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Identified reasons for losses of an oleochemical and personal care product manufacturer

Engagement: SKP was engaged by a manufacturer of oleochemicals and personal care products to identify the root cause for the contract manufacturing company making losses.


  • Financial analytical review
  • Physical stock verification, compare with logical stock and reconcile the variances
  • Material yield and overhead variances between standard and actual and identify the root cause behind losses
  • Master including bill of material master verification
  • Inventory movement analysis and verification of various cost records 

Value Delivered

  • SKP assisted the company in identifying the reason for losses
  • Provided recommendations to overcome losses
  • Provided input to company to renegotiate the pricing with its contractors to recover losses
  • Provided various input on matters as mentioned below to make processes/accounting more efficient and effective
    • Bill of Material (BOM) configuration;
    • Scrap percentage defined in master;
    • Accounting of Sample sale;
    • Movement types used in booking inventory;
    • Access controls changes.