* Define Internal Controls: Internal controls are essential in ensuring that all supply chain activities are conducted as per the established policies and procedures.
* Create Documentation: Effective internal controls include thorough documentation of all processes, ensuring traceability and accountability.
* Implement Monitoring Mechanisms: Regular monitoring and audits of the supply chain activities are part of effective internal controls. This helps in identifying discrepancies and taking corrective actions.
* Enhance Transparency: By having effective internal controls, the supply chain becomes more transparent, making it easier to conduct audits and ensure compliance with regulatory requirements.
References:
* Institute of Internal Auditors (IIA): "Standards for Internal Control in the Federal Government"
* APICS: "Supply Chain Management: A Comprehensive Guide"