Information exchange in global logistics chains: An application for model-based auditing

An integrated data pipeline has been proposed to meet requirements for supply chain visibility and control. How can data integration be used for risk assessment, monitoring and control in global supply chains? We argue that concepts from model-based auditing can be used to model the 'ideal' flow of money and goods, and by identifying deficiencies, to determine possible risks concerning safety and regulatory compliance. In particular, we propose to use the 'value-cycle model' for specifying economic transactions, and connect the expected economic status transitions to the physical flow of goods. The usefulness of the model in practice is shown by a case study of a retail trade lane of between China and United Kingdom.