The greatest asset for a company in the retail and consumer company is its reputation. To quote Warren Buffet, "It takes 20 years to build a reputation and five minutes to ruin it." Consumer products manufacturers, retailers, and others along the supply chain are more prone to reputation risk today than ever before. Globalization has created new business models & new challenges; the financial crisis has heightened internal & external company fraud; and growing, complex supply chains have increased the need for monitoring and mitigating risks from source to sale, making supply chain integrity a critical concern for R&C companies today.
Retail and Consumer companies must be particularly vigilant in protecting their brands and reputation from increasing reliance on suppliers and sub-suppliers because of the cost reduction demands on the supply chain which has the consequence of making the supply chain almost a cost center with demands on suppliers to reduce and lower per unit costs. This can result in unapproved substitutions to products, a slacking of quality and possible product recalls. Because R&C companies sell directly to consumers and the trust in their products is important to repeat sales, anything that undermines trust can easily undermine and eroded a company’s reputation.
PwC offers a proven method to align risk appetite with strategic goals, deploy resources more effectively, reduce operational surprises and losses, and improve risk response. We collaborate with R&C companies to: