Third Party Audit of Stock from Manufacturer to Franchisee
A major motor manufacturer that distributes vehicles and parts through franchises nationally.
REQUIREMENT
A major motor manufacturer required an independent third party audit in order to manage and report stock levels at 80+ national sites. The customer’s requirements were to:
- Verify that stock was correct to held records and in correct bin locations
- Produce 100% verified stock file result in units and value
- Report the error rate % in units and value
- Move away from manual paper checks to digital recording
- Update the customer’s master system on site with a final list of variances
SOLUTION
RGIS worked with the major motor manufacturer to complete the following:
- Created a 100% verified result with full data audit trail
- Barcoded bin locations were labelled prior to count and scanned
- Loaded pre-count on-hand numbers in order to prepopulate for variance numbers
- A process to investigate and agree with site the actual variances
- Factoring in the days sales
RESULTS
By outsourcing the end-to-end verification audit to RGIS, the major motor manufacturer:
- Had a complete auditable rate for each centre/franchisee with a validated error rate
- Could identify both problem and successful franchisees
- Were able to establish franchisees that were not managing the stock out files
- Acquired a process signed off and approved by external auditors