Centers
81
Saved
$97,000
Year
1
A motor parts specialist operates as an agent on behalf of a major car manufacturer with 81 centers, and are responsible for the supply of genuine parts.
THE CHALLENGE
Due to concerns regarding the growing amount inventory write-offs within all motor parts centers, the major car manufacturer set about establishing policies and procedures that would make each center responsible for the inventory and shrinkage levels, whilst introducing the mechanism to be able to audit the inventory accurately.
RGIS were required to provide the following:
- Improve the location of all products to deliver an accuracy rate at audit of 95%
- Reduce the total write-offs by 50%
- Conduct an independant audit in all centers within a calendar year
Sectors
Why RGIS?
Customers rely on RGIS for shrinkage audits because our independent, accurate analysis identifies losses, uncovers root causes, and provides actionable insights to strengthen stock control and reduce future shrink.
Our Solutions
The major car manufacturer partnered with RGIS to complete the motor parts shrinkage audit and provided the following:
RGIS logged onto the customer’s system and pulled the on-hand file the night before each motor parts specialist center audit
RGIS audited each motor parts specialist center using the on-hand data, which included the location of each item
The RGIS systems auto printed any discrepancy between audited quantity and on-hand expected quantity
RGIS supervisor double checked any discrepancies. If correct, supervisor checked the store system to see if the item had been recently sold
Accuracy measured on RGIS auditing error numbers
Store signed-off reports to confirm an accurate audit
Results
The major car manufacturer found that by outsourcing the motor parts shrinkage audit to RGIS to complete, the following was achieved:
Motor parts specialist center area compliance of 96%
Motor parts specialist center process compliance of 98%
Reduced write-off costs by $97,000
Completed all motor parts specialist center audits within a calendar year as required
Conclusion
By outsourcing the motor parts shrinkage audit to RGIS, the manufacturer achieved high compliance levels, reduced write-off costs by $97,000, and successfully completed all specialist center audits within the required calendar year—delivering measurable financial and operational improvements.
