Empowering Retailers with Flexible Replenishment Solutions for Peak Periods
Case Study
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Reduced
Stock-outs
Improved
Accuracy
Reduced
Shrinkage
The leading retailer and a distributor of automotive replacement parts and accessories required the support of RGIS. The retailer has more than 6,000 stores and more than 85,000 customers supporting operations on four continents.
THE CHALLENGE
The auto parts retailer required RGIS to provide the following:
- Identify why shrink rate had risen by 34.6% on the previous year
- Reduce shrink, as profit margins were adversely impacted
- Improve inventory accuracy through accurate inventory counts at all stores
Why RGIS?
The auto parts retailer needed a solution to reduce the shrink number that was increasing year-on-year. The retailer’s inventory accuracy had eroded, creating a ripple effect throughout the supply chain, and stock outs were impacting profitability and customer satisfaction.
Our Solutions
The auto parts retailer partnered with RGIS to complete the inventory accuracy and shrink project, and RGIS provided the following:
Scheduled an experienced team of RGIS auditors
Accurately counted inventory at all stores
Identified variances
Reporting was sent directly to the customer after each count by location
Results
The auto parts retailer found by outsourcing the inventory accuracy and shrink project to RGIS, the following results were achieved:
Inventory accuracy was improved
Shrink decreased by 33% in the first year
Shrink rates have decreased every year since
Shrink further dropped to 64% of sales
Stock outs reduced dramatically
Conclusion
By partnering with RGIS to address inventory accuracy and shrink, the auto parts retailer gained clear visibility into the root causes of loss across its store estate. RGIS’s accurate counts and variance reporting enabled targeted corrective action, delivering rapid and sustained reductions in shrink while improving stock availability. As a result, the retailer protected margins, achieved year-on-year shrink improvement, and strengthened long-term inventory control.
