Detailed sub

Process Sub-Process Key scenarios

process

GatePass entry

Inward Checking

Go live of inventory
Inventory controls - Goods received in
Receiving Godowns

Holding up of
inventory

Storing of goods in
godown

Inward
Dashboard for Min
Max run
 Dashboard for Min
Max run

Inventory controls - Storing Store to racks

in godowns movement

Dashboard for Min

Max run

Dashboard for Min

Max run

Transfer of goods
from godowns to
racks - Day & night

Cold storage goods

Outward

Assigning of
rack/bin number

Storing of non cold

Inventory controls - Storing Racking of goods in
in racks/Binning stores SKUs in racks/bins -
based on
consumption
 Storing of cold
SKUs in racks/bins -
based on
consumption

Tray movement
from one picker to
another

Tray movement for

picking of goods

Tray movement
with the same
picker

Checking of goods
with sales invoice

Check in process

Order fulfilling process

 Check in process

Order fulfilling process

Checking of goods
with challan/
picklist

Modification of
sales invoice

Modification in Modification of
sales picklist
invoices/challans

Modification of
challan

Check out on sales

invoice

Check out on
Check out process
challan/ picklist

Stickering of
barcoded sticker on
bags
 Segregation of Route wise
medicine bags segregation

Picking of medicine
bags by delivery
Dispatch process boy/ salesman

Scanning of
delivery slips +
signing of delivery
sheets by Delivery
boy/salesman
Picking & dispatch
out for delivery

Dispatch process for

vaccines Delivery of vaccines

Dispatch Slip vs
Dispatch slip vs
Physical goods
Physical goods
verification

Trip to be assigned

Inside warehouse
Flash App
 Inside warehouse
Flash App
Invoice barcode
scan

Marking out for

delivery
Register entry by Register entry by
security guard security guard
1. Customer
Goods and invoice available
handover 2. Customer
unavailable

1. No discrepany in
physical verification
Customer verifies of goods and
the goods & invoice
Sale return/ expiry 2. Discrepany in
return collection physical verification
of goods and
invoice
Customer side delivery
1. Cash collection/
Cash/ cheque
Cheque collection
collection from
2. Riopay on-spot
Cash customers payment

Delivery complete
status marking on Delivery
Flash App for the completion
customer

"End Trip" on Flash Trip completion

App

Goods settlement

Cash/ Cheque
Return to warehouse Trip settlement settlement

Trip settlement on
Flash App
Returns

Expiry collection
calendar

Collection process
Receipt of expired of expired goods -
materials
By Delivery boy

Collection process
of expired goods -
By Salesman

Recording of
expired products
and raising of
credit note to the
customer
 Expired products
valuation

Expired products
valuation

Expired products
valuation

Recording and Creation of new

verification of batch
expired goods

Expiry management

Verification of
details entered in
the system for
posting of credit
note

Rejection of
expired products

Settlement of
credit note raised
to customers
 Debit note against
expiry

Raising of debit Segregation of

note , Segregation expired goods for
and dispatch of return it to the
goods to the suppliers
suppliers

Dispatch of expired
goods to suppliers

Settlement of Debit
Settlement of debit
note against
note
expired goods
Other

Audit and Physical Audit and Physical Audit and Physical

verification of goods verification verification

Inventory Valuation Inventory valuation Inventory Valuation

Legal and Legal and

Others
compliance compliance

Others Insurance Insurance

Others Access rights Access rights
 Unit Name

AS IS activities (Steps performed) Muthu

1. GatePass is the first point of entry of goods in the wareshouse (physically and in
system)
2. Packed boxes are counted and bill value is checked against the supplier name
3. GatePass entry is posted in the system
4. Goods are sent to the inward checking area
boxes
2. Proper checking of goods received vs the supplier bill received

1. After physical verification process is completed with no discrepancy, purchase entry is

gets posted in the system.
2. In case of manual process, Purchase executive verifies recorded entry and posts entry
in the system. On posting of purchase invoice, inventory number gets updated in the
system.
3. In case of auto posting of entry in the system, inventory number gets updated post
checking by purchase head

In case of any discrepancy between invoice and physical goods, the purchase entry is not
posted due to which the invoice is put on hold and thus inventory does not get updated
in the system till the time discrepancy is resolved.

Inventory is taken into godowns in such a way i.e. products in full case are stored
company-wise on one side of godown and loose products are stored on other side of
godowns in racks. Racks are allotted to the products based on their consumption.

1. As per the current process, each unit has a defined Minimum rack quantity which
needs to be placed in rack for all SKUs and as soon as quantity of such SKUs goes below
the minimum quantity, it starts reflecting in Min-max dashboard.
2. Min-max is a process for replenishment of SKUs from godowns to store (racks). This
process is followed across all locations and through which godowns in charge get details
of all SKUs which need to be replenished in store.
3. Min-max process reflects the following information on the dashboard:
a. Product name
b. Minimum rack quantity
c. Maximum rack quantity
d. Godowns quantity
e. Rack quantity
f. Quantity required on rack
Columns of min-max quantity is not displayed on screen.
A person from the godown has to click on check storage on min-max basis

1. As per the current process, each unit has a defined Minimum rack quantity which
needs to be placed in rack for all SKUs and as soon as quantity of such SKUs goes below
the minimum quantity, it starts reflecting in Min-max dashboard.
2. Min-max is a process for replenishment of SKUs from godowns to store (racks). This
process is followed across all locations and through which godowns in charge get details
of all SKUs which need to be replenished in store.
3. Min-max process reflects the following information on the dashboard:
a. Product name
b. Minimum rack quantity
c. Maximum rack quantity
d. Godowns quantity
e. Rack quantity
f. Quantity required on rack

Columns of min-max quantity is not displayed on screen.

A person from the godown has to click on check storage on min-max basis

1. If rack quantity goes below minimum rack quantity or zero, then all such SKUs with
required quantity start reflecting on dashboard for transfer from godowns to stores.
Process of transfer is continuous process.
2. In case of night operations - If rack quantity goes below minimum quantity then
transfer is done every 1 to 2 hours from godowns to stores.

1.All such SKUs which need to be stored in cold storage are stored in big cold storage or
refrigerators in godowns.
2. Such SKUs also move from godowns to store as per min-max.

1. All SKUs which are placed in racks/bins/cold storage, store manager/in-charge assigns
a unique rack number in the item master.
2. The SKUs are assigned racks/bins based on their average daily consumption basis
previous 3 months sales data and SKU size.
3. Till the time rack/bin number is not assigned in the item master, location of such SKUs
is reflected as "Unsure" in the system and such SKUs are printed as last line item in sales
invoice. Rack number is assigned to such items on top priority.
4. Rack/bin numbers are pasted on all the racks/bins available in the store.

1. SKUs are classified as fast moving, slow moving and non-moving based on
consumption pattern of SKU by each warehouse
2. Based on consumption pattern, location of each SKU in racks/bins are placed
accordingly so that it becomes easier for picker to pick goods.
3. Fast moving SKUs are generally kept at normal picker chest-level so that these
frequently-picked items are at a comfortable position to pick from.
4. Medium moving SKUs are kept above and below the levels of fast moving SKUs.
5. Slow movivng SKUs are kept at the top-most level in rack.
6. Bottle items are kept in the lower levels in rack.
1.All such SKUs which need to be stored in cold storage are stored in refrigerators in
stores.
2. On receipt of such SKUs, they are moved to refrigerators and racking is done batch
wise based on FEFO (First Expiry First Out) i.e. batch with near expiry in front whereas
batch with long expiry is placed in back of the rack/bin.
3. Based on consumption pattern, location of each SKU in refrigerators is placed
accordingly so that it becomes easier for picker to pick goods.

1. On receipt of sales orders, orders can either convert into challan/picklist or directly to
sales invoice (depending on the operations model implemented by the business) and
start reflecting in dashboard as "ON PRINT". Store in-charge then prints such challan/
picklist/ sales invoices.
2. Store in-charge keeps such printed invoice in the tray which are assigned a place
based on area and cut off time.
3. Picker picks tray and picks goods as per sales invoice and the tray keeps moving from
one picker to another till last SKU is picked up.
4. After completion of picking, tray is moved to checking team(if there are no batch
corrections in the picklist).
5. For picklists which involve batch corrections, the picklist are first modified and then
moved to checking team post Check-In(CI) scan.

1. In Chennai, based on receipt of sales order, the orders are converted to sale
invoice(picklist) by the store in charge and the stage changes to On Print(OP).
2. Picker collects the SI(Store In) scanned picklist for picking up of goods.
3. Picker moves along with the tray for picking up of goods.
4. After completion of picking, tray is moved to checking team post Check-In(CI) (if there
are no batch corrections in the picklist).
5. For picklists which involve batch corrections, the picklist are first modified and then
moved to checking team post Check-In(CI) scan.

1. On receipt of tray with goods along with sales invoice, a person scans invoice and thus
invoice moves to the "CHECK IN" process in the system.
2. Check-in team starts checking of goods i.e. cross verification of invoice details with
physical goods i.e. SKU name, batch number, MRP, quantity, expiry of SKU etc.
3. On completion of checking, checker signs on the invoice and moves the tray to the
packing tram for pacing of goods in poly bag/ carton.
4. Tray with sales invoice and poly bag/ carton moves for check out process.
1. On receipt of tray with goods along with challan/ picklist, a person scans challan/
picklist and thus invoice moves to "CHECK IN" process in the system.
2. Check-in team check goods i.e. cross verification of challan/ picklist details with
physical goods i.e. SKU name, batch number, MRP, quantity, expiry of SKU etc.
3. On completion of checking, checker signs on the challan/ picklist and moves tray to
packing team for packing of goods in polybag/ carton.
4. Tray with challan/ picklist and poly bag/ carton moves for check out process.

1. At the time of Check In stage at Mumbai and VPI, Bangalore, if any discrepancy is
noted, checker holds tray and asks for modification of details in the sales invoice.
2. Post all modifications, modified sales invoice is printed and kept in the tray.
3. Tray with modified sales invoice and poly bag moves for check out process.

1. In case of any discrepancy, checker holds tray and asks for modification of details in
the invoice.
2. After all modifications are done, the sale transaction is posted (if intercompany
transaction is involved) and a final invoice is generated.
3. The picklist is strikes and kept with the modification person and the packed goods with
the final invoice are moved for Check-Out(CO) scan.

1. In case of any discrepancy, checker holds tray and asks for modification of details in
the invoice.
2. Post all modifications, modified challan is printed and kept in the tray.
3. Tray with modified challan and poly bag moves for check out process.
4. If all ok after check in process, one copy of challan is kept with checker.

1. After packing of goods, polybag along with sales invoice moves to the Check out team.
2. Check out team scans barcode on sales invoice and passes it to dispatch team.

1. After packing of goods, polybag along with copy of challan/ picklist is moved to Check
out team.
2. Copy of challan/ picklist is scanned and categorized as check out challans in ERP

1. After check out of challan/ picklist, barcoded sticker is printed and pasted on the
polybag.
2. Barcoded sticker records checker name and count of poly bag.
Medicines polybags are segregated route wise by respective executives in dispatch area
and polybags are kept in the racks area wise, at all locations.

1. Polybags of each customer are kept in area wise racks in dispatch area.
2. Dispatch Slips are printed for the routes which are to be delivered in the upcoming
cutoff
3. Post scan of dispatch slips, medicine bags along with dispatch slips is kept in tray for
salesman to pick up.
4.Sales invoice is printed when delivery guy comes to pick up medicine as per his delivery
slabs
5. Salesman for a particular route picks medicine bags along with dispatch slips from tray
and signs delivery sheet and handovers it to dispatch team
6. Dispatch is done based on slabs defined for each salesman

1. Dispatch team scans delivery slip and handovers it to delivery boys/salesman for
delivery of goods to customers.
2. After scanning of all delivery slips, delivery sheet is generated from the system, which
is get signed by all delivery boy/salesman as an acknowledgement that delivery
boy/salesman collects medicine bags from warehouse for dispatch.
3. Signed delivery sheet is kept at warehouse with dispatch team as an
acknowledgement.

1. Delivery should be done by inhouse delivery boys

1. Cross-verification of physical goods received with the dispatch slip

2. Delivery boy/ salesman packs the goods in his delivery bag along with the dispatch slip
and customer invoices

1. Dispatch/ Flash coordinator assigns the trip generated on Flash to delivery boy/
salesman
2. App login by delivery boy/ salesman
3. Delivery boy/ saleman scans the invoice barcode for all orders

4. The delivery boy/ salesman will mark "Out for Delivery"

1. Security guard makes register entry for the no. of packets, dispatch slip number, time
and delivery person's name

1. Handover the goods and invoice

2. If customer is unavailable, "Mark is not available" in Flash app and proceed to the next
order delivery

1. If no discrepancy, delivery boy/ salesman will collect the acknowledgement for the
order delivery
2. If any discrepancy in physical verification of goods and invoice, the delivery boy/
salesman marks the discrepancy on the acknowledgement
3. The delivery boy/ salesman completes the delivery for other goods without
discrepancy
4. For detailed process, refer the Sale Return and Expiry Return module in SOP

1. Feed the amount collected from customer on Flash App

1. Delivery boy/ salesman marks the status as "Delivery Complete" in Flash App after the
completion of the above steps
2. The delivery boy/ salesman then travels to next customer's location and repeats the
same process

1. After the completion of all deliveries the delivery boy/ salesman marks the "End Trip"
status on Flash App

1. Delivery boy/ salesman handsover the goods to the Sales Return team
2. Sales Return person scans the returned packets

1. Delivery boy/ salesman handsover the collected cash/ cheque to the Collection team
2. Collection person feeds the collected amount on Flash Dashboard

1. Final trip settlement is done by Collection person on Flash Dashboard

1.Calendar for picking of expired goods vary for each location. Each unit has designed
their own calendar for collection of expired products from their customers and for
returning it to the supplier.
2. For Mumbai & Delhi location, warehouse collects expired products from customers
between 5th to 15th of every alternate month.
3. For Bangalore, warehouse collects expired products from customers between 1st to
8th of every alternate month.
4. For Chennai, warehouse collects expired products from customers between 21st to
30th of every month.
5. For collection of expired products from the customers, collection person varies for
each location.

1. In Mumbai, first customers inform salesman about return of expired products.

2. On receipt of intimation about return of expired products from customers, salesman
visit to customers location and verify goods i.e. return note vs physical goods (quantity,
brand name, SKU name etc.) and sign return note of expired products.
3. Post verification of salesman, delivery boy visits to customers location and collects
expired goods from the respective customers location and bring it to the warehouse.

1.In Bangalore, first customers inform to salesmen about return of expired products.
2. On receipt of intimation about return of expired products from customers, salesmen
visit the customers location and verify goods i.e. return note vs physical goods (quantity,
brand name, SKU name etc.). Post verification, salesman enters details in a defined form
for collection of expired products and get it signed from the customers as
acknowledgment of receipt of goods. And bring it to the warehouse.
3. On receipt of expired products in the warehouse, salesman needs to do entry in the
manual register i.e. salesman name, customer code, amount of expired products and
number of packets.

1. On receipt on expired goods from the customers, expiry goods department records
details of goods in the system along with checking of goods and credit notes are raised in
the system.
2. Checking includes SKU name, company/brand name, quantity, batch number etc.
3. Wherever scheme is attached to a particular batch of SKU, it is being deducted from
the discounted value credited to the customers.
In Mumbai, discounted value is calculated as 70% of MRP and on discounted value,
credit note against expired goods is raised to the customers.

In Bangalore, discounted value is calculated as 65% of MRP and on discounted value,

credit note against expired goods is raised to the customers.

Other locations, discounted value is calculated as 60% of MRP and on discounted value,
credit note against expired goods is raised to the customers.

1. At the time of entry in the system, if executive finds expired goods of different batch,
he/she creates a new batch and enters MRP which is mentioned on the product.
2. Post creation of a new batch, executive enters details of expired goods in the system
and credit is raised to the customers

1. In Bangalore, post recording of expired goods details in the system, proof credit note
is generated from the system and it is verified by senior executive of expired goods
department i.e. SKU name, quantity, discounted value etc. and if everything is found
correct, senior executive posts credit note in the system.
2. In case if he/she finds any discrepancy in proof credit note, the same is modified and
credit note is posted in the system.

In case if expiry team finds any expired goods which was not sold by the unit, then team
rejects such products and keeps it separately along with list of such rejected SKUs in
polybag and whenever salesman/delivery boy comes to the unit, they pick up rejected
items and return it back to the customers.

Across all locations, credit note raised to the customers get settled within period of 7 to
15 days against sales invoice.
Each unit raises debit notes to suppliers against expired goods which will be returned by
them to the suppliers

Across all locations after raising of debit note, expired products are segregated supplier
wise by expiry team and all such goods are kept in tray/racks/boxes assigned to each
supplier.

1. Each unit dispatches expired goods along with debit note.

2. In Bangalore, goods are sent either through courier/hand delivery depending on
location of supplier. In case of hand delivery, acknowledgement was taken from the
customers on handover of expired goods.
3. In Mumbai, goods are sent along with transport partner of supplier who comes to
warehouse for delivery of products.

1. On receipt of debit note and expired goods by suppliers, suppliers take their own time
for checking and verification of goods. Post all verification, supplier raise credit note to
the warehouse to settle against debit note.
2. Average time taken by suppliers to settle debit note is between 30 to 60 days.
Settlement period varies from supplier to supplier.
3. Supplier itself adjusts credit note against purchase invoice raised by them and thus
based on that invoice, warehouse team needs to verify the credit note and enter details
in the system and thus settle debit note of expired goods.
4. If any discrepancy is found, the warehouse team intimates the supplier regarding the
same for another credit note (for eligible items).
5. After settlement, each warehouse make payment of net amount to the suppliers.
1. For performing physical verification periodically i.e. cycle count basis, Store-in-
charge/Finance Head has specific identified specific SKUs i.e. high value SKUs/fast
moving SKUs/ average moving and Slow moving SKUs.
2. Units Store team conducts physical verification of specific SKUs as planned.
3. In case of difference in stock between system vs physical, the same is informed to
store-in-charge and Finance Head for their approval.
4. Based on approval, adjustment entry is posted in the system.

1. Location wise inventory valuation is performed by Unit Finance team.

2. Inventory adjustment in books is performed by Unit Finance team.
3. Inventory in books is getting valued at Effective Purchase rate. Formula is defined in
ERP and thus system auto calculates value at the end of each month.
4. HO Finance team does not create separate provision for inventory adjustment

Tracker for food and drug licenses is maintained capturing details of validity period.

Insurance policies are maintained with Insurance team. As in January 2020, no pending
insurance claims.
1. During new user creation, access rights is defined in the system.
2. Access rights of all users need to revied monthly
3. ERP access passwords of all users need to be changed frequently
4. ID of left employees to be revoked.
5. Rights to be assigned to any ID only after mail confirmation from units head/ highest
authority.
 Risk (What Can Go Wrong) Critical/Non-
critical

Goods received but

- not recorded Critical
- not recorded correctly
Inward checking team not highlighting
discrepancy in the physical supplier Critical
bill copy

Goods received but

- not recorded Critical
- not recorded correctly

Delay in picking goods due to non -

storing of goods as per their Non-critical
consumption pattern

1. Delay due to absence of

Non-critical
replenishment cycle for night shift
2. Delay in replenishment, may impact
Non-critical
sales order processing.

1. Delay in transfer of goods, impacts

sales order processing.
2. Goods sent by godown but not Critical
received by store
3. Incorrect item, batch, quantity sent
by godown

1. Misplacing of goods in absence of

assigning of bin/rack number
2. Loss of sales due to misplacing of
Non-critical
goods from the store.
3. Delay in processing of sales invoice
due to delay in picking of goods

1. Picking of goods not as per FEFO due

to incorrect racking of goods
2. Delay in processing of sales invoice
due to incorrect racking of goods
3. Misutilisation i.e. theft/loss of high
value items or cold storage items in
absence of outward register for Critical
moving out of goods.
4. Breakage of bottle items due to
placement at higher levels in rack
5. Discomfort to pickers due to
placement of fast moving items at
higher levels in rack
 2. Delay in processing of sales invoice
due to incorrect racking of goods
3. Misutilisation i.e. theft/loss of high
value items or cold storage items in
absence of outward register for Critical
moving out of goods.
4. Breakage of bottle items due to
placement at higher levels in rack
5. Discomfort to pickers due to
placement of fast moving items at
higher levels in rack

1. Risk of theft / mis-utilisation of

goods by Store team
2. Picking of incorrect quantity of
goods i.e. short/excess or incorrect
batch number
3. Breakage or damage of goods
Non-critical
4. Delay in picking leads to delay in
processing of sales invoice
5. Misplacement of trays leading to
violation of cutoffs
6. Duplicate sale invoice/ challan/
picklist leading to picking the same
SKUs twice/ multiple times

1. Dispatching of incorrect product or

short/excess quantity/ goods with
incorrect batch number increases
customer dissatisfaction and sales Critical
return
2. Damage of goods due to inadequate
packing protection
1. Dispatching of incorrect product or
short/excess quantity/ goods with
incorrect batch number increases
customer dissatisfaction and sales Critical
return
2. Damage of goods due to inadequate
packing protection

1. Double picking due to re-printed

modified invoice Critical
2. Too much modification will result in
decreased efficiency

1. Unauthorised dispatch of goods

2. Delay in check out may cause delay
in dispatch of goods and thus it could
Non-critical
lead customer dissatisfaction.
3. Handing over the goods to Dispatch
without CO scan
1. Damage/breakage while
segregation.
Non-critical
2. Misplacement of medicine bags
from racks

1. Misplacement or theft of medicine

bags
2. Damage/breakage of medicine by Non-critical
delivery boys/salesman
3. Unauthorised dispatch of goods

1. Misutilisation/theft of goods Non-critical

2.Customer dissatisfaction

1. Incorrect or no verification
2. Incorrect stuffing of goods in bag by
delivery boy/ salesman will lead to Critical
time loss due to full bag search at
customer's place

1. Trip not assigned to the delivery

boy/ salesman
Non-critical
2. Incorrect trip assigned to delivery
boy
1. Single Login Id used by multiple
delivery boy/ salesman.
2. Delivery boy/ salesman not receiving
OTP.
Non-critical
3. Barcode print is too light resulting
failure while scanning it
4. Scanning wrong Invoice and not able
to proceed further

1. Delivery boy/ salesman forgets to

Non-critical
mark out for delivery
1. Incorrect or no register entry by
Non-critical
security guard
1. Handover wrong packet to
customer.
Critical
2. Wrong information marked in Flash
App

1. Delivery boy/ Salesman not taking

Critical
customer acknowledgement

1. Customer returns expiry equivalent Critical

instead of cash

1. Delivery boys / salesman forgot to

mark delivery complete and upload Non-critical
acknowlegment slip in Flash

1. Without verifying all delivery status,

delivery boy/salesman marks "End Non-critical
Trip" on Flash App
1. Delivery boys / salesman lost Sales
Critical
Return packet during transit

1. Delivery boys / salesman lost cash/ Critical

cheque during transit

1. Trip settled by the collection person

without cross-checking with the Critical
delivery boy/ salesman
1. Supplier will not accept expired
goods after defined time period and Non-critical
thus unit may have financial loss

1. Incorrect collection of expired goods

as goods details are not mentioned in a
defined format.
2. Unauthorised collection of expired
goods by delivery boy
3. Short/excess collection of expired Critical
goods i.e. without counting of goods
4. Accepting expired medicines which
were not sold by the unit and without
acknowledgement from the customers
5. Damage in transit for expired goods

1. Incorrect collection of expired goods

as goods details are not mentioned in a
defined format.
2. Short/excess collection of expired
goods i.e. without counting of goods Non-critical
3. Accepting expired medicines which
were not sold by the unit and without
acknowledgement from the customers
4. Damage in transit for expired goods

1. Unauthorised issue of expired goods

credit notes
2. Inappropriate approvals, potential
revenue loss to the company if the
Non-critical
returns are incorrect and no clarity as
to what is accepted as expired goods
3. Incorrect recording of expired goods
i.e. quantity of goods
1. Potential financial loss to the
company if expiry team forgets to
Critical
adjust scheme or adjust incorrect
scheme

1. Potential financial loss by adjusting

scheme to new batch without verifying
with approval of senior executive.
Critical
2. Creation of a new batch with
incorrect MRP resulting in passing of
excess credit to the customers

1. Posting of credit note without

verifying proof of credit note results in
passing of excess credit to the
customers
Critical
2. Unauthorised issue of credit note to
the customers in absence of
acknowledgement from senior
executive

1. Units will be unable to claim from

salesman/delivery boy if there is any
loss of goods due to theft/damage etc.
in absence of documentation.
Non-critical
2. Customers can deny of accepting
rejected expired goods in absence of
acknowledgement from customers at
the time of receiving of expired goods

1. Delay is settlement of credit note

increases customer dissatisfaction.
2. Settlement of credit note without Critical
adjustment against outstanding
balance
1. Return of expired goods to the
supplier without raising debit note and Critical
thus unit may incur financial loss

1. Mismatch in quantity i.e. physical vs

system quantity.
2. Risk of transferring expired goods of Non-critical
a particular company to a different
company

1. Unauthorised dispatch of goods in

absence of documentation and
authorisation
2. Suppliers can deny settlement of
credit note against expired goods in
Critical
absence of acknowledgement from
suppliers at the time of dispatch of
expired goods and in case of no
intimation to the supplier about
dispatch of expired goods

1. Delay in settlement, may impact

working capital.
2. In absence of tracking of settlement
of debit note, unit may incur financial
Critical
loss
3. Supplier can delay passing of credit
to the unit, in absence of proper follow
up
1. Physical verification not conducted
as per the defined procedure and
policy
2. Inefficient and inaccurate audit by
untrained staff.
3. Wrong adjustment entries in
system. Critical
4. Adjustment entries in system by
unauthorised people.
5. Expired/near to
expiry/damaged/banned stock not
timely identified
6. Risk of theft in warehouse

1. Discrepancies between the book

stock and actual physical stock
resulting in incorrect inventory
valuation.
2. Incorrect or incomplete disclosure of Critical
inventory value in financial statements
3. Inventory adjustment are not
correctly identified and completely
accounted

1. Lack of timely renewal of licenses

Critical
2. Potential legal non compliance

1. Inadequate coverage resulting in

financial loss.
2.Claims are not lodged in timely
manner or not recovered.
3. Inaccurate calculation and recording Critical
of insurance claims.
4. Inventory is not adequately
safeguarded.
5. Non timely renewal for insurance
1. Misutilisation of access rights or
unauthorised usage of access rights.
2. Unauthorised person performing
extremely critical tasks Critical
3. People using other person's ID
4. Rights assigned to unauthorised
person.
 Person(s) in charge of
Control Description ( how to control)
existing control

1. Maintain a security register to track instances of goods entering the

warehouse Purchase analytics team
2. Track the gatepass against the expected deliveries for the day (google sheet & Unit Ops manager
available with central purchase team)
1. Maintain a Google Sheet tracker for tracking the all the stakeholders from
Unit Ops manager
Unloading of goods to Purchase Entry

1. Purchase invoice entry is posted only after confirmation of physical checking

of goods.
2. Maker checker concept is in place, to check and post purchase entries in the
system. Senior executive checks SKU name, quantity, batch no., MRP,
scheme/discount etc.
3. Operations team tracks and monitors delay in recording of purchase invoice Purchase analytics team
& Unit Purchase
after gate pass creation. Delay more than 24 hours is highlighted in the
manager
dashboard.
4. Mail sent to the supplier for confirmation and requested to send revised
invoice.
5. On receipt of revised invoice, purchase invoice is recorded and posted in the
system after approval of Purchase head

1. Before racking of goods in godown, goods are physically checked and verified.
2. Goods are racked on their dedicated racks as decided by the godown in-
Godown in-charge
charge.

1. Replenishment cycle i.e. (Min-max) is run as per time decided by each

respective unit and covers all the SKU placed in the store.
2. Minimum quantity is set for all the SKUs placed in store and thus system auto Unit Ops manager/Store
in charge
generates the replenished quantity
3. Daily min max is run at least twice across to prevent delay in replenishment
1. Replenishment cycle i.e. (Min-max) is run as per time decided by each
respective unit and covers all the SKU placed in the store.
Unit Ops manager/Store
2. Minimum quantity is set for all the SKUs placed in store and thus system auto
in charge
generates the replenished quantity
3. Daily min max is run at least twice across to prevent delay in replenishment

Central Operations team monitors and circulates report with all units at end of
the day. Following reports are shared:
1. List of SKUs for which minimum replenish quantity is not defined
2. List of SKUs for which quantity goes below minimum quantity defined Unit Ops manager &
3. Some units maintain outward register for moving out of high value/cold Store in charge
storage goods from godown to store as a additional layer of theft prevention.
4. For incorrect items sent by godown, highlight the issue to the transfer team
and hand over the incorrect items to the transfer team

1. On receipt of new SKU in store, Store in-charge assigns Bin/Rack number in

the system
2. Physical verification was performed for top 1000 SKUs as well as high value
items across all the units periodically to identify any loss of inventory/shrinkage. Store in charge
3. Physical verification includes all such SKUs which has maximum loss of sales.
4. Reason of short inventory is identified and both short/excess inventory is
adjusted in books of accounts monthly

1. Goods are placed in store on their assigned rack number as per FEFO
2. Physical verification was performed for top 1000 SKUs as well as high value
items across all the units periodically to identify any loss of inventory/shrinkage.
3. Physical verification includes all such SKUs which has maximum loss of sales.
Store in charge
4. Reason of short inventory is identified and both short/excess inventory is
adjusted in books of accounts monthly
5. For items kept at incorrect levels in rack, the item locations are changed
physically and in system
 1. Goods are placed in store on their assigned rack number as per FEFO
2. Physical verification was performed for top 1000 SKUs as well as high value
items across all the units periodically to identify any loss of inventory/shrinkage.
3. Physical verification includes all such SKUs which has maximum loss of sales.
Store in charge
4. Reason of short inventory is identified and both short/excess inventory is
adjusted in books of accounts monthly
5. For items kept at incorrect levels in rack, the item locations are changed
physically and in system

1. Operations analytics team monitors store movement of invoice i.e. time taken
from Store in to store out
2. Dashboard also highlights the number of invoice where time taken from store
in to store out was more than 2 hours
3. Picking dashboard highlights the following components :
a. Order Summary
b. Hourly order summary
c. Pending orders
d. Rack summary
e. Error summary
f. Item wise error summary
g. Picker summary
h. Picker hourly
I. Order funnel Store in-charge/ Unit
4. CCTV monitoring of Store Ops manager
5. At the end of each shift, Security guards checks every employee and their
belongings before they leave office premises
6. Google Sheet tracker to be maintained to track short/ excess issues and the
picker associated with this error.
7. Precaution to be taken for proper stacking of trays over one another to avoid
damage/ breakage
8. Color coding of sale invoice/ challan/ picklist to better track them for their
respective cutoffs
9. Tray numbering to be done and the same number needs to be entered in ERP
and on the sale invoice/ challan/ picklist to track the right order with the right
tray
10. System rights to re-print a sale invoice/ challan/ picklist should be properly
defined and should be assigned only to a specific person to avoid duplicacy

1. Control at the time of check-In stage i.e. with respect to quantity/batch

mismatch/MRP mismatch/Shortage of goods
2. Mandatory for checker to mention checker code/name on Sales
invoice/challan/picklist. Checking & packing
3. Use CCTV assistance to back-track any mishap in the past team
4. For breakage control, use bubble wrap for packing of bottle items and loose
strips
5. Maintain a Google Sheet tracker for tracking customer complaints
1. Control at the time of check-In stage i.e. with respect to quantity/batch
mismatch/MRP mismatch/Shortage of goods
2. Mandatory for checker to mention checker code/name on Sales
invoice/challan/picklist. Checking & packing
3. Use CCTV assistance to back-track any mishap in the past team
4. For breakage control, use bubble wrap for packing of bottle items and loose
strips
5. Maintain a Google Sheet tracker for tracking customer complaints

1. Original invoices to be destroyed / filed to avoid double picking

1. Sales analytics team monitors modification in sales invoice and shares report Sales analytics team &
with unit sales head/unit head Unit Sales head and Unit
2. Sales analytics team monitors sales invoice modification after 48 hours of
head
dispatch of goods and share report with sales head and unit head
3. Unit sales head/Unit head reviews modification report as and when required

1. Operations analytics monitors check out process and highlights the following :
a. Order Summary
b. Hourly order summary Operations analytics
c. Pending orders
team & Unit ops
d. Checker summary
e. Checker hourly manager
2. For handover of goods to dispatch without CO scan, the CO scan must be
done only after the barcoded sticker is stuck on the bag and through a single
point of contact between checking and dispatch
1. Dispatch team members keep medicine bags after verifying invoice
2. CCTV monitoring of goods
Unit sales head
3. Proper handling of goods to avoid damage/ breakage
4. Proper route/ area name stickering of dispatch racks to avoid misplacement

1. Operations analytics team monitors time taken from check out to dispatch of
products
2. Operation analytics team tracks number of invoice not dispatched on the
same day of sales order receipt. Operation analytics
3. In case where third party delivery boys are picking goods, third party is team, Unit opps
responsible in case of any loss/damage/breakage and will be recovered from manager head &
them. Delivery team
4. Maintain a physical register with a dedicated security personnel at the
Dispatch Out (DO) point to track the dispatch slip numbers and number of
medicine bags exiting the warehouse

1. Delivery gets completed only on receipt of acknowledged delivery slip from

the customer.
2. Maintain a physical register with a dedicated security personnel at the Delivery boy/Sales unit
Dispatch Out (DO) point to track the dispatch slip numbers and number of head
medicine bags exiting the warehouse

1. Make sure Dispatch Slip verification is not by-passed by the delivery boy/
salesman Delivery in-charge (Swifto supervisor)
2. Stuffing of goods in bag to be done as per trip sequence

1. Both Flash coordinator and delivery boy should make sure that no deliveries
are made without trip assigned on Flash
Delivery in-charge (Swifto supervisor)
2. Flash coordinator should take care to assign the trip to the right delivery boy
by checking the dispatch slip number and delivery boy's name on ERP
1. Supervisor should take care that delivery boys / salesman are not doing
multiple login through their Id
2. Delivery boy / Salesman press"Resend OTP" feature in App and clear cache
from mobilie settings. Delivery boy / Salesman
3. Frequency to change cartridge should be fixed by IT team
4. Supervisor need to check and assign correct Invoice to delivery boy /
salesman

1. Delivery boy/ salesman should remember to mark "Out for Delivery"

Delivery boy / Salesman

1. Daily cross-checking of the security guard register by the dispatch in-charge

Security guard & Dispatch in-charge

1. Check the customer name on invoice while making the delivery.

Delivery boy / Salesman
2. Ensure Delivery boy / salesman mark delivery status properly in APP

1. It is the delivery boy/ salesman's responsibility to collect the delivery

Delivery boy/ Salesman
acknowledgement

1. Delivery boy/ salesman should hand over the returned goods to the expiry
department Delivery boy / Salesman

1. Delivery boy/ salesman must make sure to mark "Delivery complete" for that
particular delivery
Delivery boy / Salesman
2. Ensure that delivery boys upload acknowledgement slip in App at at time of
delivery

Delivery boy/ Salesman cross check and mark end trip in App Delivery boy / Salesman

1. Sales Return goods are delivery boy/ salesman's responsibility during transit
Sales Return team & Delivery boy/ salesman

1. Cash/ Cheque is delivery boy/ salesman's responsibility during transit Collection team & Delivery boy/ salesman

1. The collection person must make the final trip settlement only after cross-chek
Collection team & Delivery boy/ salesman
1. Unit strictly follow expiry calendar for collection of expired goods from Expiry team/ Unit ops
customers manager

1. Delivery boy picks expired goods only after confirmed by sales man.
2. Expired goods form is signed by the customer as acknowledgement.
3. Delivery boy reconciles physical goods with the note. Salesman/ delivery boy
4. Expired goods team enter details in manual register and then check whether
SKU is same as what sold by the unit.

1. Expired goods form is signed by the customer as acknowledgement.

2. Salesman reconciles physical goods with the note. Salesman
3. Expired goods team enter details in manual register and then checks whether
SKU is same as what sold by the unit or not.

1. Expired goods are recorded in the system once they are checked and
confirmed
2. All rejected goods are returned back to the customers Expiry team
3. Details entered by the accounts team is checked by their senior and then
credit notes are raised
1. Credit note is posted only after verification of all key information i.e.
Expiry team
schemes/discounts etc. to avoid any monetary loss

1. Credit note is posted only after verification of all key information i.e.
Expiry team
schemes/discounts etc. to avoid any monetary loss

1. Credit note is posted only after verification of all key information i.e.
Expiry team
schemes/discounts etc. to avoid any monetary loss

1.Salesman/delivery boy are responsible or their contracted agency is

responsible in case of loss of rejected material.
2. Maintain physical acknowledgement form/ register when handing over goods
to salesman/ delivery boy. Expiry team
3. Save the acknowledgement recived from customer at the time of receiving
expired goods. This will be needed when handing back the rejected expired
goods.

1. Customers settle by raising debit note to the units and adjust that amount Accounts Team/ Unit
against sales invoice ops manager
 Accounts Team/ Unit
1. Expired goods move out of units premised only after verification of debit note
ops manager

1. Tray/boxes are tagged with company name and are kept in their dedicated
Expiry team
racks

1. Acknowledgement is taken from the supplier or their representative.

Expiry team/ Dispatch
2. Maintain physical acknowledgement form/ register when handing over goods
team
to salesman/ delivery boy for return to supplier.

1. Suppliers raise credit note and the same is adjusted by the supplier in the
invoice.
2. Unit Finance team knocks off debit note against credit note received from the Accounts Team/ Unit
supplier ops manager
3. Tracking is there in MIS for pending CNs and follow up is done to close that
ASAP
1. Permanent and dedicated audit/ maintanence team to maintain inventory
hygiene.
2. Audit to be done only by the dedicated team. In case of new people
introduced to audit process, proper training needs to be conducted.
3. Physical printout of the audit sheet needs to be maintained and legible
Unit Finance
corrections to be done in these printouts for clarity during adjustment entries.
Head/Store-in-charge/
4. Adjustment entries to be posted only after approval from the unit finance
Unit ops manager
head, ops head and other important stakeholders.
5. Expired/ near to expiry/ damaged/ banned stock need to be removed from
racks (fresh stock) and to be handed over to the breakage/ expiry department
after making proof entry of the same.
6. High security surveillance of the audit personnel.

1. Monthly reconciliation of book stock vs actual stock

HO Finance team & Unit
2. Inventory valuation reviewed and approved by HO Finance team monthly
Finance team
(Maker - Unit Finance , Checker - HO Finance)

1. Manual tracker for FDA is maintained capturing details of validity period

location wise
Central Legal team
2. Location wise checklist ins maintained and follow ups are done by legal team
for any non compliances

1. The following insurance has been taken

a - Fire insurance for Thea Warehouses
b - Burglary policy Central Admin team
c - Delivery boy accidental insurance
1. During new user creation, access rights is defined.
2. Assign rights to a user only after mail confirmation from unit head/ highest
authority.
3. Change ERP access password frequently
4. Strict action to be taken against person using other person's ID Local IT team
5. Review the rights of all users monthly
6. Revoke the IDs of left employees
7. Assign only the rights needed to daily use. Refrain from assigning rights which
would not be used frequently.
 Type of control Control Frequency

Annual/ Bi annual/ Quarterly/ Monthly/

Key documents/ Control Operational/
Fortnightly/ Weekly/ Daily/ Ongoing/ As
evidence Financial/ Statutory
needed

Supplier bill & Gatepass

Operational/ Financial Daily
entry

Google Sheet Operational/ Financial Daily

Purchase invoice &

Operational/ Financial Daily
Revised purchase invoice

- Operational Daily

- Operational Daily
 - Operational Daily

Godown to Store Transfer

notes, Register entry & Operational Daily
Operations dashboard

Inventory report &

Operational/ Financial Ongoing
Physical verification report

Inventory report &

Physical verification report Operational/ Financial
Monthly/Quarterly/As needed
 Inventory report &
Operational/ Financial Monthly/Quarterly/As needed
Physical verification report

Operations analytics
dashboard & Operational Daily
CCTV recordings

Sales invoice/pick list/

challans & CCTV Operational/ Financial Daily
recordings
Sales invoice/pick list/
challans & CCTV Operational/ Financial Daily
recordings

Sales analytics report & Financial Daily/weekly

modification report

Operations analytics
Operational Daily
dashboard
 delivery slip Operational Ongoing

Operations analytics
Operational Daily
dashboard

Delivery slip Operational Daily

Dispatch slip Operational/ Financial Daily

Dispatch slip & Flash App Operational Daily

 Flash App Operational Daily

Flash App Operational Daily

Register Operational Daily

Flash App Operational/ Financial Daily

Delivery Acknowledgement Operational Daily

Flash App Operational/ Financial Daily

Flash App Operational Daily

Flash App Operational Daily

Flash App Operational Daily

Flash App Operational Daily

Flash App Operational Daily

 - Operational Fortnightly

Expired goods
acknowledgment note Operational Fortnightly
from customer

Expired goods
acknowledgment note Operational Fortnightly
from customer

Credit note Operational/ Financial Fortnightly

 Credit note Operational/ Financial Fortnightly

- Operational Fortnightly

- Operational Fortnightly

Rejection note & Acknowledgement noteOperational Fortnightly

Credit note Financial As needed

 Debit note Financial Fortnightly

List of expired goods

Operational As needed
return

List of expired goods

Operational Fortnightly
return & Debit note

Debit note/Credit note

from supplier & Purchase Financial As needed
invoice
Audit sheets & Adjustment
Operational/ Financial Ongoing/As needed
entries

Valuation report
Operational/Financial Monthly
Stock Adjustment ledger

Tracker of licences Statutory Monthly

Tracker of insurance Operational/Statutory Half-yearly/Annually

Access rights report Operational Monthly
 Nature of the Control

Manual/ Automated /
IT system used
IT Dependent

Manual/ IT dependent ERP & Google Sheet

Manual/ IT dependent Google Sheet

Manual/ IT dependent ERP & Tableau

Manual -

Automated ERP
 Automated ERP

IT dependent ERP & Tableau

IT dependent ERP

Manual/ IT dependent ERP

Manual/ IT dependent ERP

IT dependent/ Manual ERP & Tableau

Manual/ IT dependent ERP & Google Sheet

Manual/ IT dependent ERP & Google Sheet

IT dependent ERP & Tableau

IT dependent ERP & Tableau

 Manual -

IT dependent ERP & Tableau

Manual -

Manual/ IT Dependent ERP

IT Dependent ERP & Flash App

IT Dependent Flash App

IT Dependent Flash App

Manual -

IT Dependent Flash App

Manual -

IT Dependent Flash App

IT Dependent Flash App

IT Dependent Flash App

IT Dependent Flash App

IT Dependent Flash App

IT Dependent Flash App

 Manual -

Manual -

Manual -

IT Dependent ERP
IT Dependent ERP

IT Dependent ERP

IT Dependent ERP

IT Dependent ERP

IT Dependent ERP
IT Dependent ERP

Manual -

Manual -

IT Dependent ERP
Manual/ IT dependent ERP

Automated ERP

Manual -

Manual -
IT Dependent ERP
Supplier Cipl/Abbott/Sun Pharma
Distributor Us
Customer Retailer/Chemist shop/Hospitals
Godown Inward

Godown to Display area Godown to Store

Display Outward

Returns
Crocin

Procure to Pay Cycle

PO by Purchsae team

Company processes the order and sends the goods to my warehouse

We do GRN at our warehouse entry

Goods are checked by our inward team for correctness of receivd goods

Purchase Entry: Entry in software

Physically placement in the godown

Order to Cash Cycle

Order placement by customer

Order printed on paper and given to 'Picker'

Picker goes to item's location and picks the item. Then picker picks other items in the printed list

Picker gives all pickd items to QA team

QA team checks all items vs printed list

QA team passes the picked items and passes the goods to dispatch team

Dispatch team arranges the items for delivery pickup (by bikers / van)

Biker/Van delivers the order to customer

Previous month Sale Purchase Order
1000 1500

ERP transaction Risks

trn 1