Case Study 1

Challenge

One of the leading Indian retailers was facing operational inefficiencies due to a weak stock-taking process. Inaccurate stock counts and infrequent Stock-take were some of the major bottlenecks that caused delays and disruption in regular stock adjustments at the stores. The company also planned to introduce an Auto Replacement System, which required proper stock counts and independent audits.

Approach & Delivery

nhbs worked closely with Business Champions to design an inventory audit service. Three critical areas were kept in focus:

Results

Robust stock taking process: By collaborating with the business team, a simple yet accurate design was created.
Fast and accurate technology: This helped to do away with all manual dependencies.

Independent service:

The entire process was designed to be carried out independently at Arm’s length and strictly adhering the periodicity of counts and book correction .
nhbs recommended that the entire stock taking and process be outsourced . The stock audit process is now accurate, with proper books maintained at the store level, and timely book adjustments carried out. It also helped reducing the shrink levels.


Case Study 2

Challenge

A leading consumer goods company was challenged by inaccurate inventory information, and the high cost of inventory loss at various locations. The client was looking for expertise in inventory auditing, as: a) Their own employees were not skilled in counting processes and it took them away from their core activity b) The client wanted an objective voice in understanding inventory losses and suggesting improvements for controlling them c) The stock taking activity took a substantial amount of time and was becoming very costly

Approach & Delivery

nhbs was engaged to design a comprehensive inventory counting process that could manage the scale (locations and volume) as well as complexity (multiple business models and operating hours).
nhbs consultants worked closely with subject matter experts representing the client to design an inventory stock counting process. These critical areas were kept in focus:

Robust stock taking process:

A simple yet accurate design was created taking into account business operating parameters and stock movements that needed to be reconciled, after fully understanding the clients operating models.

Speed and accuracy:

Elimination of manual processes, increase in accuracy, reliability, and speed of processes was formulated.

Recommendation & Results

With nhbs taking charge of the inventory audit function, the client has benefitted by getting access to accurate inventory information. And with process controls implemented, the cost of actual inventory loss has decreased by over 30 percent. Better processes, trained manpower and superior technology have also reduced the cost of stock takes by over 25 percent.
nhbs follows a methodology of continuous improvement where new techniques to strengthen process controls and drive automation are progressively executed.