Improving Inventory Control During 3PL to Self-Management Transition

CHALLENGE

An energy company’s warehouse, containing over 26,000 SKUs, faced major inventory accuracy issues following a data migration to a new Warehouse Management System (WMS). Errors in bin locations and discrepancies in stock levels were causing operational inefficiencies. To address these challenges, the energy company required RGIS’s expertise to bring the stock data back to an acceptable accuracy level, particularly during the complex transition from third-party logistics (3PL) to a self-managed system.

WHY RGIS?

The energy company chose RGIS due to its experience in handling complex inventory management projects, especially in industrial and resource sectors. RGIS’s team had already established a strong reputation within the industrial market, making them the first choice for the energy company’s inventory needs.

OUR SOLUTION

RGIS provided a tailored inventory service that addressed the specific challenges of the energy company’s site:

• Initial Site Assessment and Structured Process Development: RGIS began with a site visit, gathering structured data to develop a customized inventory process that encompassed pallet racking, small items, and floor-stored large items.
• Comprehensive Onboarding: Due to the complexities of the 3PL to self-management transition, RGIS implemented a thorough onboarding process, including compliance checks, specific training and hardware setup.
• Systematic Inventory Execution: The project involved three teams focusing on different storage areas, with dedicated processes for each. The teams recorded data, managed discrepancies and generated reports to identify and resolve stock variances.
• Continuous Communication and Real-Time Reporting: Throughout the project, RGIS provided the energy company with real-time data and variance reports, allowing them to adjust the inventory process and address discrepancies immediately.

RESULTS

• Improved Inventory Accuracy: The comprehensive inventory allowed the energy company to identify inaccuracies in bin locations and stock data, significantly improving inventory control.
• Reduction in Shrinkage: Through accurate data collection, RGIS helped the customer reduce shrinkage, allowing for better inventory management and operational efficiency.
• Positive Customer Feedback: The energy company expressed satisfaction with RGIS’s thorough approach, valuing the focus on accuracy over speed. The extended project timeline provided a deeper understanding of the inventory and helped the customer realize the importance of regular inventories for ongoing accuracy.

CONCLUSION

The energy company’s successful inventory transition with RGIS’s support has laid the groundwork for a potential long-term collaboration. Given the accuracy achieved, the customer is likely to continue engaging RGIS for future inventory services on a cyclical basis. This project underscores the value of careful planning and client communication in industrial settings, especially during system transitions.