STIl-Audit report
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The document summarizes the results of a business process audit of a company's stores management. The audit found issues including a lack of clear labeling and organization of products, sizes, raw materials and finished goods in the warehouses. Damaged items were also mixed in with finished products. The audit recommends resolutions like adding clear labels, separating items by type and size, and designating areas for raw materials, finished goods and damaged items to improve inventory tracking and management.
STIl-Audit report
- 1. 息 2013 Grant Thornton Consulting Limited, Uganda | Business Process Audit | 30/10/2013 Stores management Covenant issues Impact/observation Resolution/action required Main head section missing to identify product Sizes section not permanently labelled for easy identification and to avoid frequent changes therein Main Head section to be placed for each products in finished goods section for easy identification Sizes labelling in each section compulsory for minimizing frequent changes No labels of the item types, their sizes and their measurements along could be seen Similar type of items should be placed together Labelling is critical to avoid wrong delivery of sizes or measurements for a product WH 1, 2, 3 & 4 54
- 2. 息 2013 Grant Thornton Consulting Limited, Uganda | Business Process Audit | 30/10/2013 Stores management Covenant issues Impact/observation Resolution/action required Damaged items are kept with finished or semi finished products Damaged items considered for scrap or reuse or re production should be stated and classified Finished goods produced are damaged due to non- identified rack and new produced items are stacked above the previous produced items Such damaged items are a huge loss to company and therefore needs to be avoided for better stock management WH 1, 2, 3 & 4 55
- 3. 息 2013 Grant Thornton Consulting Limited, Uganda | Business Process Audit | 30/10/2013 Stores management Covenant issues Impact/observation Resolution/action required Raw materials section not tagged No arrangement and alignment of goods in order Similar items at different warehouse locations is a serious issue for accuracy of goods identifying the goods issued for production Rolls are open and in damaged which may or may not be recorded in SAP (damaged or WIP) which again shall not give a true and fair view of actual raw mateirals Tagging section as raw material/finished goods is critical and important At one location all the materials should be arranged and stacked in LIFO or FIFO basis If possible STIL should segregate duties of raw- material keeper also monitoring for damaged or goods in production (WIP) status and duties of finished WH 1, 2, 3 & 4 56
- 4. 息 2013 Grant Thornton Consulting Limited, Uganda | Business Process Audit | 30/10/2013 Stores management Covenant issues Impact/observation Resolution/action required Scrap goods or finished goods cannot be measured for the attached view in the store Sections showing many different sizes of items as well as different products Items to kept in proper rack or section area to be easily identified Walking area to be clean to avoid any mishap or incidences causing human accident WH 1, 2, 3 & 4 57
- 5. 息 2013 Grant Thornton Consulting Limited, Uganda | Business Process Audit | 30/10/2013 Stores management Covenant issues Impact/observation Resolution/action required Tags are attached to the finished goods, however it can be seen that some items can be removed and the tags are not clearly indefinable for a product Damaged items considered for scrap or reuse or re production should be stated and classified Physical stock take is done on different color combination basis which changes every time the physical stock take is made Color codes for categories to be defined FIFO or LIFO to be used for easy stock count and easy management WH 1, 2, 3 & 4 58
- 6. 息 2013 Grant Thornton Consulting Limited, Uganda | Business Process Audit | 30/10/2013 Stores management Covenant issues Impact/observation Resolution/action required Special order or standard order is not separated and chances of human error are high To improve customer service, separate sections to load special customer orders or standard orders is highly recommended Different sizes and variants stacked together and also at multiple warehouse locations Similar items to be stacked together WH 1, 2, 3 & 4 59