Bin locations
5,833
SKU's
5,837
Cycle counts
10
Conveniently located adjacent to a dealership is the state-of-the-art car service and parts centre – one of the largest and best-equipped service facility in Australia. The company has a team consisting of highly-trained certified master technicians and certified service advisors.
THE CHALLENGE
The car service and parts centre required RGIS to provide the following:
- Recommendations to give the most accurate stocktake
- Identify variances in stock quantities and bin locations
- Be aware of stock movements during counts
Why RGIS?
The car service and parts centre needed a solution to count the spare parts stored and wanted to achieve an accurate result of the end of financial year stocktaking.
Our Solutions
The car service and parts centre partnered with RGIS to complete the spare parts cycle count project, and RGIS provided the following:
RGIS recommended to complete 10 cycle counts before the wall-to-wall count, to fix the stock on-hand file in the longer term
Scheduled two experienced RGIS auditors for the cycle counts
Scheduled 20 experienced RGIS auditors for the full wall-to-wall count
RGIS completed all bins in eight cycle counts, but still completed another two for the high-value areas before the full wall-to-wall count
The warehouse did not freeze the system due to cycle counts, so the RGIS team used warehouse scanners to check the latest expected stock on-hand when checking variances and adjusted accordingly
The RGIS team not only verified the count, but also checked any stock movements during the cycle count
Results
The car service and parts centre found by outsourcing the spare parts cycle count project to RGIS, the following results were achieved:
5,833 Bins and 5,837 SKUs were counted and checked at least twice during cycle count and full wall-to-wall count
First round of cycle counts corrected major stock on-hand discrepancies and helped the warehouse staff understand which sections needed more attention while picking and packing
Result of full wall-to-wall count: Absolute variance = $53,178 (1.9% – which was within target), Net variance = $8,698 and Total Expected = $2,689,209
Conclusion
By implementing a structured cycle count programme ahead of the full wall-to-wall inventory, RGIS enabled the car service and parts centre to stabilise its stock on-hand file and significantly improve financial year-end accuracy. Early identification and correction of discrepancies strengthened warehouse discipline around bin control and stock movements, resulting in a tightly controlled final variance of just 1.9%, within target. The combined approach delivered not only a compliant and accurate year-end valuation, but also a more robust and sustainable inventory management process going forward.
