Bizpact

Fixed Asset Management

Case Study 5: Physical Verification of Fixed Assets

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  • Outdated Location Data: Asset location data was outdated and inaccurate.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.

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