Multi-site UK food manufacturer

Challenge

The client's annual stock losses were an almost unsustainable 10% of their annual holding.

IESA was tasked with reviewing the existing processes and making improvements within a 12-month period.

Objectives

  • IESA sought a complete overhaul of the entire inventory management system, including stock counts, recording of data and stock movements.
  • ISEA also planned major improvements to the security of the stores environment.

Solution

IESA discovered that the primary reason for the stock losses was a lack of control in the 'goods out' process during out-of-office hours.

IESA enlisted a security company to install turnstiles, CCTV motion sensor cameras, swipe card entry and caged areas.

The client's engineers and agreed contractors were then established on IESA systems, with swipe cards for logged and filmed entry to the stores.

Benefits

  • IESA declared a stock loss reduction in excess of 150% compared to the previous period.
  • Major improvements to the security system enabled IESA to sense check the goods out data against CCTV movements.
  • This allowed the client to establish when employees were taking product without physically booking it out.
  • The client was therefore able to reduce its high provision for engineering stores stock losses.