ABSTRACT
In many smaller organizations the picking and packing functions are performed by the same individual. Ideally the person who picks is not the person who packs, and this separation of responsibilities allows for the packer to audit the picker's performance. Tough economic times tend to drive organizations to reduce head-count by combining functions such as picking and packing; however, this creates more of an opportunity for fraud to be perpetrated. Picking and packing the wrong quantities of an ordered product are not the only types of frauds relevant to these functions. Deliberately picking and packing the wrong product can have devastating effects on the supplier-customer relationship. A client of mine manufactured its own brand of product as well as private-label products for several US retailers. In the pick and pack frauds previously discussed, the fraudster simply perpetrated the crime by relying on poor internal controls to avoid at least immediate discovery.
