The use of contract manufacturing organisations (CMOs) is common in modern manufacturing. Whilst CMOs present opportunities in terms of cost control and allow organisations to focus on core business, they also present a number of risks – particularly when the outsourced CMO contract is actually with a show factory. Show and shadow factories work in tandem, with shadow factories keeping ‘below the radar’ to undertake production in often unsafe workplace conditions which can also compromise Intellectual Property security and product integrity. Fortunately, the presence of show and shadow factories in your supply chain can be detected using data analytics methods – if you know what to look for. This article explains the concept of show and shadow factories, highlights the inherent risks, and provides a list of indicators which can be used to detect this fraudulent activity. Continue reading →