Streamlining Compliance and Risk Management in the Shipping and Logistics Industry

In the bustling port city of Dubai, a multinational logistics company specializing in cargo logistics, port terminal operations, and free trade zones was making waves. Established in 2005 through a strategic merger, the company had grown into a behemoth, handling 70 million containers brought in by approximately 70,000 vessels annually. Initially a global port operator, its post-2016 era saw a strategic shift, marked by acquiring various entities up and down the value chain, further expanding its vast footprint in the shipping and logistics industry. 

The Challenge

As 2020 dawned, the company faced a daunting task. They were to integrate 160 disparate on-prem systems spread across the globe into a unified global suite on the cloud. This was a challenge for a company with 53,000 employees, operating 128 logistics businesses, including 90 shipping terminals worldwide. A key concern for the IT team was the massive user base accessing the Oracle Fusion applications. Constant hiring and transfers compounded the challenge of user role provisioning and maintaining Segregation of Duties (SoD) compliance. Additionally, the high volume of payment-related transactions required meticulous analysis to detect any activity above the risk threshold.

To address these challenges and continuously monitor user access while detecting financial fraud in business process applications, the company sought to implement a robust automated internal controls framework.

The Solution

The company partnered with TRP Global, known for its proficiency in risk management, to resolve these business challenges and achieve its objectives. TRPGLOBAL's certified Oracle consultants, with extensive experience in the manufacturing domain, spearheaded the project with a key focus on security. The solutions included:

• Implementation of Oracle Risk Management Cloud to automate the monitoring of user access and tracking of transactions and configurations within Oracle ERP and SCM cloud.
• Deployment of Oracle Advanced Access Controls (AAC) and Oracle Advanced Financial Controls (AFC) within the Oracle Risk Management Cloud, enabling continuous monitoring of user access and transactions with high fraud risk factors.
• Customization of financial controls to meet the company's specific business requirements, alongside pre-built controls within the AAC and AFC frameworks.

Business Benefits

The implementation yielded significant benefits:

• Enhanced enterprise-wide visibility of SoD violations, leading to improved internal controls.
• Streamlined reporting processes and a unified dashboard for Business Process Owners, Compliance & IT teams, and Internal Audit, facilitating better coordination and oversight.
• The availability of an automated workflow for remediation activity post-incident generation, leads to faster resolution of SoD issues.
• The advanced system significantly reduced manual errors and leveraged AI-driven analysis to ensure policy compliance and data integrity.

Conclusion

This case study illustrates the transformative impact of advanced technology and strategic partnerships in the shipping and logistics industry. By implementing an automated, robust internal control framework, the company not only streamlined its compliance processes but also fortified its position as a leader in the global logistics arena. The journey underscores the importance of continuous innovation, strategic planning, and adopting cutting-edge solutions to stay ahead in an increasingly complex and competitive business environment​​​​.