13-11-19 Audit observations
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<strong>Audit</strong> Observations(Aug.09 till Apr.<strong>13</strong>) and remedies suggested November <strong>19</strong>, 20<strong>13</strong><br />
B&C dept Page 1
<strong>Audit</strong> Observations(Aug.09 till Apr.<strong>13</strong>) and remedies suggested November <strong>19</strong>, 20<strong>13</strong><br />
B&C dept Page 2
<strong>Audit</strong> Observations(Aug.09 till Apr.<strong>13</strong>) and remedies suggested November <strong>19</strong>, 20<strong>13</strong><br />
Purchase related Inventory related<br />
S.no. <strong>Audit</strong> point Remedy S.no. <strong>Audit</strong> point Remedy<br />
1 Turn-around time of PRs<br />
Daily monitoring & assignment of buyer<br />
Physical verification and Cycle counting throughout the month and<br />
1<br />
names by RHs<br />
stock counting<br />
month-end report will help<br />
2 Splitting of indents<br />
RHs to escalate to respective functions on<br />
To be a discipline. Mid-month review will propel<br />
2 Real-time transactions<br />
notice<br />
correction<br />
3 Standard T&Cs<br />
Minimum standard T&C to be part of all<br />
POs and higher the value, higher the<br />
attention to details & T&C.<br />
3 Stock Health<br />
Mid-month & month-end exercises and<br />
immediate escalation to concerned categories<br />
will help<br />
4 Consolidation<br />
Part of OCA and hence, RHs need to take<br />
4<br />
Matching theoretical v/s Quarterly random review will reinforce process<br />
it up with respective functions<br />
actual<br />
AMC expiry report to be taken as part of<br />
Confirmatory<br />
5 Timely AMC renewal<br />
5<br />
each month-end.<br />
transactions<br />
Open docs –<br />
To be part of mid-month exercise so that<br />
6<br />
6 Inventory optimization<br />
PR/PO/GRIR/Advance month beginning will be clean<br />
RHs to escalate to respective functions on<br />
7 Confirmatory documents<br />
notice<br />
Warehousing related Cross-category related<br />
S.no. <strong>Audit</strong> point Remedy S.no. <strong>Audit</strong> point Remedy<br />
robustness<br />
Indents to be received in advance before the<br />
material is issued<br />
Mid-month & month-end review of coverage will<br />
help optimize inventory<br />
1 Warehouse optimization Month-end review and escalation 1 OSP – Contract performance<br />
2 Stacking & storing Optimal isle space; FIFO friendly 2 LOG – MHE or warehouse related<br />
3 Safety & security Periodic and annual third party review 3 NP – quality, SOPs & RNI related<br />
4 Timely renewal of Contracts To initiate 3 to 4 months in advance 4 CON – quality & SOPs related<br />
Branch-specific Waste Management related<br />
S.no. <strong>Audit</strong> point Remedy S.no. <strong>Audit</strong> point Remedy<br />
1 SoD Quarterly review 1 Real-time transactions Monthly review of the transactions<br />
Seek quarterly reviews & liasoning<br />
with respective categories.<br />
2 MIS Periodic review 2 Pick-up frequency To be part of SO and sufficient to be a deterrent<br />
3 Compliance to PAR Revisiting of SOPs 3 Customer reconciliation Yearly with NDCs<br />
4 Compliance to SOPs Revisiting of SOPs 4 Stock Health Fortnight review<br />
5 SAP/SRM related To be escalated thro’ Service Desk Vendor Management related<br />
S.no. <strong>Audit</strong> point Remedy<br />
1 Vendor reconciliation Yearly with NDCs<br />
2 Vendor rationalization To aggregate with few vendors<br />
B&C dept Page 3
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