AUDITG2- FINAL PRESENTATION

Project Focus and Objectives
📌 The audit focused on the catering service and inventory management processes of Uncle Nollie's food hub.
🚫 Identified initial issues included inaccurate inventory counts, food wastage, catering delays, and potential non-compliance with food safety standards.
🎯 Key objectives were to improve catering workflow, control inventory procedures to manage costs, and identify cost-saving opportunities.

Current Operations and Challenges
🚗 Operational challenges include limited visibility and a hard-to-find location, leading to customer inconvenience and risk of losing them to competitors.
📉 Process issues involve inventory inaccuracies due to human error, food wastage from overpreparation, and potential delays in catering fulfillment.
💰 The business currently employs a hybrid just-in-time and just-in-case inventory approach, balancing freshness with protection against market price fluctuations.

Identified Risks and Existing Controls
⚠️ Major catering risks include order errors, payment risks, delivery issues, and cancellations.
📦 Inventory risks encompass stockouts (due to manual tracking), spoilage/waste, and supply delays.
🛡️ Current controls include order confirmation, cash advancement for security, CCTV for theft protection, and manual inventory monitoring by staff.

Gaps and Recommendations for Improvement
❌ Key control gaps are inadequate inventory management leading to spoilage, and poor customer vetting resulting in non-payment risks.
✅ Recommendation for spoilage is implementing a robust inventory tracking system and adopting the FIFO (First-In, First-Out) method.
💵 To mitigate cost burdens, the team suggests negotiating better prices with suppliers and actively monitoring market price trends.
🤝 For group purchases/purchasing coordination, creating a shared shopping list (e.g., in Excel) is recommended to avoid over/under-purchasing.

Implementation Plan and KPIs
💻 Inventory management implementation includes setting up Excel-based monitoring and establishing automatic reorder points for low stock alerts.
💳 Payment management strategies involve implementing stricter credit control (e.g., upfront deposits) and using formal digital payment options to reduce delays.
📊 Key Performance Indicators (KPIs) to measure progress include Inventory Turnover Rate, Days Inventory Outstanding (DIO), and Payment Collection Rate.

Key Points & Insights
➡️ The audit revealed that inventory inaccuracies directly translate to cost issues, waste, and service delays for Uncle Nollie's.
➡️ To combat spoilage, implementing FIFO is crucial to ensure perishable goods are used before they expire.
➡️ Diversifying suppliers is advised to mitigate delays and create leverage for negotiating better prices against rising market volatility.
➡️ Formalizing purchasing processes through shared digital checklists will enhance collaboration and prevent excessive ordering.

📸 Video summarized with SummaryTube.com on Nov 27, 2025, 02:11 UTC