Project Overview
Project: Physical Verification of Fixed Assets & Establishing a Fixed Asset Management Process
Client Profile: The client is a leading bakery company in the Middle East, operating across seven countries with 10 plants and 25 depots. The company manages inventory across multiple locations in Saudi Arabia.
Challenges
- Incorrect Asset Categorization: Many assets in the Fixed Asset Register were categorized incorrectly.
- Outdated Location Data: Asset location data was outdated and inaccurate.
- Reconciliation Issues: Lack of timely reconciliation of fixed assets.
- Absence of SOP: No standard process or SOP for fixed asset management.
Solutions Provided
- Action Plan Implementation Post Physical Verification: Conducted a detailed physical verification of plant assets, identifying issues that were rectified systematically. Finalized the audit only after all action plans were implemented.
- Creation of SOP for Fixed Asset Management: Submitted a comprehensive SOP for the management, handling, and monitoring of fixed assets to streamline operations.
- Quarterly Physical Verification Recommendation: Proposed a quarterly physical verification process to ensure alignment between book assets and physical assets. This ensures control measures are intact and assets are not misused.
Partnership with BSS – Key Benefits
BSS partnered with the client to deliver a comprehensive Fixed Asset Management solution, addressing the identified challenges. Key steps included:
- Drafting and implementing a Standard Operating Procedure (SOP).
- Conducting physical verification across all plants.
- Updating the Fixed Asset Register to ensure the accuracy of asset categories and locations.
- Regular monitoring of fixed assets.
- Tagging all assets for better traceability.
Outcome
Through these measures, BSS optimized fixed asset management, improving accuracy, accountability, and operational efficiency.