Client Situation
Our client is a leading US-based multinational quick service food brand, operating in more than 100 countries with ~20,000 stores worldwide. The company was facing issues in floating cash across all stores in order to meet store level petty expenses. As a policy, the store team was not supposed to use the sales money for any petty expenses. But, as the company grew and the number of stores increased, it started facing delays in replenishment of cash at store level. This led to pulling out of money from sales at store level to meet their expenses which increased reconciliation issues and also the risk of pilferage.
The Challenge
The client asked us to re-engineer its process within 4 weeks to improve petty cash management across all the stores at PAN-India level. The first challenge was that there was no visibility around the expenses at store level. The accountability and responsibility of store managers and area managers was not fixed or assessed. Further, there was no MIS mechanism or framework for analysis of the petty cash expenditure, which was leading to compliance and fraud issues as well.
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