quality report has to be checked periodically with the quality analysis record which must be registered to the file.

  The measures are effective as a preventive medicine. The Lente had encouraged young stuff and middle management in order to root out this fraud. They revealed that the substantial cause has been the dead inventory brought by the customer's short term delivery request.
  They proposed the renovation scheme to the management.
  ①The sales section must come up with the quality integration to the customer. The production section must convert the prospective production system to cope with the customer's request.
  ②The stream line from accepting order to the shipment must be standardized.

• Prosperity

  The fraud itself was unfortunate. But the company X has regarded this fraud as the good opportunity for their business renovation.Their improvement has been progressed to the customer satisfaction and the in-house communication.

This case is an isolated case of any client, irrelevant to any company to which the Lente member have been belonged. This case is compiled from the consultant expertise and public press coverage.

• Business

  Sales

  The merchandise of the Company Y is the special tools and instruments. The head office has organized the flag shop and its branch shops in each districts.
  The flag shop stocks the goods in its warehouse and distributes to the customer (retailer) by the branch shop order.

• Fraud

  A senior staff in the flag shop has been assigned to stock from the supplier V company for the long term. He has padded the bill in exchange for the inordinate purchase volume with additional service charges. The purchase steps, order-receipt-inventory check, were controlled by himself, nobody has been got involved in the steps.
  The order sheet has not been issued to the supplier V company.

• Uncover

  The Lente investigated the legal status for the anti-monopoly law in Japan. The Lente noticed no evidence of the order by which revealed the senior staff fraud.

• cause

  The condition①② have enabled the long term fraud.
  ①The purchase steps has not been controlled by other staff involvement.
  ②The supplier has been limited to one company .Alternative supply source has not been adopted.
  Bedsides the fraud, violating the law is the critical problem.

• Antidote

  The huddle between the administrator in the head office and the general sales representative in the flag shop set the ①②③ rules in the employee handbook.
  ①Other staff must be involved in the purchase receipt and inventory check steps.
  ②Long term dealing with one supplier must be checked by the price inquiries to the other suppliers.
  ③The administrator in the head office must check the legal liability of the flag shops and retail shops regularly.

  The rules are effective as a preventive medicine. The Lente had emphasized the stuff legal-consciousness in order to root out this kind of fraud.
  practice　The procedures have to be efficient and simplified.
  A purchase procedure has to be summarized to the flow chart which applied to all the shops as the company standard.
  The requirements by the anti-monopoly law have been built-in the flow chart in the handbook which has been confirmed by the front line employee.

• Prosperity

  The company which has frequently reassigned employees has been vulnerable to the purchase fraud.
  The handbook procedure for the legal liability has been effective for fostering the front line employee teamwork.

This case is an isolated case of any client, irrelevant to any company to which the Lente member have been belonged. This case is compiled from the consultant expertise and public press coverage.

• Business

  Manufacture

  Company Z was founded in the country C ten years ago its 100% equity by the Japanese company. Its business has been the component assembly work.
  The parent company has applied its information security control guideline to the company Z. The core technology for the research & development and production have been defended by means of its black box control.
  The company Z has been operated by the country C local managers under the control of the president and account director dispatched from the parent company.

• Fraud

  A violation from the guideline

  The guideline has not been observed by the employee.

  Information handling
  communication by the personal cell phone.
  Unregistered information gadget to the company such as PC,USB,HDD for their job use.
  Break-in to the off limit area
  by the outsider (maintenance,delivery,transportation)
  by the non-registered employee
  access to the confidential file
  The circulation to the unpermitted employee
  The leak out of the confidential missed to the registration file

• Uncover

  The Lente uncovered the technology information leak out to other company. The access record to the confidential file was screened the suspicious person who had mailed repeatedly to other company. The gadget USB was prohibited to bring in to the premise. His USB revealed the critical confidential information.

• Antidote

  The information security guideline was customized to the company Z rule. The instruction session was taken place to all the employee. All the employee must pledge to keep the rules with signature. Senior staff must submit the confidential contract on board, promotion and resignation.
  The outsiders must submit the confidential pledge note or the contract according to its assignment under the local law firm guidance.
  The inspection team was assigned. The team would investigate the information security on a regular basis.

• Prosperity

  In the local information security, its rules have been acclimated to the local employee discipline. Among the employees, the confidential-consciousness is here to stay.

This case is an isolated case of any client, irrelevant to any company to which the Lente member have been belonged. This case is compiled from the consultant expertise and public press coverage.