Currently international supply chains are facing risks concerning faults in compliance, such as altering shipping documentations, fictitious inventory, and inter-company manipulations. In this paper a method to detect and diagnose fault scenarios regarding customs compliance in supply chains is proposed. This method forms part of a general approach called model-based auditing, which is based on a normative meta-model of the movement of money and goods or services. The modeling framework is proposed on compliance monitoring of supply chains with focus on information systems and compliance reporting tools. The innovation lies in the application and mapping of modeling techniques from dynamical systems engineering to business process analysis for audit and supervision purposes. Specifically, the application domain is where money, goods as well as information are transferred between international supply chain partners. A case study of a leading company in electronics manufacturing applying the model is analyzed.

With increasing international trade and growing emphasis on security and efficiency, enhanced information and data-sharing between different stakeholders in global supply chains is required. Currently, data quality is not only problematic for traders, but also for various government agencies that are involved in border control, such as customs authorities, food and health inspection agencies, or border force. We adapt principles from the value cycle modelling in accounting, and show how these principles enabled by ICT can be extended to supply chain management to ensure quality of data reported to customs. We then describe a typical application scenario based on a real but anonymized case, to show that value cycle monitoring can be applied (feasibility), and if applied, what the expected benefits are (usefulness).