Security issues with vendors employees and customers
Download
1 / 22

Security Issues with Vendors, Employees, and Customers - PowerPoint PPT Presentation


  • 273 Views
  • Updated On :

Security Issues with Vendors, Employees, and Customers. Chapter 10. Objectives. Describe the different forms of supplier error and dishonesty Illustrate the different forms of employee dishonesty Identify security problems in purchasing, receiving, storing, and issuing. Objectives (cont’d.).

Related searches for Security Issues with Vendors, Employees, and Customers

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Security Issues with Vendors, Employees, and Customers' - zola


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Security issues with vendors employees and customers l.jpg

Security Issues with Vendors,Employees, and Customers

Chapter 10


Objectives l.jpg
Objectives

  • Describe the different forms of supplier error and dishonesty

  • Illustrate the different forms of employee dishonesty

  • Identify security problems in purchasing, receiving, storing, and issuing


Objectives cont d l.jpg
Objectives (cont’d.)

  • Explain behaviors that could indicate employee dishonesty

  • List methods for protecting your customers from being harmed by other guests


Supplier error and dishonesty l.jpg
Supplier Error and Dishonesty

  • Vendor error

    • Unwittingly sending products or invoices that have problems

  • Vendor dishonesty

    • Purposely misleading the buyer by delivering inferior products, shorting deliveries, or billing for undelivered products


Sales scams l.jpg
Sales Scams

  • Sales representatives will contact people outside the buyer’s office

    • Attempt to sell knock-offs or poor quality, high priced items

  • Backdoor selling

    • Bypassing the buyer to go directly to an individual who will use the product


Product substitutions and shortages l.jpg
Product Substitutions and Shortages

  • Mistakes can be made at the warehouse when loading trucks for delivery

    • No intent of deception

  • Seller could knowingly substitute items of lower quality or short deliveries

    • To make an unearned profit


Inventory theft by delivery personnel l.jpg
Inventory Theft by Delivery Personnel

  • Inventory shrinkage

    • Can occur from internal or external staff

    • Can occur with sales or delivery staff stealing from their customers

      • Items can be removed from the delivery after it has been inspected

      • Clean linen can be removed along with the soiled linen and resold to other customers


Employee error and dishonesty l.jpg
Employee Error and Dishonesty

  • Handling food and alcohol requires a high standard of ethics

  • Dishonest employees have more opportunities than suppliers to abuse an employer’s trust

    • Because they have more access to the product


Security problems in purchasing l.jpg
Security Problems in Purchasing

  • Methods to protect from purchasing fraud

    • Separate the functions of buyer and bookkeeper, and buyer and receiving clerk

    • All emergency purchases must be approved by owner or chef

    • Require receipts and document all cash paid out


Security problems in purchasing cont d l.jpg
Security Problems in Purchasing (cont’d.)

  • Methods to protect from purchasing fraud (cont’d.)

    • Invoices must be marked “paid”

    • Owner should periodically verify existence of all companies who receive payments

    • No payments to P.O. boxes

    • Employ an accounting firm to audit books


Security problems in purchasing cont d11 l.jpg
Security Problems in Purchasing (cont’d.)

  • Methods to protect from purchasing fraud (cont’d.)

    • Use locks and security cameras

    • Give receiving clerk time and authority to do their job

    • Employee parking distanced from entrance

    • Manager should be present when trash is removed from the building


Security problems in purchasing cont d12 l.jpg
Security Problems in Purchasing (cont’d.)

  • Types of fraudulent invoices

    • Padding invoices with charges for products that were never shipped

    • Conspiracy with bookkeeper to pay fraudulent invoices and split the payments

    • Paying invoices from fictitious companies

  • Reciprocity agreements can be difficult to manage


Security problems in receiving l.jpg
Security Problems in Receiving

  • Receiving clerks must perform duties faithfully, even with trusted purveyors

  • Inventory substitutions

    • Seller may bribe receiving clerk to accept lower quality items than were ordered

  • Kickbacks

    • Seller offers payments in some form to influence purchasing decisions


Security problems in storing l.jpg
Security Problems in Storing

  • Access to inventory must be limited

    • Proper locking system on access doors

  • Items that are formally counted and methodically recorded tend to be measured more accurately

  • Stock may be stolen by employees

    • Best deterrent: vigilant management


Security problems in storing cont d l.jpg
Security Problems in Storing (cont’d.)

  • Other deterrents to employee theft

    • Conduct unannounced inventories

    • Inform employees during training that procedures are in place to detect theft

    • Use electronic locking systems and security cameras


Security problems in storing cont d16 l.jpg
Security Problems in Storing (cont’d.)

  • Inventory value padding

    • Overstating value of items held in inventory

    • May be done to “earn” a bonus or to keep a job

    • Another method is to substitute lower priced products and remove the higher priced products and sell for a profit


Security problems in issuing l.jpg
Security Problems in Issuing

  • Chef might order supplies using normal requisitioning system only to have some expensive items diverted by issuing clerk

  • Station-chefs should check-in their received storeroom supplies, comparing their requests with deliveries


Preventing tampering l.jpg
Preventing Tampering

  • Tampering or altering a product to make it dangerous for consumption is a potential threat to the industry

    • Accidental food contamination (E. coli)

  • Methods to maintain safe food supply

    • Know suppliers and make sure employees purchase only from approved suppliers


Preventing tampering cont d l.jpg
Preventing Tampering (cont’d.)

  • Methods to maintain safe food supply (cont’d.)

    • Inspect cases for signs of tampering

    • Control access to kitchen and food storage areas

    • Keep exterior of building and storerooms well-lit

    • Clean and check the ventilation system


Preventing tampering cont d20 l.jpg
Preventing Tampering (cont’d.)

  • Methods to maintain safe food supply (cont’d.)

    • Keep fresh foods covered

    • Keep chemicals in their own locked storage areas

    • Monitor any self-serve areas; remove and dispose of any suspect items


Summary l.jpg
Summary

  • There are many ways a company can lose money through mistakes and outright dishonest y

    • Dishonest sellers

    • Dishonest employees

  • Backdoor selling involves going around the buyer


Summary cont d l.jpg
Summary (cont’d.)

  • Theft can occur in purchasing, receiving, storage, or issuing

    • There are many methods to deter theft

  • Tampering with food is an industry threat

    • Many practices should be followed to prevent tampering


ad