Motor Parts National Shrinkage Audit

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.

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% and save up to $97,000
  • Conduct an independant audit in all centers within a calendar year

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

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