stocktaking case study

Third Party Audit of Stock from Manufacturer to Franchisee

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Customer

  • Sector

    Services

    third party audit of stock

    A major motor manufacturer that distributes vehicles and parts through franchises nationally.

    THE CHALLENGE

    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

    Why RGIS?

    A major motor manufacturer required an independent third party audit in order to manage and report stock levels at 80+ national sites.

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    Our Solutions

    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

    Conclusion

    By partnering with RGIS, the major motor manufacturer achieved a fully verified, digitally controlled stock audit across more than 80 national sites. The transition from manual paper checks to barcode-driven digital recording delivered a complete audit trail, 100% verified stock file in both units and value, and validated variance reporting at each location. The structured reconciliation process, including on-site investigation and system updates, provided transparent error-rate measurement and enabled performance benchmarking across franchisees. As a result, the manufacturer gained clear visibility of stock governance standards, identified operational gaps, and implemented an externally approved, auditable inventory control framework that strengthened compliance, accountability and financial accuracy across the network.

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