A retailer that has distributed quality products, spare parts and motor accessories for over 95 years, required the support of RGIS. The company’s distribution system ensures customers are provided the right parts at the right time. The regional store network services have over 400 stores supported by over 4000 staff.

REQUIREMENTS
The auto parts retailer needed a solution due to Store Managers having short deliveries and wanted to understand where the problem was originating from, so required RGIS to provide the following:

• Monthly delivery check and pick accuracy audits to be completed
• Checks to be completed at seven different locations
• Blind counts to be completed
• Identify issues that could reduce shrink with variance reporting

SOLUTION
The auto parts retailer partnered with RGIS to complete the delivery pick audit project, and RGIS provided the following:

• RGIS received a full product master file prior to the audit and an electronic manifest for each delivery on the day from the retailer. RGIS loaded all the data into the software to create a working master file with expected pick quantities
• Scheduled a team of two experienced RGIS auditors to count each delivery with a blind count
• Once counted, stock was re-packed back onto pallets
• Variance reports were generated between what had just been counted versus the expected pick quantity
• All discrepancies were checked, and the retailer’s DC Manager was made aware of any mis-picks so that they could be rectified before the delivery was sent off to stores
• RGIS field supervisors backed up the count data and final reports were submitted back to the retailer indicating the pick accuracy of each delivery

RESULTS
The auto parts retailer found by outsourcing the delivery pick audit project to RGIS, the following results were achieved:

• The project is ongoing and is aimed at establishing a base level of the warehouse pick accuracy
• The retailer’s team will then work on implementing strategies to improve this, and each strategy will be analysed with another audit to establish if it has had a positive or negative impact on the pick accuracy
• The delivery pick audits ensure compliance and accuracy by warehouse personnel, which can eliminate sources of stock shrink