Client Profile:
A publicly listed alcoholic beverage manufacturing company with a pan-India presence and operations spanning multiple plants and distribution hubs
(Annual revenue: ~$144 million USD; ERP: SAP)
Engagement Scope:
The company engaged CFO Pulse to strengthen its Internal Financial Controls (IFC), conduct a comprehensive risk-based process review, and identify cost optimization opportunities across its manufacturing and supply chain operations.
CFO Pulse Approach:
🔒 1. IFC Audit & SAP Master Data Review
- Conducted a full-cycle IFC audit and identified critical control weaknesses in procurement, inventory, and order processing
- Discovered gaps and inconsistencies in SAP Master Data, especially in vendor, item, and cost center coding—leading to reporting errors and compliance risks
- Revamped the Risk Control Matrix (RCM) to align controls with business objectives and SAP architecture
🔁 2. Plant-Level Operational Efficiency Review
- Analyzed line-wise production efficiency, equipment downtime, and material wastage across multiple units
- Identified excessive overtime expenses due to over-dependence on permanent workforce vs flexible staffing
- Flagged cost leakages from under-utilized production shifts and poor preventive maintenance scheduling
🚚 3. Freight Cost & Logistics Optimization
- Conducted an in-depth analysis of inbound freight and transportation contracts
- Discovered overcharges on halting fees by a major logistics vendor and recommended corrective billing protocols
- Centralized the scrap sale strategy, after identifying better pricing from the Maharashtra plant, unlocking higher recovery due to scale-based bargaining
🔮 4. Future Readiness & Control Strengthening
- Benchmarked internal processes against best practices for large-cap listed manufacturers
- Provided a roadmap for improved SOP design, tighter budgetary controls, and automated reporting triggers in SAP
- Advised on expanding the internal audit scope to include emerging risk areas like vendor consolidation and ESG-linked metrics
Tangible Results:
- Identified and corrected cost inefficiencies totaling over ₹7.5 million (~$90,000 USD)
- Improved SAP data quality and system-based controls, reducing manual intervention and reporting delays
- Enhanced production cost control through line efficiency and overtime planning
- Strengthened governance and control readiness for statutory and board-level reviews
