How will Sarbanes-Oxley affect your Supply Chain Management Organization?

In July 2002, Congress passed the Sarbanes-Oxley Act to address the misrepresentation of financial information by public companies and to revitalize corporate governance. While the Act specifically affects a company's Finance and Accounting departments, internal controls and procedures will be required across the enterprise including the Supply Chain Management (SCM) organization.

Section 404 of Sarbanes-Oxley mandates that management must file an internal control report along with its annual report. The report will outline how management has established internal controls over financial reporting as well as an assessment on the effectiveness of such controls.

So how is your SCM organization addressing the requirements of Sarbanes-Oxley?

1. Do you have your policies and procedures documented and do you have a mechanism to ensure that all employees certify that they have read and understand them?

2. And have such policies and procedures been prepared for all phases of supply chain management?

   • Planning and production forecasting

   • Sourcing

   • Purchasing

   • Asset & Inventory Management

   • Logistics and Transportation

3. Do you have a well-established internal control system for asset management, particularly for the identification and disposal of surplus and/or obsolete inventory and equipment?

4. Have you established a formal contracts management strategy?

Resources Connection Supply Chain Management Practice (Resources SCM Practice) is a leading professional services provider of supply chain management solutions. The company offers one primary solution: highly-trained, experienced and motivated supply-chain management professionals with various backgrounds and skill-sets who are available on a project basis. Resources SCM Practice can bring project based supply chain management professionals with the expertise to assist you and your team address the ramifications of Sarbanes-Oxley on your department and corporation.

As a wholly-owned subsidiary of Resources Connection Inc., ("RECN"),Resources SCM Practice has the ability to leverage a global infrastructure that includes over 60 offices worldwide. In summary, we help companies achieve their supply chain management objectives by providing skilled professionals and customized solutions.