Need:
The largest retailer of automotive replacement parts and accessories in the United States recognized it had a problem:
Shrink rate had risen by 34.6% in the previous year
Profit margins were adversely impacted
Inventory accuracy was eroded, creating a ripple effect throughout the supply chain
Stock outs were impacting profitability and customer satisfaction
Solution:
They decided to attack their shrink problem by improving inventory accuracy. They formed an integrated business partnership with RGIS.
This vendor/client relationship is defined by:
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A strong collaboration
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Shared responsibility
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Open communications and constant adjustment
One unifying goal
Results:
They established a new standard for acceptable accuracy, supporting it with both strategy and resources. The impact on shrink was immediate.
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Shrink decreased by 33% in the first year
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Shrink rates have decreased every year since
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By 2014, shrink dropped to .64% of sales, far below the 1.38% North American retail rate*
Related Service: Retail Physical Inventory