A large manufacturing company producing medical supplies has appointed you as their senior Management Accountant. The firm operates a factory in India and another in the United Kingdom. Each factory produces a different product range, with the Indian factory producing mass products such as face masks, syringes, and needles, whilst the UK factory produces bespoke medical equipment such as MRI machines.
There are two routes to market: sales to distributors as well as sales directly to the end customer. As part of your role, you are expected to review the current practices of the business and advice on areas for short, medium, and long-term improvements. Based on the above, you make the following observations: