Organisation, Structuring and Inventory of Materials in Warehouse

An American chemical and synthetic biotechnology company required the support of RGIS. The company was founded in 2003, and is focused on developing sustainable ingredients for the Health, Wellness, Beauty and Fragrance markets. It uses renewable carbon sources, coming from plants such as sugarcane. The company has operations in the United States and Brazil.

REQUIREMENTS

The biotechnology company needed to take control of stock in the warehouse. It was unorganised with no system in place to help them to identify stock, find the location of the stock or keep track of quantities of stock.

  • The company required a solution to create a new reliable database, with updated information on all stock and locations, so required RGIS to provide the following:
  • Complete a physical inventory count of the warehouse
  • Provide new and accurate inventory database of materials, the location and identification

SOLUTION

The biotechnology company partnered with RGIS to complete the organisation, structuring and inventory of materials project, and provided the following:

  • After initial meetings and visits RGIS compiled a detailed process and project plan
  • Scheduled a fixed team of 12 experienced RGIS auditors for the duration of the project
  • Reorganised the structure of stock and materials, allocating a defined area layout with restricted access to the stock
  • Identified stock and materials and documented the location
  • RGIS teams completed the physical inventory of stock and materials in the warehouse
  • Developed and implemented an inventory management application system for managing and controlling the movement of receipts, storage, separation, dispatch, concierge, audits and inventories
  • Accurately compiled, organised and cleaned the stock/materials register

RESULTS

The biotechnology company found by outsourcing the organisation, structuring and inventory of materials project to RGIS, the following results were achieved:

  • Accurately counted approximately 25,000 SKUs and achieving a stock accuracy of 99.8%
  • Achieved an 8% reduction in unnecessary purchases
  • Use of lost materials that were located by RGIS amounting to BRL 780K (US$ 151K)
  • Fulfillment of the delivery goals of the work avoiding contractual fines in the amount of R$ 2 MI (U$ 387K)
  • Savings of R$ 480K (U$ 93K) with the new inventory management system to control the company’s materials
  • Recovery of confidence among investors
  • The customer was very satisfied with the result