1. © 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
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WH – 1, 2, 3 & 4
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54

2. © 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
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WH – 1, 2, 3 & 4
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55

3. © 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
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WH – 1, 2, 3 & 4
56

4. © 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
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57

5. © 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
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WH – 1, 2, 3 & 4
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58

6. © 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
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WH – 1, 2, 3 & 4
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59