Optimising Inventory Accuracy for Energy Management Company With Advanced Technology
Case Study
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Years
2
Production plant
1
Warehouses
12
A company that manufactures and markets agrochemicals, industrial chemicals, chemical intermediates, and specialty chemicals, and also offers crop protection solutions, required the support of RGIS. The agrochemical manufacturer’s products are sold in over 150 countries.
THE CHALLENGE
The agrochemical manufacturer required RGIS to provide the following:
- Complete an analysis of the activities made over two years
- Submit a report which would allow the executive management to make decisions regarding the business model for the forthcoming years
- Areas for RGIS to analyse were the production plant (ABBOT), the main warehouse (FARACE), eleven regional warehouses hired by the company (third parties’ property) and to also include the stores distribution chain
Why RGIS?
The agrochemical manufacturer needed a solution to find, classify and quantify the causes which were creating a distortion between the system (SAP) and the customer’s physical stock.
Our Solutions
The agrochemical manufacturer partnered with RGIS to complete the internal supply chain audit project, and RGIS provided the following:
Worked closely with an agronomist engineer
RGIS scheduled a team of field auditors with experience in the agribusiness industry to carry out physical information gathering
Visual inspection, full stock taking (with ‘blind’ methodology) and preliminary conciliation at the sites reported as critical for the customer, due to being the last link in the distribution chain of the customer’s products in Argentina
Verification of shipments and receipts of products to warehouses
Claim refunds and alert for unjustified shortages to give intervention to the customer’s finance department
Verification of expiration of batches according to product
Sorted document files and requested documentation for unprocessed returns
Prepared a dashboard on the status and evolution of the audit that included the measurement of results
Completed full inventories in all the warehouses
Results
The agrochemical manufacturer found by outsourcing the internal supply chain audit project to RGIS, the following results were achieved:
RGIS was able to give recommendations to the customer in multiple areas on the logistic, commercial, administrative and accounting processes
The customer was now able to identify the causes of the anomalies between the system (SAP) and the customer’s physical stock
Conclusion
By partnering with RGIS for the internal supply chain audit, the manufacturer gained a comprehensive, objective assessment that identified the root causes of discrepancies between system records and physical stock. RGIS’s detailed analysis and reporting enabled informed decision-making across logistics, commercial, administrative and accounting functions, giving the client clarity on inventory anomalies and practical recommendations to strengthen its supply chain accuracy and performance.
