Third Party Logistics Warehouse Pick Accuracy Audit at Store Level
An Australian chain of discount department stores, which was founded in regional New South Wales in 1964, required the support of RGIS. The company is a division of a larger group and operates 182 stores, with around 22,000 employees across Australia and Asia. The discount department store stocks clothing, health and beauty, garden, pet items, books, DVDs, CDs, some furniture items, snack food and small electrical household appliances.
The discount department store chain needed a solution to audit the pick accuracy within their own warehouse and a third party logistics (3PL) warehouse, once the stock arrived at store. The stores did not have personnel available to check what had been delivered was correct.
- The discount department store chain required RGIS to provide the following:
- Aid eliminating stock shrink by auditing deliveries from warehouse and 3PL
- Check stock deliveries at store level once the delivery is received
- Ensure stock being delivered was not held up during the process, preventing it being placed in store and creating a back log in the store room
The discount department store chain partnered with RGIS to complete the warehouse pick accuracy project, and RGIS provided the following:
- Scheduled 10 experienced RGIS auditors at each location to await deliveries
- Once the delivery arrived, pallets were placed in the storeroom where RGIS auditors unloaded and counted the stock on the pallets
- Once all stock was counted, cartons had to be re-stacked back onto pallets so that store staff could move the stock to the sorting stations in readiness for the stock to be taken out onto the shop floor
- Due to the discount chain not knowing specifically what stock was going to be delivered each day, RGIS audited deliveries for four consecutive weeks at each store. This enabled stock to be reconciled from day-to-day and any early or late deliveries tracked
The discount department store chain found by outsourcing the warehouse pick accuracy project to RGIS, the following results were achieved:
- All deliveries to stores were accurately checked over four weeks to ensure all deliveries were covered
- A baseline has been established for the warehouse pick accuracy
- All stock delivered was able to be transferred to the shop floor with no disruption