Example of an External Audit for a Manufacturing Company
Our external audit service and cost reduction initiatives aim to identify hidden problems and implement solutions to increase your manufacturing profitability. Let’s walk through the steps using an example of a furniture manufacturing company.
Step 1: Analysis of the Company’s Current State
We begin with a comprehensive analysis:
Review business processes, financial statements, cost structures, and profitability.
Conduct interviews with the owner, manager, and key employees to identify internal challenges.
- Examine equipment efficiency, materials used, and logistics chains.
Example: It is discovered that production lines experience downtime due to delays in material deliveries, and some raw materials are purchased at inflated prices.
Step 2: Development of an Optimization Strategy
Based on the analysis, we create a plan to address the identified issues:
Optimize the procurement system.
Implement a preventive maintenance schedule for equipment to reduce downtime.
- Recommend staff optimization or task redistribution.
Example: Transitioning to a new timber supplier offers lower costs while maintaining quality.
Step 3: Implementation of Modern Solutions
We help implement solutions to enhance efficiency:
Develop new work standards and train staff.
Configure IT systems to automate accounting, production management, and logistics.
- Propose energy-saving technologies to reduce electricity costs.
Example: A new automated inventory tracking system is introduced, preventing production delays caused by material shortages.
Step 4: Monitoring and Control of Changes
We don’t just provide recommendations; we oversee their implementation:
Monitor the execution of changes.
Regularly provide progress reports.
- Adjust strategies as needed.
Example: In the first three months, material procurement costs are reduced by 15%, and equipment downtime is decreased by 20%.
Step 5: Additional Measures and Outsourcing
If necessary, we can take over critical functions, such as:
Managing procurement.
Organizing warehouse accounting and logistics.
- Running marketing campaigns to boost sales.
Example: We organize advertising at international furniture exhibitions, attracting new clients from the EU.
Results of the Audit
As a result:
Manufacturing costs are reduced by 25%.
Revenue increases through process optimization and higher sales volumes.
- Internal conflicts between the owner and manager are resolved, and a clear management structure is established.
We help not only identify weaknesses but also completely transform your business, making it more efficient and profitable.
Trust the professionals—we will lead your company to success!
