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Grupo Comercial Control – Continuous Monitoring

“We have implemented continuous reviews of stock movement in all our department stores and boutiques in Mexico. We can ascertain which merchandise and branches pose a risk to the business objectives in seconds. We have also detected unauthorized expenditure, misstated social security contributions and identified unsold items in all our branches.”

Cesar Morán Lopez, Internal Auditor, Grupo Comercial Control, S.A de CV


Company Profile

Grupo Comercial Control, S.A. de C.V. (GCC) is one of Mexico’s most reliable and well run family businesses, that includes retail stores such as Kenneth Cole, Mango, Del Sol and Woolworth as well as restaurants such as Noreste Grill and Café W. With a presence in more than 50 cities throughout México, the company has 70 stores, 50 boutiques, 12 restaurants and two distribution centers.


With razor thin margins, profitability in the retail sector is attributable to efficient inventory turnover. Merchandise that is missing, not purchased or transferred can lead to significant losses. GCC needed a way to identify damaged, slow, non-moving and unaccounted merchandise to ensure effective turnover and increase revenues, across all stores.

“We had to review the entire universe of transactions and since we were only a few in the department, we spent a lot of time in the review; we are talking about approximately 10 million transactions, within SAP, per month, which were the records of each store,” said Cesar Morán Lopez, Internal Auditor. “If you multiply 10 million records by 12 stores, the results surpassed the capabilities of the staff.”

In addition to monitoring inventory and managing large amounts of data, GCC had a problem with incorrect payments such as paying Social Insurance fees for employees who were no longer with the company and unauthorized expenses in various departments.


The CaseWare solution is able to analyse source data of any volume or variety, to identify errors, problems, issues and trends. The internal audit team is able to use advanced analytics and view the results in various formats such as reports, graphs and pivot.

For continuous monitoring procedures in inventory and accounting, the analytic insights are sent to business process owners using alerts, tasks assignments and workflows. Internal auditors remain independent and the business is responsible for monitoring operations.

By implementing continuous audit reviews of stock movement in all their warehouses, distribution centers, department stores and boutiques, GCC is able to ascertain which merchandise and branches pose a risk to the business objectives within seconds. With improved inventory management, operating expenses has decreased significantly across the group of companies.

GCC was also able to reduce fraud and realize radical savings in preventing the payment of improper Social Insurance fees to ex-employees, initially caused by a slow employee termination process.


With the help of Cynthus, CaseWare’s partner in Mexico, GCC has been able to:

  • Prevent overpayments by 100 percent by continuously monitoring social insurance payments, overtime payroll and unauthorized expenses
  • Reduce operating expenses by 80 percent over a 3 year span – by monitoring inventory to detect damaged or missing merchandise and improve the inventory process
  • Determine root causes for merchandise not selling – by doing inventory analysis (movement and time spent in storage) in Del Sol, Woolworth and Locura stores
  • Discover potential supplier discounts due to delays and ageing of accounts
  • Reconcile account activities in the general ledger


“An analysis that used to take us two days, was done in five minutes,”

Cesar Morán Lopez, Internal Auditor, Grupo Comercial Control, S.A de CV