Recommendation
PwC should recommend that the client improve inventory accuracy by tightening store-level controls, investing in integrated systems, and creating accountability around manual interventions.

Key Rationale

• Data shows a strong link between manual processes and inventory mismatch
• Many discrepancies stem from preventable issues (e.g., skipped scanning, inconsistent tracking)
• Fixing controls will reduce write-offs and improve financial accuracy ahead of the next audit

Risks & Mitigations

• Resistance from store managers to adopt new systems
  Mitigation: Involve store leaders in redesign, roll out training, and tie to KPIs
• Cost of system upgrades
  Mitigation: Pilot in high-risk regions first before national rollout
• Data quality may not improve immediately
  Mitigation: Layer in short-term manual checks during transition

Next Steps

1. Roll out barcode scanning policy and log all exceptions
2. Launch pilot of centralized inventory software in 2–3 regions
3. Build dashboard for tracking audit scores and serial number compliance
4. Reassess progress in 3 months and adjust SOPs accordingly