Major Client Problems & Reasons Identified In Process Study
Major Client Problems
Reasons Identified In Process Study
01
Reduced Stock Turnover & Negative Stock
Negative inventory
1 Cr +
1. Lack of physical counting and cross-referencing of GRN with Invoice.
2. Debit note are raised very late due to shortage and excesses identified in a delayed manner.
3. Manual bills not reconciled and corrected on a regular basis.
4. Absence of control to block negative stock.
02
Absence of footfall and divert data collection
Average footfall/day
400 +
1. Lack of capturing the customer footfall data and divert data.
2. Absence of collection of customer feedback.
3. UPI and card statements are not reconciled on the basis of actual bank receipts.
03
Absence of approval process and data based decision making
Average PO \ in month
150 +
2. Absence of tracking for approvals requested v/s granted for purchase orders.
3. Absence of involvement of salesperson in planning requirements to inculcate fast moving designs and latest trends.
04
Excessive duplicate accounts in books of Tally
Redundant accounts
250 +
1. Improper grouping of accounts and same type of account grouped in two different groups.
2. Different accounts maintained for different GST Rates of same expense account.
3. No defined framework for usage/creation of accounts & master creation.
Solutions and Execution :
01. Streamlined Purchase approval process reducing time spent by management
- Purchase Request process was implemented to collect information from the sales executives to include latest preferences by the consumer.
- Approval by the Purchase Supervisor for the requested designs and the quantity .
- Provision of purchase planner to help supervisor plan for purchases using past sales data & trends promoting data driven decision making.
- Implementation of PO Approval to submit the designs planned to be purchased to the management.
- Recommendations for reorders for top sold designs to increase sales multifold by capitalizing on recent trends.
02. Enhancements in Inventory Management System to avoid Stock mismatch
- Introduction of LR entries in SS Retail and linking the same with GRN.
- Implementation of Approval Mechanisms for Bundle Opening, bringing visibility of bundles lying in warehouse.
- Implementing Stock Transfer mechanisms by actual scanning of barcodes to prevent inaccurate entries.
- Stock count taken for Warehouse and showroom to update current stock in system.
- Blocked negative stock in SS Retail to prevent further instances of negative stock accumulation.
03. Employees were given the role clarity
- Simplified employee flows were provided to employees to ensure clarity and adaptation to new process.
- Checklists provided to employees to have a regular follow-up on tasks to be performed and prerequisites for the tasks.
- Role-wise responsibilities were defined to facilitate clear division of work and allotment of responsibilities.
04. Accounts Restructuring and Reporting
- Implemented Day End Reporting system to the immediate superiors (Semi-Automated).
- ▪ Escalations for statutory and non statutory due dates.
- Daily escalations for cash and sales reconciliation performed by the sales counter.
- Petty cash separated and each expense head tracked separately.
- GST and TDS configurations enabled in Tally for accounting.
- Grouping of expenses and elimination of duplicate accounts.
