If You Think About the Local Culture, the Available Pool of Management Talent, and the Organization's McS, Sff Is Quite a Mess. Can It Be Fixed?

If you think about the local culture, the available pool of management talent, and the organization's MCS, SFF is quite a mess. Can it be fixed? How?

Sunshine Fashion is reeling under the impact pf large scale fraudulent activities carried out by it employees. An estimated 5% loss in domestic sales revenue due to employee fraud was recorded. They implemented an EPR system to track their goods but there were still ongoing malpractices within the company that was causing substantial losses. They incurred a 3% loss in good while transportation and it draws our attention to the employees who oversee transportation. They are either extremely careless or plain thieves. I believe Sunshine Fashion needs to hold these employees responsible for losses during transportation and enforce pay-cuts. Conversely, they should introduce rewards for a shipment delivered without losses. Goods damaged during transportation is a legitimate cause for loss but otherwise, the employees should have reasonable explanations to back up losses.

It is seen that Sunshine Fashion has a RFID/ERP system that keeps track of inventory, but the information is manually fed into the system. This encourages fraudulent behavior and they should either implement an automatic alternative or run background checks on employees dealing with the task of inputting data. There is no dearth of people who would want to make an honest living and I believe; Sunshine Fashion should adopt a no-nonsense policy and fire dishonest employees.

Since the company appears to let department stores enforce their own policies when it comes to timeline of sales promotions, it is imperative that they keep track of these individual timelines of all department stores to prevent fraud. This is how Sunshine Fashion will know if managers sell a product at full price and then pocket the balance. No leniency must be shown to managers who are actively damaging the company for their own gains. Even though managers have autonomy over promotions and discount rates, it must be made mandatory for them to have those rates and timings approved by the company first. Measures should be taken to keep track of stock at the local level by employing honest individuals and an efficient computerized system. It is observed that some employees went so far as to change the barcodes on sweaters and this alone cost the company 1.5 million in losses. This is a grave situation and Sunshine needs to immediately fire employees and advertise for new recruits with lucrative pays and bonuses.

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