Inventory Count with Operational Audit for Food Warehouses
A Mexican company, founded in 1995, offering the food industry the highest quality ground, dehydrated and granular chilli peppers for use in sweets, sauces and snacks etc. required the support of RGIS. The company comply with the highest national quality standards established by the health authorities, as well as with the export quality standards dictated by the Food and Drug Administration (FDA).
REQUIREMENTS
The food manufacturer has plant and warehouses of raw materials, supplies and finished product which are audited internally four times a year. The customer needed assistance to ensure greater reliability and efficiency in the existing inventory process, and required an operational audit in order to review variances, so required RGIS to provide the following:
- Complete a count of all of the warehouses
- Update stock on hand levels for all stock
- Provide variance reports to identify operational issues
SOLUTION
The food manufacturer partnered with RGIS to complete the warehouse stock count project, and provided the following:
- Scheduled a team of 2-5 experienced RGIS auditors, per day over six days, for the warehouse count
- The operational audit was also carried out by an experienced RGIS auditor, reviewing the labelling and variances
- RGIS teams paired up with the customer’s external company which supported RGIS with the count
- The counting was completed by weighing each pallet or sack which contained the product, then discounting the weight of the actual pallet
RESULTS
The food manufacturer found by outsourcing the warehouse stock count project to RGIS, the following results were achieved:
- Accurately counted over 1,100,000 pieces across all of the warehouses
- Completed the count within two days, which is considerably faster than the customer’s internal audit
- Once the count was completed and data processed, RGIS produced a variance report
- A large number of differences were identified in the customer’s system from the variance report, that there were inconsistencies when transferring products between warehouses
- The customer was very satisfied with the services performed by RGIS, and was able update the system with up-to-date and accurate data provided and could manage any operational issues that had been identified