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Hubmart Proposal On Inventory Mgt. Service
Hubmart Proposal On Inventory Mgt. Service
CONSULTANTS
TO PROVIDE INVENTORY MANAGEMENT
SERVICE
TO
HUBMART STORES
LIMITED
SUBMITTED BY:
BBC PROFESSIONALS
[CHARTERED ACCOUNTANTS]
Proposal for Engagement as Consultants to provide Inventory Management Service to HSL – By BBC Page 0
HUBMART STORES
LIMITED
PROPOSAL
FOR ENGAGEMENT AS CONSULTANTS TO PROVIDE
INVENTORY MANAGEMENT SERVICE
CONTENTS PAGE
Proposal for Engagement as Consultants to provide Inventory Management Service to HSL – By BBC Page 1
1.0 BRIEF INTRODUCTION OF OUR FIRM
1.1 ESTABLISHMENT
BBC PROFESSIONALS (Formerly Balogun Badejo & Co) was established on 1 April, 1969
and it is one of the largest indigenous practicing accounting firms in Nigeria offering to
clients; professional auditing, accounting, tax, insolvency, consultancy, financial
and management advisory services, amongst others.
The firm had continued to render excellent accounting services to her numerous clients and
the nation at large for over 48 years. During these years of existence, the firm has had the
privilege of having two Partners as Past Presidents of The Institute of Chartered
Accountants of Nigeria (ICAN). These are Sir John A Balogun, KSC and Chief Adeboye
O Badejo in 1980/81 and 1999/2000 respectively.
We also make bold to say that one of our own that trained and qualified in BBC Professionals,
Mr. Chidi Ajaegbu was the Golden Jubilee President of the Institute, a rare privilege
that we cherish and which adds credence to our corporate existence.
For details about PrimeGlobal, and the services it offers its independent member firms, visit
the PrimeGlobal website at www.primeglobal.net.
Proposal for Engagement as Consultants to provide Inventory Management Service to HSL – By BBC Page 2
The PrimeGlobal Headquarters is located at:
1.4 MISSION
Our mission is to excel in our special areas of proficiency: accounting, auditing,
taxation, management advisory services, insolvency, etc and place at the disposal of
our clients the highly technical skills peculiar to the very professional accountant.
In BBC, we believe that no one knows it all. Consequently, we brainstorm to proffer solutions
when the need arises.
Proposal for Engagement as Consultants to provide Inventory Management Service to HSL – By BBC Page 3
BBC Partners at a Brainstorming session
1.6 COMMITMENT
Our firm is committed to:
excellent quality and timely delivery of our service.
conscientious maintenance and improvement of our place in the profession.
contribution to the development of our community and profession in manpower
development, technical expertise, meaningful and stable employment in a healthy
environment whilst simultaneously discharging our social responsibilities.
dissemination of technical information towards regular communication to our
staff, clients and the public.
Proposal for Engagement as Consultants to provide Inventory Management Service to HSL – By BBC Page 4
1.9 KEY DRIVERS OF OUR PRACTICE
22 33
11
44 55
Proposal for Engagement as Consultants to provide Inventory Management Service to HSL – By BBC Page 5
5. O O Agbeje - Partner
1.9 KEY DRIVERS OF OUR PRACTICE (cont’d)
BBC PROFESSIONALS (Chartered Accountants) (Formerly Balogun Badejo &
Co) is well known for Efficiency, Integrity and Professionalism when it comes to the
practice and dealing with our clients. We take pride in the competence and experience of the
partners who drive the firm. We present a brief profile of our Partners.
(1)
JAMES O. OBOGWU
Chairman/Managing Partner
He attended St Paul’s Grammar School, Ebu and University of Benin, Benin City, where he
bagged a Master in Business Administration (MBA). Employed as a Trainee and rose
through the ranks to become a Partner on 1 April 2005. JOO became the firm’s Managing
Partner on 1 April, 2013.
Mr. Obogwu is a Fellow of both the Institute of Chartered Accountants of Nigeria and the
Chartered Institute of Taxation of Nigeria.
JOO as he is fondly called was the firm’s Deputy Managing Partner up to 31 March, 2013. He
is the Editor-In-Chief of our in-house journal, TICK Magazine.
He is currently:
Proposal for Engagement as Consultants to provide Inventory Management Service to HSL – By BBC Page 6
- A member of Public Practice Monitoring Committee of the Institute of Chartered
Accountants of Nigeria.
1.9 KEY DRIVERS OF OUR PRACTICE (cont’d)
(2)
EVERESTUS U. ITODO
Deputy Managing Partner
Everest, as he is popularly called by friends hails from Amalla in Udenu LGA of Enugu state
of Nigeria. He attended Ifruoka Primary School Amalla–Udenu LGA in Enugu State,
Government Day Secondary School Kakuri, Kaduna and St. Theresas’ College, Nsukka.
He obtained B.Sc. in Applied Accounting from Oxford Brookes University, UK and Master of
Science in Management (M.Sc. Management) from University of Lagos, Akoka, Nigeria.
EUI is a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN) and the
Association of Chartered Certified Accountants (ACCA), UK. He is also an Associate of the
Chartered Institute of Taxation of Nigeria (CITN).
Before joining the firm in January 2006, he had worked with Mu’Allahyidi & Co, (Chartered
Accountants), Supertex Limited, and Union Adhesive & Chemical Company Limited, all in
Kaduna. He rose to the position of Audit Manager in the firm on 1 April, 2008, was admitted
a Partner on the 40th Anniversary of the firm on 1 April, 2009 and became the firm’s Deputy
Managing Partner on 1 April, 2013.
He is currently:
The Finance Partner of the Firm;
Chairman of the Firm’s Technical, Research and Training Committee; and
A Practice Monitoring Reviewer of the Institute of Chartered Accountants of Nigeria
(ICAN).
Proposal for Engagement as Consultants to provide Inventory Management Service to HSL – By BBC Page 7
A member of forum of firms Committee of the Institute of Chartered Accountants of
Nigeria.
(3)
AYODELE M. ADETUYI
Partner
Mr. Adetuyi attended Egan High School Ojo, Lagos and Olabisi Onabanjo University, Ago
Iwoye, Ogun State.
AMA obtained Master in Business Administration (MBA, Finance) from University of Lagos,
Akoka, Nigeria and Master of Accounting & Finance (M.sc) from University of Liverpool, Liverpool,
UK.
Before joining BBc in 2006, he had worked with A A Consultants; Royal Value International
Limited and Oladeji Olagunju & Co (Chartered Accountants), where he rose to the position of
an Audit Manager.
Mr. Adetuyi also has the passion of impacting knowledge, and currently serves as Director of
Studies at Foresight Professional Institute, Lagos, an ICAN Study Centre. He is a member of
Ikoyi Club.
AMA who was admitted a Partner on 1 October, 2010 is currently the Tax Partner, IFRS
Paper Presenter and Chairman of the firm’s International Financial Reporting Standard
(IFRS) implementation Team.
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1.9 KEY DRIVERS OF OUR PRACTICE (cont’d)
(4)
Mrs. Egwuenu attended Ibru College Agbarha Otor, Delta State and Edo State University,
Ekpoma, Edo State, where she studied Accountancy. Also, she studied at University of Lagos,
Akoka where she obtained Master of Science in Management (M.Sc. Management).
Mrs. Egwuenu is a member of the Institute of Chartered Accountants of Nigeria (ICAN) and
The Chartered Institute of Taxation of Nigeria (CITN). She is an IFRS Paper Presenter and
the Vice Chairman of the firm’s IFRS implementation team.
She had worked with Omega Bank Plc (now Enterprise Bank Limited), Shonubi Abah & CO
(Chartered Accountants) and Bytex Nigeria Limited before joining Balogun Badejo & Co.
GCE as she is popularly called became a partner in the firm on 1 April, 2011 and she is
currently the Administrative Partner.
Proposal for Engagement as Consultants to provide Inventory Management Service to HSL – By BBC Page 9
1.9 KEY DRIVERS OF OUR PRACTICE (cont’d)
(5)
OLANIYI O. AGBEJE
Partner
Olaniyi Agbeje hails from Ayedun Ekiti in Ikole Local Government area of Ekiti State. He
attended Army Children Primary School, Kakuri, Kaduna State and Comprehensive High
School, Ayedun-Ekiti, Ekiti State. He graduated from Ondo State Polytechnic (now Rufus
Giwa Polytechnic) Owo, Ondo State.
He started his career as an Accounts Officer with Modecom Solution Limited – A telecoms
dealer before moving to Temidayo Adebayo & Co, a firm of Chartered Accountants as
Graduate Training where he rose to the rank of an Audit Manager. He later joined BBC
Professionals (formerly Balogun Badejo & Co.) in February, 2010 in pursuant of his
professional career.
He is well grounded in audit and assurance, financial modeling and analysis, Reporting
Accounting, etc.
Proposal for Engagement as Consultants to provide Inventory Management Service to HSL – By BBC Page 10
1.10 PARTNERS AND SENIOR TECHNICAL STAFF
Proposal for Engagement as Consultants to provide Inventory Management Service to HSL – By BBC Page 11
QUALIFYING SENIORS AND TRAINEES
At varying degrees of qualification and experience – over 40 in number.
Headquarters - Lagos
Charter House
7 McNeil Road
Sabo, Yaba
Lagos
G P O Box 3260, Lagos
Tel: +234 (0) 8112731722
Website: www.bbccharter.com
Email: bbccharter@yahoo.com and bbc@bbccharter.com
Headquarters contact officers:
Name Designation GSM Email
J O Obogwu Managing Partner 08023139061 obogwu@bbccharter.com
joobogwu@yahoo.com
Proposal for Engagement as Consultants to provide Inventory Management Service to HSL – By BBC Page 12
3.0 EXPERIENCES AND SIMILAR ASSIGNMENTS
We have relevant cognate experience and a strong record of value-added service to our
esteemed clients which we have been doing for over four (4) decades of our existence.
Proposal for Engagement as Consultants to provide Inventory Management Service to HSL – By BBC Page 13
NACA Federal Government of Nigeria
South South Healthcare Delivery Programme – G.77
West African Examination Council (WAEC)
Even though IFRS took off effectively in Nigeria from 2012 in line with the Roadmap, we have
acquired skills and exposures prior to the effective date knowing full well our client base
which cuts across virtually every sector of the economy. Our joint assignments with our
Global Partners really added value to BBC Professionals coupled with Foreign Trainings
attended by our representatives.
We have been privileged to render various services in IFRS viz: Public Trainings; Financial
Statements Reviews; Conversions and full Implementations amongst others. Some of the
clients’ serviced by our Firm on IFRS related assignments are listed below:
Proposal for Engagement as Consultants to provide Inventory Management Service to HSL – By BBC Page 14
Some BBC Partners in a group photograph with our Foreign Partner
after an IFRS Training organized by the Firm in Collaboration with
LDP (South Africa) – a member of PrimeGlobal at Lagos Airport
Hotel, Ikeja - Lagos
Some Other assignments carried out by the firm in recent past are
listed below:
Mission Securities Limited Several Public Training Courses and general Advisory.
Proposal for Engagement as Consultants to provide Inventory Management Service to HSL – By BBC Page 15
Federal Radio Corporation of Nigeria (FRCN) TAXATION SERVICES
National Broadcasting Commission (NBC) Pipelines & Products Marketing Company Limited (PPMC)
News Agency of Nigeria (NAN) NEM Insurance Plc
Nigerian Television Authority (NTA) Bowen Micro Finance Bank
Prime Publications Limited OAS Helicopters
The Daily Times of Nigeria Plc - NSE Quoted Electronic Payplus Limited
Allport Cargo (W.A) Limited
Life Press Limited
Coates Brothers (WA) Limited
United Nations Population Council (UNFPA) Metal Furniture Nigeria Limited
Nigeria Social Insurance Trust Council (NSITF) Metec (W.A.) Nigeria Limited
Nigerian Foundries Limited
Enertek Bendix Limited
Several others
Proposal for Engagement as Consultants to provide Inventory Management Service to HSL – By BBC Page 16
Hubmart’s raison d’être and top priority can all be summed up in one word- its customers. It
opened shop with one sole purpose, and that is to constantly provide sterling levels of
customer service and put smiles on the faces of its customers.
VISION
To be the leading retailer in Nigeria.
CORE VALUES
Teamwork
Intrapreneurship
Professionalism
Passion & Innovation
Integrity
A good Inventory Management system has thus become a credible process by which
Inventory Management professionals provide up-to-date information on the stock supplied,
reserved and sold at every given time and thus issue an opinion as to the true and fair view of
the entity’s inventory.
There is also the need for the inventory exercises to be conducted timely within an agreed
period and/or at regular intervals or else, it will not be useful in serving the intended
purpose. In doing this, the confidence of the stakeholders in the business will be greatly
enhanced.
In line with the above, our firm – BBC PROFESSIONALS [Chartered Accountants] hereby
forward its application to be considered for appointment as Inventory Management
Consultants to your Company. Having been in existence for over forty nine (49) years in
rendering similar services to numerous clients, we want to be part of the Company’s Project
of Transformation, Transparency and Accountability.
Proposal for Engagement as Consultants to provide Inventory Management Service to HSL – By BBC Page 17
Critical review of internal control processes and procedures with a view to ascertaining
the existence, adequacy and compliance of the Inventory system at the different retail
stores;
Reconciling the physically counted products with what is provided on the Inventory
Ledger;
Issuing our reports at the end of the inventory exercise;
Bringing to the knowledge of Management all observed weaknesses in the internal
control systems and operations generally; and making recommendations for
improvements.
Proposal for Engagement as Consultants to provide Inventory Management Service to HSL – By BBC Page 18
5.0 BRIEF METHODOLOGY PROPOSED FOR
PERFORMING THE ASSIGNMENT
Proposal for Engagement as Consultants to provide Inventory Management Service to HSL – By BBC Page 19
5.2 PRELIMINARIES:
Upon our appointment as Inventory Management Consultant to your Organization, we shall
carry out the following:
Forward our Letter of Acceptance signifying our acceptance of the appointment.
Issue Letter of Engagement which shall spell out the terms of engagement.
Hold meetings with the members of the team in charge of inventory at the different
retail stores.
Issue our strategy to actualize the objectives of the exercise
Consequently, we shall obtain necessary background information and documentations for the
purpose of the exercise.
Such background information and documentations shall include but not limited to:
1. Collection of the Inventory Ledger at each of the Retail outlets divided into the
different units:
- Warehouse
- Production
- Store
2. The different Stock-Keeping Units (SKUs) of the products in each of the Units;
3. The Inventory Ledger should provide the Product Barcode for ease of reference;
4. Existing reporting formats to enable deployed staff integrate the results of the exercise
into the already laid-down procedures
The above are expected to be obtained before commencement of the assignment after
which such information will be discussed with the personnel to be engaged on the project
in order to:
Proposal for Engagement as Consultants to provide Inventory Management Service to HSL – By BBC Page 20
5.3 WORK PLAN AND METHODOLOGY
General Procedures
Our proposed procedure is as listed below:
o We shall organize the different units into logical segments with all similar SKU’s
grouped together and accessible. We shall count all Warehouse Inventory, The
Production Inventory and Retail Store Inventory.
o Conduct second counts on any SKUs that deviate from the inventory ledger.
o Once we are certain that all inventory counts are fully accurate, we shall
reconcile the inventory ledger and stock on hand reports by deducting or adding
stock to the variant SKUs.
o We shall delve into discrepancies and look for root causes such as: improper
intake processes when receiving goods, damaged goods improperly deducted
from inventory, theft, improper accounting for returned goods.
o The cycle counting procedure shall be put in place to create regular inventory
counting procedure to aid proper procedure.
Proposal for Engagement as Consultants to provide Inventory Management Service to HSL – By BBC Page 21
5.4 PROCESS OVERVIEW AND QUALITY ASSURANCE
Process overview and quality assurance obtainable in BBC is better experienced than
explained. Our process starts by planning the assignment. The plan sets out clearly what
project objectives we intend to achieve and at what time frame.
Proposal for Engagement as Consultants to provide Inventory Management Service to HSL – By BBC Page 22
After necessary consideration and approvals of the reports by all concerned, we shall issue
the final report to the Management.
5.6 Conclusion
We recognize that all methodologies to be adopted in carrying out the assignment may not
have been spelt out fully in this proposal while other approaches and methodology will be
contingent on-the-job and situations that may arise during the field work.
Proposal for Engagement as Consultants to provide Inventory Management Service to HSL – By BBC Page 23
6.0 PROPOSED TEAM STRUCTURE FOR THE PROJECT & DRAFT
TIMELINE
Our understanding of the project is for the count of the inventory of Hubmart Stores Limited at
the three retail outlets in Lagos namely, Ikeja, Victoria Island and Lekki.
Please find below our personnel deployment plan for the project at each of the outlets.
Engagement Partner
Quality Control
Partner
Team Lead
The Proposed Team was chosen considering the Client, Nature of Job, envisaged Timing,
Deliverables expected and most importantly, the experience, exposure and calibre of Personnel.
We are confident that the Staff mix will be adequate for the project and if there is need to deploy
additional personnel, we shall act accordingly.
Proposal for Engagement as Consultants to provide Inventory Management Service to HSL – By BBC Page 24
Please find attached.
Our proposed professional fee for this exercise is three million five hundred and fifty
thousand Naira only as detailed below:
Items Amount
(=N=)
Disbursements 400,000
Total 3,550,000
Proposal for Engagement as Consultants to provide Inventory Management Service to HSL – By BBC Page 25
Proposal for Engagement as Consultants to provide Inventory Management Service to HSL – By BBC Page 26
8.0 RESUME OF SOME KEY PESONNEL OF BBC PROFESSIONALS
Chairman/Managing Partner
Position:
Name of Firm: BBC PROFESSIONALS
Education:
School Date Qualification
University of Benin, Benin City 1999 – 2001 MBA (Business Administration)
St. Paul Grammar School, Ebu 1982 – 1987 WAEC/GCE O’Level
Professional qualifications:
Institute of Chartered Accountants of Nigeria (ICAN) - FCA
Chartered Institute of Taxation of Nigeria (CITN) - FCTI
Employment Record:
Company Period Position
BBC Professionals 1 April 2013 – date Managing Partner
BBC Professionals 1 April ‘12 to 31 March,‘13 Deputy Managing Partner
BBC Professionals 2005 to 31 March, 2012 Partner
BBC Professionals 2001 to 2004 Audit Manager
BBC Professionals 1997 to 2001 Audit Senior
BBC Professionals 1986 to 1997 Audit Trainee
Proposal for Engagement as Consultants to provide Inventory Management Service to HSL – By BBC Page 27
RESUME OF SOME KEY PESONNEL OF BBC PROFESSIONALS
Education:
School Date Qualification
University of Lagos, Akoka 2011 M.Sc. (Management)
Oxford Brookes University, Oxford, UK 2009 B.Sc. Applied Accounting
Skolak Resources Information Tech. Centre 1999 Cert. Data Processing
St. Theresa’s College, Nsukka 1992 Senior Sec. School Cert.
Ifrouka Primary School, Amalla 1986 First School Leaving Cert.
Professional qualifications:
Institute of Chartered Accountants of Nigeria (ICAN) - FCA
Chartered Institute of Taxation of Nigeria (CITN) - ACTI
Association of Chartered Certified Accountants (ACCA), UK - FCCA
Employment Record:
Company Period Position
BBC Professionals 1 April ‘13 – date Deputy Managing Partner
BBC Professionals April ‘09 to 31 Mar, ‘13 Partner
BBC Professionals 2006 to 2009 Manager, Supervisor,
Audit Senior
Mu’allahyidi & Co, Kaduna 2003 to 2006 Assist. Audit Mgr, Senior
Supertex Limited, Kaduna 1995 to 2003 Shift Section Controller
Union Adhesive & Chem. Co Ltd. 1993 to 1995 Administrative Clerk
Proposal for Engagement as Consultants to provide Inventory Management Service to HSL – By BBC Page 28
RESUME OF SOME KEY PESONNEL OF BBC PROFESSIONALS
Partner
Position:
BBC PROFESSIONALS
Name of Firm:
Ayodele Morounkeji ADETUYI
Name of Staff:
Accountancy/Taxation
Profession:
14 September, 1975
Date of Birth:
Education:
School Date Qualification
University of Liverpool, UK 2o12 – 2016 International Fin. Reporting
University of Lagos, Akoka 2011 MBA (Finance)
Olabisi Onabanjo University 2006 B.Sc. (Banking & Finance)
Business Solution Limited 1999 Cert. Data Processing
Egan High School, Ojo, Lagos 1993 Senior Sec. School Cert.
St Dominic Catholic Primary School 1987 First School Leaving Cert.
Professional qualifications:
Institute of Chartered Accountants of Nigeria (ICAN) - FCA
Chartered Institute of Taxation of Nigeria (CITN) - ACTI
Employment Record:
Company Period Position
BBC Professionals Oct. 2010 to date Partner
BBC Professionals 2003 to Sept, 2010 Audit Senior, Supervisor,
Senior Tax/Audit Manager
Oladeji Olagunju & Co 2001 to 2003 Tax/Audit Manager
Royal Value Int’l Limited 2000 to 2001 Accountant
Oladeji Olagunju & Co 1998 – 2000 Audit/Account Trainee
A A Consultant 1997 – 1998 Admin Officer
Proposal for Engagement as Consultants to provide Inventory Management Service to HSL – By BBC Page 29
RESUME OF SOME KEY PESONNEL OF BBC PROFESSIONALS
Partner
Position:
BBC PROFESSIONALS
Name of Firm:
Gloria Chineku EGWUENU (Mrs.)
Name of Staff:
Accountancy/Taxation
Profession:
21 May, 1973
Date of Birth:
Education:
School Date Qualification
University of Lagos, Akoka 2012 M.Sc. (Management)
Tenderfem Computer Ltd. Osogbo, Osun State 1996 Diploma Computer Studies
Edo State University, Ekpoma, Edo State 1995 B.Sc. Accounting
Ibru college, Agbarha Otor, Delta State 1987 West African School Cert.
Abbi girls Sec. Sch., Abbi, Delta state 1984 “ “ “
Professional qualification:
Institute of Chartered Accountants of Nigeria (ICAN) - FCA
Employment Record:
Company Period Position
BBC Professionals April 2011 to date Partner
BBC Professionals 2004 to 2011 Manager, Supervisor, Senior
Bytex Nigeria Ltd 2004 to 2006 Accountant
Shonubi Abah & Co 1999 to 2004 Auditor
Omega Bank Plc 1998 to 1999 Business Dev. Officer
(Now Enterprise Bank Limited)
Good shepherd High School 1997 to 1998 Class Teacher
The Accountant general’s Office 1995 to 1996 Accounting Officer
Oshogbo Osun State (NYSC)
Proposal for Engagement as Consultants to provide Inventory Management Service to HSL – By BBC Page 30
RESUME OF SOME KEY PESONNEL OF BBC PROFESSIONALS
Partner
Position:
BBC PROFESSIONALS
Name of Firm:
Olaniyi AGBEJE
Name of Staff:
Accountancy/Taxation
Profession:
12 January, 1971
Date of Birth:
Education:
School Date Qualification
Ondo State Polytechnic, Owo 2o00 HND Accountancy
Ondo State Polytechnic, Owo 1997 OND Accountancy
Comprehensive High School, Ekiti State 1993 Senior Sec. School Cert.
Army Children Pri. School, Kaduna State 1987 First School Leaving Cert.
Professional qualifications:
Institute of Chartered Accountants of Nigeria (ICAN) - ACA
Employment Record:
Company Period Position
BBC Professionals 1 April 2017 to date Partner
BBC Professionals 2010 to March, 2017 Audit Senior, Supervisor,
Manager
Temidayo, Adebayo & Co 2003 to 2010 Audit Manager
Modecom Solution Limited 2002 to 2003 Account Officer
Proposal for Engagement as Consultants to provide Inventory Management Service to HSL – By BBC Page 31