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CASE STUDY ON SUPPLIER ETHICS Alex has been the purchasing manager for Rocket Industries for cades. He is tough but fair. Roc
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Supplier Ethics

Supplier code of conduct has been created to ensure or rather established a complete smooth process in terms of Purchase , Supply chain . Ethical purchase includes :

Ethical trading , Ethical Audit , Ethical business practice, presently Corporate Social Responsibility, assurance about business

In the present scenario , Alex is very tough as well as fair person and recently awarded for tight ship and maintain consistency Standard Purchasing Practice . Looks like Alex is following perfect Supplier Ethics .

In this case , we notice that Engine company continuously doing Under billing amount to $ 14 Mio , which is really dangerous. I believe this matter need detail investigation and Alex as Purchasing Manage needs to highlight to CFO with immediate effect . Alex needs to highlight that present revenue is under by $ 14 Mio and After adding the same , current revenue would be $ 85 + $ 14 Mio = $ 99 Mio , which is quite good number and revenue growth would be $ 3Mio+ $ 14 Mio = $ 17 Mio.

Alex as a purchase Manager and as per Prudent business policy , Process , to maintain high Ethical standard , Alex needs to highlight this case to CFO and do further investigate this matter.

Alex on the basis of Auditors report , schedule meeting with Booster Engine . If require Alex schedule meeting with Booster procurement team , Sales team as well as Finance team . Alex needs to find out the reason for Under Billing . I presume Booster Engine must be a good customer and they must have written Agreement with Rocket Industries. Booster Company respective team member must follow listing Agreement pricing and they should bill accordingly . Alex should touch base with Rocket company respective team member in this matter . This incident is not ONE OFF item . last 6 Months company is not disclosing correct revenue , which have a significant impact on Financial, Tax purpose .

Auditor definitely provide and highlight this matter with Company CFO . Always this type of incident disturb material number  of the company , Auditor do more risk base transaction audit . This type of Incident always welcome some system loopholes .

Definitely Corporate Earnings will impact above matter financial way . Already explained above about revenue impact after considering above material under billing amount .

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