Distribution and channel reviews
Leakage found by channel and partner, from schemes and claims to stock, with the controls that stop it recurring.
Forensic reviews of distributors, depots, CFAs, trade schemes, warranty claims and the distribution management system.
Companies spend large sums below the line: trade schemes, discounts, incentives, promotional material and warranty support. These flow through distributors, depots, carrying and forwarding agents and dealers, and much of the data sits in a distribution management system that partners update themselves. Small loopholes, repeated across thousands of transactions, become large losses.
We build fraud scenarios for the channel, then test them on scheme, claim, sales and stock data: claims without matching sales, schemes paid on ineligible invoices, near-expiry or damaged stock resold, warranty claims for repairs never done, and partners linked to employees. Visits to distributors, depots and CFAs verify stock and records, and show how the business really operates.
We also test the distribution management system itself: who can change data, which controls the system enforces and which reports management relies on. Findings come with fixes and a monitoring dashboard, so leakage is caught as it happens.
Trade spends, schemes or warranty claims are rising faster than sales, or stock and claims do not reconcile.
Signs we see most often
- 01Trade spends or scheme payouts are growing faster than sales.
- 02Warranty or service claims are rising without a quality reason.
- 03Stock at depots, CFAs or distributors does not match the records.
- 04Near-expiry or damaged stock appears in the market at full price.
- 05Some partners receive far more incentives or discounts than others.
- 06Employees appear to have interests in distributors or dealers.
Scoped in writing, run by one accountable team.
Every engagement starts with agreed questions, a reporting line and a confidentiality protocol. The steps below are how this service usually runs; we adapt them to your matter.
- 01ScenarioMap fraud and leakage scenarios across schemes, discounts, claims and stock.
- 02AnalyseRun analytics on distribution system, claims and sales data.
- 03VisitVisit distributors, depots and CFAs, verify stock and review records.
- 04TestTest the access and controls of the distribution management system.
- 05QuantifyQuantify leakage by channel and partner.
- 06FixAgree control fixes and set up a monitoring dashboard.
Leakage identified by channel and partner, with the controls that stop it recurring.
- A library of channel fraud scenarios
- Leakage quantified by channel, scheme and partner
- Stock verification and site reports
- A review of distribution management system controls
- A monitoring dashboard and control recommendations
The law and frameworks this work is aligned to
- COSO and ACFE Fraud Risk Management Guide
- COSO Internal Control: Integrated Framework (2013)
- Companies Act, 2013 s.134(5)(e) on internal financial controls
- Prevention of Corruption Act, 1988 s.9 on associated persons
- UCPMP 2024 for pharmaceutical promotional schemes and samples
References show the standard the work is built to. They do not imply accreditation or endorsement by the bodies that publish them.
This is a summary of the service. For a deeper understanding of how it would work for your organisation, please reach out to us.
Talk to a BDI partnerWhere this service meets BDI's technology.
The platforms below record, monitor or act on the work this service produces.
Questions clients ask before we start.
Which businesses is this for?
Any business that sells through distributors, depots, dealers or CFAs, most often consumer goods, consumer durables, pharmaceuticals and manufacturing.
Do partners know you are visiting?
Visits can be announced, as part of an audit under the contract, or unannounced where the contract and the purpose allow. We agree the approach with you.
Does the review cover our own sales team?
Yes. Schemes and claims usually involve both partners and employees, so the review covers approvals and conflicts of interest inside the company as well.