CURRENT ISSUES
Inernal discussions on whether to extend
its brand into other categories or continue
with its existing product lines for a period
of time.
Some members of the management feel
that the back office support still has a
long way
to go in terms of aligning with the overall
company strategy.
The sales director believes that the
Company
must continuously adapt to the ever-
changing business environment.
The operations Director is extremely
concerned by the poor
quality of management information,
specifically on inventory levels and
demand forecasting.
The Chief Information Officer believes
that IT is not a priority of the
management and their
potential contributions to the Company
are not valued.
The Finance department wishes to
improve operating
effectiveness, efficiency and flexibility
within her department to cope with the
disruptive trends and growing business
needs of the company.
ROOT CAUSES
Growth of the luxury chocolate market in
the Philippines.
Promising sales and market share despite
being new to the market.
Expansion of company operations
throughout the country in order to cope
with the increasing sales volume and
growing demands.
With the continuous growth of the
Company, the department is facing
challenges in doing their analyses and
producing value-adding reports for
management.
Inventory levels at
certain parts of the supply chain end up
being too high or too low due to
miscalculation of forecasts that are based
on data generated from the inventory
system.
There is a perception that Glorious’ IT
has been lagging vis-à-vis other
companies when it comes to coping with
the
business changes that have taken place in
the past years.Majority of costs incurred
are spent on operational and maintenance
activity. The
department is seen as reactive to business
requests and problems rather than
proactive.
- Inventory reports require many
reconciliations and further cleansing as
OraCulo is not fully utilized and is not
integrated with SAPi.
-For sales from other distribution
channels, Glorious issues
paper-based sales invoices and these are
processed manually.
-The General Accounting and Reporting
team spends majority of their time
compiling, reviewing and correcting data
during the close process which leaves
lesser time to perform analysis. Most of
the journal entries are prepared
manually.
-Account reconciliations and bank
reconciliations are manually prepared.
There are no formal cut-offs and
adjustment
thresholdsin place.There are no formal
debriefs conducted to discuss the status of
the period-end close. These result
to delayed closing and late submission of
management and regulatory
requirements.
-Reporting team’s effort is concentrated
in the production and completion of
standard reports which limits their time to
produce other relevant and value-adding
analyses that would be more
useful to the stakeholders.
-The Planning and Budgeting process is
regarded by most departments as a
routine financial ritual. It is spreadsheet
based and time-consuming.