This large pharmaceutical organization undertook a major project to outsource their logistics. Their objectives for this project were cost savings and minimization of resources. However, the project ended with disastrous results and cost the organization much pain. Not only did they lose profits but the negative effect on customers and staff was significant. The organization’s President called us in to conduct a project audit to learn from their mistakes and make sure that a similar situation would never happen again. During our project audit we discovered that there was no risk assessment or contingency plan to deal with possible risks. As a result, when problems occurred, the project team behaved reactively rather than proactively and this led to more mistakes and problems. Our project audit report included many recommendations to help avert future problems and our client was able to successfully sue the logistics company for damages.