Improving Audit Outcomes Essay

2493 WordsSep 6, 201410 Pages
Improving audit outcomes - SCM challenges and internal control weaknesses IMFO - Public Sector Finance Seminar 10 June 2014 INTRODUCTION • The little research done in SCM in local government suggests there is a lack of internal control in SCM • This has led to fraud and corruption • Linked to the poor controls is inadequate monitoring and evaluation • Hence some deviations or non-compliance have gone by undetected in the past • However, the Auditor-General has clamped down on this • Accordingly, there has been a lot of improvement in terms of reducing irregular expenditure and improving controls, but more work still needs to be done “Almost all quality improvement comes via simplification of design, manufacturing, layout, processes and procedures.” – Tom Peters STRATEGY OVERVIEW SCM STRIVING FOR EXCELLENCE – 6 ENABLERS OF EXCELLENCE Focused teams with clearly defined responsibility, authority & accountability for all Supply Chain Management activities Organization & Structure Supply Chain Processes 6 Enablers to Achieve SCM Excellence Strategic Sourcing & Warehouse Processes Learning / Skills People Technology Use of best-in-class spend analysis, demand planning, inventory optimization, e-sourcing /eprocurement (Source2Pay), warehousing and measurement tools. Best-in-class Supply Chain Management processes with standardised item/service codification and the application of management methodologies relevant to item or category characteristics. Strategic Sourcing teams using category management and deconstructing price methodologies, transactional teams automated ordering & decision support tools and warehousing teams working within advanced warehouse management systems using inventory optimization tools. Educated key stakeholders. Right people in the right position, empowered and driven by accountability with a common and comprehensive

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