Distribution warehouse operators are continuously seeking efficiencies within their internal processes particularly in the areas of picking and logistics, as well as their environmental impacts. Success requires maintaining the highest levels of customer satisfaction, whilst reducing operational costs and wastage.
RAS has recently been commissioned by a grocery retailer to complete supplier audits to monitor; supplier delivery accuracy, ASN display until date accuracy and minimum life to depot accuracy, all as contractually agreed with their suppliers.
The retailer approached RAS for support in providing specific supplier audits with daily reporting that could measure and analyse three critical areas:
(i) Delivery accuracy
(ii) ASN display until date accuracy
(iii) Minimum life to depot accuracy
RAS defined the project scope and objectives, ensuring that all the criteria would be met to fulfil the retailer’s audit requirements.
To support this process RAS:
– Conducted a stakeholder engagement session
– Developed the audit application Prosper to capture new types of data
– Scheduled split shifts to provide full coverage across the project term
– Enhanced checks on high-shrink suppliers
The project ran for 2 weeks, across 2 depots. The retailer’s initial suspicions were confirmed in the final analysis, which was the reason why they had sought independent auditors in the first place.
In total, RAS conducted checks on 64,000 cases which highlighted error rated of (i) 99.45% for delivery accuracy (ii) ASN display until date accuracy 95.85% and (iii) minimum life to depot accuracy 58.78%.
The conclusion reached was that date variances at point of goods-in was the root cause of store shrinkage. Equipped with the data, the retailer was able to resolve this with their suppliers and manage the stock rotation in line with the risk elements.