Workflows and Standard Operating Procedures

Raghunath.T, Director

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HLB HAMT - Accounting Firm in UAE

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    Challenge

    A manufacturing sector client with whom we were associated was facing regular issues of material non-availability despite the Purchase Head being a seasoned employee who had excellent knowledge of products and suppliers

    All departments were clear that it was the Purchase team which was at fault for the issue, but there was no apparent solution

    Work done and Impact

    • On closer analysis of the internal processes, we found that the root cause was that there were too many tasks that the purchase head was doing by himself due to “confidentiality” issues although these were not of any strategic significance.
    • The rest of the team was usually engaged in very trivial tasks of little value addition.
    • The consultants proposed a new workflow and delegation of authority structure in the department, with proper controls. This ensured better work flows and accountability at all levels, and improved material availability resulting in greater order fulfillment rate, reduced emergency purchases etc.
    • The company’s dependence on the Purchase Head was also reduced, thus benefiting business continuity

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