A lot of money is spent building beautiful stores, restaurants and branches. Brands who have franchise partners and retail networks invest in fixtures, furniture & signage; demo products and branded displays.
All this expense can not only go to waste, but can be counterproductive if your locations and infrastructure are not well maintained. Our retail audit service ensures that doesn’t happen.
Comprehensive Stock Audit
Running an efficient store that delivers not only great customer experience, but also performs favorably on parameters such as stock turns, availability, shrinkage, operational expenses etc. depends on exercising good control over hundreds of important aspects. Organizations do this by defining design guidelines and processes and procedures for everything from staff uniforms to stocking norms.
MaxBusiness’s comprehensive store audit is a detailed audit where we measure compliance to all the guidelines defined by an organization. We study your processes to put together a comprehensive checklist or audit parameters, and our trained auditors conduct field audits to measure compliance. Data is collected in a reliable and transparent manner, along with evidence such as photographs to give a complete and correct picture of execution at stores.
Success at a Multi-Brand outlet depends on the availability of stock, prominence of the brand and product display, and the share and quality of recommendation by the in-store staff.
MaxBusiness’s mystery shoppers visit MBO outlets asking for a product in the same category, and observe which is the first product proposed by the staff. If our client’s product is not the first recommendation, the secret customer also inquires specifically about this product, and tries to measure staff attitudes towards it. The shopper also collects data about the availability and the visibility of the product in the store.
This data is used to create a Success Index score for the MBO – which is a measure of how successful the brand can expect to be at this store. The index is used for store and team incentivization, as well as for strategic decisions that impact the channel.
Visibility Audit helps the brands determine how effective is the marketing spend at the retail outlets.Through this audit the brand can know their shelf share, quantity, quality & placement of branding or promotional material present at the outlets and how effectively the retailer is using them towards improving their sales. Moreover, visibility audit can also capture other possible areas where the branding material would have better visibility.
Specialised inventory auditing for a range of business situations
Wholesale and retail
Wet and dry Stocktake
Multi site Stocktake
Business sale & transfer valuation
Retail and licensed trade Stocktake
Annual periodical or end of financial year Stocktake
Pubs and Clubs
Gold and Jewellery
A. The Inventory Count – Before
Before the client performs their inventory count, the MaxBusiness Stock auditor will typically review the client’s proposed policies/procedures pertaining to the inventory count. Some of these policies typically include:
Two-person count teams
Pre-numbered tags and proper sequencing
Halting the shipping and receiving of goods
Segregation of goods that are based on consignment
A master count sheet that is controlled only by the supervisor
The auditor will also select a sample of items, in advanced, to test on the day of the count. The auditor will use both representative and specific item (stratification) testing when possible.
B. The Inventory Count – During
The auditor observes whether the client complies with the proposed policies/procedures for the count – Are these procedures being performed correctly and efficiently?
Observe the quality and the condition of the goods – Is there any sign of impairment/obsolescence?
The auditor runs their own tests and makes note of the results. Any necessary adjustments must be followed up to ensure that the inventory records and general ledger reflect the adjustments.
Obtain important cut-off information to make sure that the inventory is counting goods that need to be counted and not counting goods that shouldn’t be counted. For example, obtain the last 5 shipping documents and receiving reports.
C. The Inventory Count – After
Match the quantities brought forward from the count to the recorded amounts on the ledger and book any adjustments that need to be made
Inventory must be valued at the lower of cost or market (also known as net realizable value)
Cost: Calculate the unit cost of inventory again to make sure pricing is accurately determined
Market: Examine subsequent sales of inventory to see if it was sold for more/less than cost or look at the gross profit margins.
D. Other Inventory Audit Issues
Other issues that may arise and be of concern to an auditor include the timing of the inventory observation. The observations usually take place at the end of October or the end of December. Typically, due to year-end holidays and/or weather issues, inventory observations are held in October. However, if the client is more prone to fraud/manipulation and is notorious for that, auditors may show up at the end of December to obtain more reliable data.
Another issue is whether the auditor needs to bring in a specialist or run some off-site testing to make sure that the inventory in the warehouse is genuine. For example, for some goods such as jewelry, grain, or other high-tech products, it is uncommon for the regular auditor to differentiate between real and fake goods. Auditors may want to bring in a specialist for a thorough examination or send some samples to a lab for proper testing.
Top 6 Benefits of Outsourcing Inventory Audits to MaxBusiness
Focus and Specialization: Strategy is about making choices. World class organizations don’t try to be good at everything, they seriously consider how they will invest their limited resources. At Quantum, we are the c-store audit specialists.
Finding and Keeping Great Talent: Your best people probably will not end up on your audit team because their talent is better leveraged in your c-store operations.
A Broader Perspective: Your audit process and approach is at risk of becoming insular and outdated. Outsourcing gives you access to the audit industry’s best practices.
Cost Effectiveness and Efficiency: When all the hard and soft costs of your audit program are considered, it is often less expensive and more cost effective to outsource.
Flexibility: With an internal team your audit costs become mostly a fixed expense item. With an outside provider, you pay only for the number of audits you need giving you budgeting flexibility without have to increase or decrease your staff.
Technology: Internal audit programs have to compete with other departments for technology and equipment investments. Will they win often enough to keep current?
Specialists can develop greater knowledge depth, invest more in software and training systems, be more efficient, and offer higher wages and attract more highly skilled people. With this greater knowledge depth and a wider range of client interactions, they can also become much more innovative than internal audit programs.
15 years of experience distilled into one successful system
Practice makes perfect. More than 15 years of experience have taught us the right and wrong way to conduct an audit. We call the right way our “Seven C’s.” We use this system for every audit, every client in every division nationwide.
What are the C’s?
Consistent Store Layout
Contracting with the Store Manager
Counting the Store
Closing the Audit
Calling for Help
Professional C-Store Auditors with Integrity
When it comes right down to it, auditing is a people business. If you don’t have the right people to execute audits, the best systems and technology in the world don’t mean much. We understand. That’s why we put such emphasis on integrity, professionalism, adaptability and recognition. Our people – and the values they live and work by – are what make us different than other inventory services.
Each year at least 5% of our revenue is directed at training and developing the highest skilled workforce in the industry. We pay significantly higher than others in the industry. We offer benefits. And we make sure that our employees get the recognition they deserve for a job well done. In short, we do every thing we can to attract the best, hire the best and keep the best.
Our auditors are full time employees who audit c-stores for a living. So when a Quantum auditor walks through your door, you know you are working with someone who “gets it.”
Interested to Know More about our services? Talk to us at 01149095741/41101741