stocktaking case study

Organisation and Labelling of Returned Products in Warehouse

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  • Items

    3,400,000

  • Auditors

    10

  • Distribution Centre

    1

Customer

  • Sector

    Organisation and Labelling of Returned Products

    A Mexican pharmaceutical manufacturer founded in 1941, produces and manufactures pharmaceutical, OTC, oncological and veterinarian products in Latin America. The pharmaceutical manufacturer has around 7,000 employees and subsidiary companies in Argentina, Chile, Colombia, Ecuador and Peru.

    THE CHALLENGE

    The pharmaceutical manufacturer approached RGIS because there was a large quantity of rejected products accumulating in one of the distribution centres in Mexico. There was no information held internally about the products, so the customer required RGIS to provide the following:

    • Count all products within a specified area of the distribution centre
    • Obtain information about product condition and expiry date
    • Sort products into the relevant laboratory
    • All data to be captured and reported electronically
    • Adhere to current COVID-19 guidelines

    Why RGIS?

    Customers use RGIS for the organisation and labelling of returned products to regain control and visibility over stock that lacks clear identification or records. This structured approach ensures accurate data capture, compliant handling, and efficient reintegration or disposal of returned inventory.

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    Our Solutions

    The pharmaceutical manufacturer partnered with RGIS to complete the organisation of returned products project, and provided the following:

    • RGIS scheduled a team of 10 experienced auditors for eight weeks on 10-12 hour shifts

    • Relocated largest boxes to a specific area to sort

    • RGIS auditors worked alongside warehouse staff, removing items from boxes and scanning all products in the boxes

    • All data was captured for each product including expiry dates

    • Products were then repackaged and boxes were clearly labelled with the contents

    • A number was assigned to each box, so that within the electronic files there was the information of the products inside the boxes as well as the box numbers per pallet

    • Once all boxes were counted and data captured, they were placed in pallets and racks

    Results

    The pharmaceutical manufacturer found by outsourcing the organisation of returned products project to RGIS, the following results were achieved:

    • Accurately counted a total of 3.4 million items

    • The situation evolved from boxes piled in rooms with no access to them and no information of the content, to DC organisation with products on pallets, identification on the carton boxes and data on the content of every single carton box

    • The customer was very happy with the performance and asked RGIS to do the inventories of another two sections of their new distribution centre

    Conclusion

    By partnering with RGIS to organise and audit returned pharmaceutical products, the manufacturer transformed an unstructured accumulation of rejected stock into a fully documented, controlled inventory. RGIS’s disciplined processes, extended on-site support, and electronic data capture delivered accurate visibility of product condition and expiry while meeting COVID-19 requirements. As a result, the customer regained control of returned inventory, improved distribution centre organisation, and extended the engagement to additional areas of the new facility.

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