Background

The client is a successful supermarket business owner who began in the early 90s with one grocery shop that he ran with his brother. Over the course of the following three decades, the client expanded his business to five different locations with an annual turnover of approximately $10 million.

Objective

The client had a strong belief that his vast experience in the supermarket business could have allowed him to expand to more locations, but he felt that he missed out on the opportunity for growth. One of the primary constraints on his aspiration had been his need to personally manage each store, as he had not implemented scalable processes and systems. Therefore, the client approached Proaegis to help redesign his business processes with adequate internal control and workflows, so as to free his bandwidth to focus on expansion.

Scope

The scope of the engagement covered the following aspects:

Put an organization structure in place

Select and implement necessary system

Implement review mechanism for key metrics

Review inventory variance

Perform periodic internal audit

Streamline the operational process to improve metrics

Oversee statutory compliance

Results

Given the wide scope, Proaegis approached the engagement in phases. First, we documented the client's current business processes and structure to understand the existing workflow and identify areas for improvement. Based on discussions with the client, we planned an appropriate business structure and rolled it out, providing a solid foundation for future growth. We addressed the current process gaps and revised the existing business processes to ensure they were efficient and scalable.

In the next phase, we implemented a review mechanism to ensure that the business operations were regularly reviewed and optimized to maximize efficiency and effectiveness. We set up the inventory master and corrected any discrepancies between the system inventory and the physical inventory, ensuring that the business had accurate inventory management.

Subsequently, we put in place a financial internal audit to ensure that the business finances were well managed. We also monitored the compliance with relevant regulations and laws as part of the internal audit.

We implemented a centralized system for managing their inventory, sales, and other metrics and now the client is able to review and monitor them real-time and take timely corrective action. To achieve this, we installed a centralized server that now helps the business better manage its data and facilitate communication between multiple locations.

The changes made had a notable improvement in efficiency of the client's business operations and established a strong foundation for future growth and success. As a result of these improvements, our client has gained greater confidence and control over thei roperational measures and business performance. With more time freed up from managing petty day-to-day matters, the client is now able to focus on more strategic matters. They are currently finalising plans for the next store and have ambitious plans to open additional four stores in the next twelve months.

“Proaegis has been helping us in setting up our processes, designing internal control, providing process improvements, and providing strategic guidance. Being a retail chain of supermarkets, we have relied heavily on their expertise in our process design and have always been impressed with their knowledge and ability to quickly grasp the business intricacies. They have helped us to identify areas for process improvements and implement internal controls that have resulted in cost savings and increased efficiency. Their strategic planning has been instrumental in helping us to grow our business and adapt to changing market conditions. Proaegis is a valuable partner to our business, and I would recommend them to anyone in need of financial advisory services.”

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